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CyberArk and Manitowoc have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 17, 2024 – Zacks Equity Research shares CyberArk Software (CYBR - Free Report) as the Bull of the Day and Manitowoc Company (MTW - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla (TSLA - Free Report) , General Motors (GM - Free Report) and Ford (F - Free Report) .
CyberArk Software has remained in the upper realms of the Zacks Rank since its last stunning beat and raise quarter reported in early February.
With its 72% EPS beat for Q4, the mid-cap leader in end-to-end identity security and continuous cyber threat detection has now posted four consecutive quarters averaging a positive surprise of 76%.
After its post-earnings 20% surge, CYBR stock nosed into the big-cap arena with a market capitalization of over $11 billion.
And barring a bigger stock market correction, it will likely remain there as the company's outlook keeps pushing higher for both sales and profits, forcing Wall Street analysts to keep raising their estimates.
Current consensus projections are making growth investors salivate as CyberArk is able to leverage its recurring revenues, subscriptions, and margins into higher realms of profitability...
Estimates as of 4/16/24
2024 Revenue: +23.2% to $926M 2025 Revenue: +22.3% to $1.13B
2024 EPS: +57% to $1.76 2025 EPS: +90% to $3.34
Given this strong growth outlook, investors and analysts will be watching with eyes wide when CyberArk reports its Q2 results in early May.
The link above is to my Zacks Confidential special report in October where I recommended buying shares of CYBR under $170. I also suggested buying CrowdStrike, Okta, and Datadog.
You can get the rationale for loading up on 4 unique players in the full report. Here, let's review part of the CYBR growth story...
In the fourth quarter of 2023, the Identity Security solution provider’s reported revenues increased 32% year over year to $223.1 million and surpassed the consensus mark of $209.7 million. Markedly, more than 90% of quarterly revenues were recurring in nature, which surged 41% year over year to $201.5 million.
Annual Recurring Revenues (“ARR”) increased 36% to $774 million. The subscription portion, which accounted for 75% of the total ARR, soared 60% year over year to $582 million. This upside was primarily driven by a record number of software-as-a-service solution bookings and the strong demand for on-premise subscription offerings.
In my State of Threat: Cyber Crime 3.0 report, I wrote this...
With more big hacks and data breaches in the past few months, including MGM, 23andMe, and Flagstar Bank of Michigan -- their third since 2021 -- it’s becoming clear that a permanent state of ever-sophisticated threats exist for companies of all sizes.
We may have naively thought at some point in the past few years that cybersecurity companies, armed with big technology, bigger enterprise customer budgets, and highly-skilled people, would eventually close the gaps in corporate defenses.
But that dream has faded into a much more sober realization. Cyber crime is now one of the most advanced organized criminal ventures on the planet.
From state-sanctioned hacking, theft, and espionage to the incredible digital reach of skilled, armed bad actors across the globe, the lure of endless power and riches compares to any revolution in human history -- including the great Age of Exploration in the 16th to 18th centuries.
Note: I just read SpaceX engineer Andrew Rader’s book Beyond the Known for the second time and he knows his seafaring history as well as anyone. Highly recommend it.
But it gets worse. Just as we come to grips with the bad guys always being one step ahead of our latest data defenses, a new weapon has been presented to them that will intensify the war exponentially.
That weapon, of course, is Artificial Intelligence (AI). As much as I praise the growth and advancement that AI is bringing to industry, science, and society, we can easily see it is a double-edged sword when hidden forces can manipulate and destroy from a safe distance in their cyber bunkers.
(end of excerpt from my Zacks Confidential special report)
To see the full detailed report with expert analysis on cybercrime scope, projections, and costs, just go to State of Threat.
If you don't have a subscription to Zacks Confidential -- where one of a dozen analysts writes a unique research report on a particular industry, sector, or economy-wide growth trend every Monday -- it is by far one of the best deals in investment analysis anywhere at under $100 per year.
Last time I checked it was still only $59 a year for 52 fresh, proprietary reports. And you get access to all the archives going back several years. Whatever the current price, you can get a 30-day trial for a buck and see for yourself if you find value in our research and stock picks.
The Manitowoc Company is a global provider of crane-based lifting solutions for the world's builders of skyscrapers, bridges, mining, and other complex projects requiring heavy vertical feats.
Founded in 1902, MTW provides engineered lifting solutions for numerous industries, from housing to helipads. They serve these diverse markets through a comprehensive product line of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, telescoping, and tower cranes.
Their equipment is offered under mulitple brands including Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain and Shuttlelift brand names.
As a Wisconsin resident, with a big heart for old-school manufacturing like Harley Davidson, Briggs & Stratton, Kohler, Mercury Marine, and Oshkosh, I take no pleasure in writing about the earnings decline of MTW.
But here we are and I think the stock is providing good value at these levels.
The subsequent Wall Street reactions from MTW results and guidance took EPS estimates down significantly.
But in my view, this industrial stalwart with a $500 million market cap is worth far more given sales of $2.3 billion -- especially since commercial real estate barely flinched during the past few years of the "office exodus."
So let's stay tuned for the next buying opportunity in MTW during this current earnings hiccup. The Zacks Rank will let us know.
Additional content:
Tesla to Cut Jobs by 10% to Manage Costs vs. Low EV Sales
Electric vehicle (EV) titan Tesla is slashing its global headcount by 10%. Tesla employed more than 140,000 people by the end of 2023. The latest round of job cuts will affect roughly 14,000 workers as Tesla aims to reduce costs and boost productivity.
Amid shrinking EV sales worldwide and intensified competition, Tesla’s profit margins have been narrowing. The company is resorting to frequent model price cuts in a bid to increase sales. The once enviable growth prospects of the company are getting clouded. TSLA’s CEO Elon Musk emphasized the significance of cost containment measures as the company prepares for its next phase of growth led by next-generation vehicles. The lineup is expected to include a robotaxi and a more affordable model aimed at expanding Tesla's presence in the mass market.
Quoting from the leaked company-wide email sent by Musk, “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity. As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Some recent developments also hinted at potential layoffs. Tesla paused some stock rewards, canceled some employees' annual reviews and reduced production at Gigafactory Shanghai. Over the weekend, rumors were rife that layoffs were imminent. These rumors suggested that the layoffs could impact up to 20% of its workers. Therefore, the announcement of job cuts is not much of a surprise.
The news follows disappointing first-quarter 2024 vehicle deliveries data released by the company earlier this month. It marked the first year-over-year drop in quarterly deliveries since 2020. Global deliveries slumped to the lowest level in nearly two years on the back of worsening demand for EVs, sparking concerns about the company’s growth prospects this year.
Tesla delivered 386,810 cars (369,783 Model 3 and Y, and 17,027 Model S and X) worldwide in the first quarter, down 8.5% year over year and below the estimate of 457,000 as compiled by FactSet. It produced 433,371 vehicles (412,376 Model 3 and Y and 20,995 Model S and X) during the quarter, down 1.7% from the year-ago quarter.
While Tesla does not break up sales by geographical region, the pressure is especially high in China, the world’s biggest auto market and the U.S. EV maker’s second-largest market by sales, where competition between local EV makers and foreign carmakers is heating up. Tesla’s share in China’s EV and hybrid market segment slid in the first two months of the year.
The company is set to release its first-quarter 2024 results on Apr 23. The company currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 18.2%, respectively. The EPS estimates for 2024 and 2025 have improved by 8 cents and 9 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for F’s 2024 and 2025 EPS has moved up by 13 cents and 24 cents, respectively, in the past 90 days. The auto giant surpassed earnings estimates in three out of the trailing four quarters and missed in the remaining one, with the average surprise being 59.4%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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CyberArk and Manitowoc have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 17, 2024 – Zacks Equity Research shares CyberArk Software (CYBR - Free Report) as the Bull of the Day and Manitowoc Company (MTW - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla (TSLA - Free Report) , General Motors (GM - Free Report) and Ford (F - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
CyberArk Software has remained in the upper realms of the Zacks Rank since its last stunning beat and raise quarter reported in early February.
With its 72% EPS beat for Q4, the mid-cap leader in end-to-end identity security and continuous cyber threat detection has now posted four consecutive quarters averaging a positive surprise of 76%.
After its post-earnings 20% surge, CYBR stock nosed into the big-cap arena with a market capitalization of over $11 billion.
And barring a bigger stock market correction, it will likely remain there as the company's outlook keeps pushing higher for both sales and profits, forcing Wall Street analysts to keep raising their estimates.
Current consensus projections are making growth investors salivate as CyberArk is able to leverage its recurring revenues, subscriptions, and margins into higher realms of profitability...
Estimates as of 4/16/24
2024 Revenue: +23.2% to $926M
2025 Revenue: +22.3% to $1.13B
2024 EPS: +57% to $1.76
2025 EPS: +90% to $3.34
Given this strong growth outlook, investors and analysts will be watching with eyes wide when CyberArk reports its Q2 results in early May.
State of Threat: Cyber Crime 3.0
The link above is to my Zacks Confidential special report in October where I recommended buying shares of CYBR under $170. I also suggested buying CrowdStrike, Okta, and Datadog.
You can get the rationale for loading up on 4 unique players in the full report. Here, let's review part of the CYBR growth story...
In the fourth quarter of 2023, the Identity Security solution provider’s reported revenues increased 32% year over year to $223.1 million and surpassed the consensus mark of $209.7 million. Markedly, more than 90% of quarterly revenues were recurring in nature, which surged 41% year over year to $201.5 million.
Annual Recurring Revenues (“ARR”) increased 36% to $774 million. The subscription portion, which accounted for 75% of the total ARR, soared 60% year over year to $582 million. This upside was primarily driven by a record number of software-as-a-service solution bookings and the strong demand for on-premise subscription offerings.
In my State of Threat: Cyber Crime 3.0 report, I wrote this...
With more big hacks and data breaches in the past few months, including MGM, 23andMe, and Flagstar Bank of Michigan -- their third since 2021 -- it’s becoming clear that a permanent state of ever-sophisticated threats exist for companies of all sizes.
We may have naively thought at some point in the past few years that cybersecurity companies, armed with big technology, bigger enterprise customer budgets, and highly-skilled people, would eventually close the gaps in corporate defenses.
But that dream has faded into a much more sober realization. Cyber crime is now one of the most advanced organized criminal ventures on the planet.
From state-sanctioned hacking, theft, and espionage to the incredible digital reach of skilled, armed bad actors across the globe, the lure of endless power and riches compares to any revolution in human history -- including the great Age of Exploration in the 16th to 18th centuries.
Note: I just read SpaceX engineer Andrew Rader’s book Beyond the Known for the second time and he knows his seafaring history as well as anyone. Highly recommend it.
But it gets worse. Just as we come to grips with the bad guys always being one step ahead of our latest data defenses, a new weapon has been presented to them that will intensify the war exponentially.
That weapon, of course, is Artificial Intelligence (AI). As much as I praise the growth and advancement that AI is bringing to industry, science, and society, we can easily see it is a double-edged sword when hidden forces can manipulate and destroy from a safe distance in their cyber bunkers.
(end of excerpt from my Zacks Confidential special report)
To see the full detailed report with expert analysis on cybercrime scope, projections, and costs, just go to State of Threat.
If you don't have a subscription to Zacks Confidential -- where one of a dozen analysts writes a unique research report on a particular industry, sector, or economy-wide growth trend every Monday -- it is by far one of the best deals in investment analysis anywhere at under $100 per year.
Last time I checked it was still only $59 a year for 52 fresh, proprietary reports. And you get access to all the archives going back several years. Whatever the current price, you can get a 30-day trial for a buck and see for yourself if you find value in our research and stock picks.
Bear of the Day:
The Manitowoc Company is a global provider of crane-based lifting solutions for the world's builders of skyscrapers, bridges, mining, and other complex projects requiring heavy vertical feats.
Founded in 1902, MTW provides engineered lifting solutions for numerous industries, from housing to helipads. They serve these diverse markets through a comprehensive product line of mobile hydraulic cranes, lattice-boom crawler cranes, boom trucks, telescoping, and tower cranes.
Their equipment is offered under mulitple brands including Aspen Equipment, Grove, Manitowoc, MGX Equipment Services, National Crane, Potain and Shuttlelift brand names.
As a Wisconsin resident, with a big heart for old-school manufacturing like Harley Davidson, Briggs & Stratton, Kohler, Mercury Marine, and Oshkosh, I take no pleasure in writing about the earnings decline of MTW.
But here we are and I think the stock is providing good value at these levels.
Why the Zacks #5 Rank?
You can learn more about the company's last quarterly report here.
The subsequent Wall Street reactions from MTW results and guidance took EPS estimates down significantly.
But in my view, this industrial stalwart with a $500 million market cap is worth far more given sales of $2.3 billion -- especially since commercial real estate barely flinched during the past few years of the "office exodus."
So let's stay tuned for the next buying opportunity in MTW during this current earnings hiccup. The Zacks Rank will let us know.
Additional content:
Tesla to Cut Jobs by 10% to Manage Costs vs. Low EV Sales
Electric vehicle (EV) titan Tesla is slashing its global headcount by 10%. Tesla employed more than 140,000 people by the end of 2023. The latest round of job cuts will affect roughly 14,000 workers as Tesla aims to reduce costs and boost productivity.
Amid shrinking EV sales worldwide and intensified competition, Tesla’s profit margins have been narrowing. The company is resorting to frequent model price cuts in a bid to increase sales. The once enviable growth prospects of the company are getting clouded. TSLA’s CEO Elon Musk emphasized the significance of cost containment measures as the company prepares for its next phase of growth led by next-generation vehicles. The lineup is expected to include a robotaxi and a more affordable model aimed at expanding Tesla's presence in the mass market.
Quoting from the leaked company-wide email sent by Musk, “As we prepare the company for our next phase of growth, it is extremely important to look at every aspect of the company for cost reductions and increasing productivity. As part of this effort, we have done a thorough review of the organization and made the difficult decision to reduce our headcount by more than 10% globally. There is nothing I hate more, but it must be done. This will enable us to be lean, innovative and hungry for the next growth phase cycle.”
Some recent developments also hinted at potential layoffs. Tesla paused some stock rewards, canceled some employees' annual reviews and reduced production at Gigafactory Shanghai. Over the weekend, rumors were rife that layoffs were imminent. These rumors suggested that the layoffs could impact up to 20% of its workers. Therefore, the announcement of job cuts is not much of a surprise.
The news follows disappointing first-quarter 2024 vehicle deliveries data released by the company earlier this month. It marked the first year-over-year drop in quarterly deliveries since 2020. Global deliveries slumped to the lowest level in nearly two years on the back of worsening demand for EVs, sparking concerns about the company’s growth prospects this year.
Tesla delivered 386,810 cars (369,783 Model 3 and Y, and 17,027 Model S and X) worldwide in the first quarter, down 8.5% year over year and below the estimate of 457,000 as compiled by FactSet. It produced 433,371 vehicles (412,376 Model 3 and Y and 20,995 Model S and X) during the quarter, down 1.7% from the year-ago quarter.
While Tesla does not break up sales by geographical region, the pressure is especially high in China, the world’s biggest auto market and the U.S. EV maker’s second-largest market by sales, where competition between local EV makers and foreign carmakers is heating up. Tesla’s share in China’s EV and hybrid market segment slid in the first two months of the year.
The company is set to release its first-quarter 2024 results on Apr 23. The company currently carries a Zacks Rank #5 (Strong Sell).
Key Picks
If you wish to invest in the auto space, consider adding stocks like General Motors and Ford to your portfolio. Each of these companies currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for GM’s 2024 sales and earnings suggests year-over-year growth of 1.8% and 18.2%, respectively. The EPS estimates for 2024 and 2025 have improved by 8 cents and 9 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for F’s 2024 and 2025 EPS has moved up by 13 cents and 24 cents, respectively, in the past 90 days. The auto giant surpassed earnings estimates in three out of the trailing four quarters and missed in the remaining one, with the average surprise being 59.4%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.