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AvidXchange and RCI Hospitality have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – May 20, 2024 – Zacks Equity Research shares AvidXchange (AVDX - Free Report) , as the Bull of the Day and RCI Hospitality (RICK - Free Report) , asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Energy Transfer LP (ET - Free Report) , Kinder Morgan Inc. (KMI - Free Report) and Phillips 66 (PSX - Free Report)
What an incredible breakout for the market in recent weeks. It seems like there is just no stopping us, despite the constant threat of global conflict, raging inflationary pressure, and increasingly hawkish central banks around the world. It may feel like no matter what stock you decide to invest in, it’s going to turn out alright. A word of caution though. Eventually, earnings are going to matter, especially when the market reels in a bit.
One way of finding stocks with the best earnings trends is by checking out Zacks Rank #1 (Strong Buy) stocks like today’s Bull of the Day, AvidXchange. AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions.
The reason for the favorable rank is that three analysts have increased their estimates for both the current year and next year. That has pushed up the Zacks Consensus Estimate for the current year from 12 cents to 22 cents over the last ninety days. Estimates are also up from 31 cents to 35 cents for next year. That means current year earnings growth is slated to come in at 214% while next year’s number is set to increase 55.68%.
Since bottoming out in early 2022, estimates have continued to tick to the upside for the stock. Also, the company keeps beating estimates quarter in and quarter out. Last quarter’s number came out twice as good as expected.
Don’t tell the stock market, but there have been some signs that the economy is beginning to slow down. While it’s not a broad-based collapse or anything frightening like that, there are some areas experiencing the pinch. Recently, today’s Bear of the Day referenced that pinch in its latest earnings report. It’s currently a Zacks Rank #5 (Strong Sell) and we are going to investigate the reasons why.
I’m talking about RCI Hospitality. RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments.
On May 9th, the company reported non-GAAP EPS of 90 cents on revenues of $72.3 million, with adjusted EBITDA of $17.2 million. Both the EPS and revenue number fell well shy of last year’s numbers. The GAAP EPS of 8 cents was a far departure from the 81-cent number the market was expecting. That marked the fourth consecutive quarterly miss.
There was a bright spot in the quarter though. The company’s CEO commented on the conference call that its Bombshells segment saw “steady sales and better margins on a sequential quarter basis.”
The bad quarter caused analysts to cut their expectations for the current year and next year. The drop in expectations has brought our Zacks Consensus Estimates for the current year down from $4.37 to $3.84 while next year’s number is off from $6.23 to $6.00. Those are on revenue growth of 1.28% this year and 7.51% next year.
RCI Hospitality is in the Leisure and Recreation Services industry which ranks in the Bottom 41% of our Zacks Industry Rank.
Additional content:
3 Energy Stocks Hiking Dividends to Keep on Your Radar
Investors generally favor companies that demonstrate a strong commitment to returning capital to shareholders. Beyond price appreciation, dividends and share buybacks offer additional satisfaction. This is particularly important in the energy sector, where companies that return value to shareholders inspire greater confidence among investors due to the sector's inherent volatility in oil and natural gas prices.
Major energy companies have released first-quarter 2024 results, with several announcing dividend increases. Investors should keep an eye on Energy Transfer LP, Kinder Morgan Inc. and Phillips 66, as these energy players have raised their dividends/distributions and demonstrated a strong ability to continue returning value to shareholders/unitholders.
As one of North America's leading energy infrastructure companies, Kinder Morgan maintains a stable business model with minimal exposure to commodity price fluctuations. The company generates most of its earnings through take-or-pay contracts, ensuring consistent cash flow and bottom-line stability, enabling it to reward shareholders with dividends.
Last month, along with the first-quarter 2024 earnings, Kinder Morgan declared authorizations from the board of directors to increase its dividend to 28.75 cents per share for the March quarter from the prior quarter’s 28.25 cents. The increased dividend was paid on May 15 to stockholders of record as of the close of business on Apr 30.
Phillips 66 has a diversified business model, with a significant presence in businesses related to refining midstream, chemicals and marketing & specialties. In each of its operations, Phillips 66 has a solid footprint pertaining to safety, profitability, size and competitive strengths.
The diversified business model will aid the company in fulfilling its commitment to returning capital to shareholders. Early last month, PSX announced authorization from the board of directors to increase its quarterly dividend to $1.15 per share from the prior amount of $1.05.
Notably, since July 2022, the company has returned a massive $9.9 billion through both dividends and share repurchases. By the end of this year, it expects to meet its target of returning $13 billion to $15 billion to shareholders.
Energy Transfer generates stable fee-based revenues from its huge network of midstream infrastructures, including a pipeline network spreading across more than 125,000 miles. The natural gas transportation and storage assets of the largest and most diversified midstream players have a lower vulnerability to fluctuations in commodity prices, suggesting a stable business model.
On Apr 24, the partnership announced a cash distribution of 31.75 cents per unit for first-quarter 2024, reflecting an increase from 31.5 cents for the fourth quarter. The hiked distribution will be paid on May 20 to unitholders of record as of the close of business on May 13. Notably, the recent acquisition of Crestwood Equity Partners LP has further diversified its gathering and processing assets and reduced costs, likely boosting free cash flow and enabling higher distribution growth and unit buybacks.
Why Haven’t You Looked at Zacks' Top Stocks?
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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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AvidXchange and RCI Hospitality have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – May 20, 2024 – Zacks Equity Research shares AvidXchange (AVDX - Free Report) , as the Bull of the Day and RCI Hospitality (RICK - Free Report) , asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Energy Transfer LP (ET - Free Report) , Kinder Morgan Inc. (KMI - Free Report) and Phillips 66 (PSX - Free Report)
Here is a synopsis of all five stocks:
Bull of the Day:
What an incredible breakout for the market in recent weeks. It seems like there is just no stopping us, despite the constant threat of global conflict, raging inflationary pressure, and increasingly hawkish central banks around the world. It may feel like no matter what stock you decide to invest in, it’s going to turn out alright. A word of caution though. Eventually, earnings are going to matter, especially when the market reels in a bit.
One way of finding stocks with the best earnings trends is by checking out Zacks Rank #1 (Strong Buy) stocks like today’s Bull of the Day, AvidXchange. AvidXchange Holdings, Inc. provides accounts payable (AP) automation software and payment solutions for middle market businesses and their suppliers in North America. The company offers AP automation software, a SaaS-based solution that automates and digitizes capture, review, approval, and payment of invoices for buyers; the AvidPay network that connects two-sided payments with buyers and suppliers; and the AvidXchange Supplier Hub, which provides supplier insights to cash flow, tools for in-network invoices and payments, and early payment feature. Its platform offers electronic invoice capture, workflow routing, and automated payments solutions.
The reason for the favorable rank is that three analysts have increased their estimates for both the current year and next year. That has pushed up the Zacks Consensus Estimate for the current year from 12 cents to 22 cents over the last ninety days. Estimates are also up from 31 cents to 35 cents for next year. That means current year earnings growth is slated to come in at 214% while next year’s number is set to increase 55.68%.
Since bottoming out in early 2022, estimates have continued to tick to the upside for the stock. Also, the company keeps beating estimates quarter in and quarter out. Last quarter’s number came out twice as good as expected.
Bear of the Day:
Don’t tell the stock market, but there have been some signs that the economy is beginning to slow down. While it’s not a broad-based collapse or anything frightening like that, there are some areas experiencing the pinch. Recently, today’s Bear of the Day referenced that pinch in its latest earnings report. It’s currently a Zacks Rank #5 (Strong Sell) and we are going to investigate the reasons why.
I’m talking about RCI Hospitality. RCI Hospitality Holdings, Inc., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments.
On May 9th, the company reported non-GAAP EPS of 90 cents on revenues of $72.3 million, with adjusted EBITDA of $17.2 million. Both the EPS and revenue number fell well shy of last year’s numbers. The GAAP EPS of 8 cents was a far departure from the 81-cent number the market was expecting. That marked the fourth consecutive quarterly miss.
There was a bright spot in the quarter though. The company’s CEO commented on the conference call that its Bombshells segment saw “steady sales and better margins on a sequential quarter basis.”
The bad quarter caused analysts to cut their expectations for the current year and next year. The drop in expectations has brought our Zacks Consensus Estimates for the current year down from $4.37 to $3.84 while next year’s number is off from $6.23 to $6.00. Those are on revenue growth of 1.28% this year and 7.51% next year.
RCI Hospitality is in the Leisure and Recreation Services industry which ranks in the Bottom 41% of our Zacks Industry Rank.
Additional content:
3 Energy Stocks Hiking Dividends to Keep on Your Radar
Investors generally favor companies that demonstrate a strong commitment to returning capital to shareholders. Beyond price appreciation, dividends and share buybacks offer additional satisfaction. This is particularly important in the energy sector, where companies that return value to shareholders inspire greater confidence among investors due to the sector's inherent volatility in oil and natural gas prices.
Major energy companies have released first-quarter 2024 results, with several announcing dividend increases. Investors should keep an eye on Energy Transfer LP, Kinder Morgan Inc. and Phillips 66, as these energy players have raised their dividends/distributions and demonstrated a strong ability to continue returning value to shareholders/unitholders.
All the players currently have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks That Hiked Dividend
As one of North America's leading energy infrastructure companies, Kinder Morgan maintains a stable business model with minimal exposure to commodity price fluctuations. The company generates most of its earnings through take-or-pay contracts, ensuring consistent cash flow and bottom-line stability, enabling it to reward shareholders with dividends.
Last month, along with the first-quarter 2024 earnings, Kinder Morgan declared authorizations from the board of directors to increase its dividend to 28.75 cents per share for the March quarter from the prior quarter’s 28.25 cents. The increased dividend was paid on May 15 to stockholders of record as of the close of business on Apr 30.
Phillips 66 has a diversified business model, with a significant presence in businesses related to refining midstream, chemicals and marketing & specialties. In each of its operations, Phillips 66 has a solid footprint pertaining to safety, profitability, size and competitive strengths.
The diversified business model will aid the company in fulfilling its commitment to returning capital to shareholders. Early last month, PSX announced authorization from the board of directors to increase its quarterly dividend to $1.15 per share from the prior amount of $1.05.
Notably, since July 2022, the company has returned a massive $9.9 billion through both dividends and share repurchases. By the end of this year, it expects to meet its target of returning $13 billion to $15 billion to shareholders.
Energy Transfer generates stable fee-based revenues from its huge network of midstream infrastructures, including a pipeline network spreading across more than 125,000 miles. The natural gas transportation and storage assets of the largest and most diversified midstream players have a lower vulnerability to fluctuations in commodity prices, suggesting a stable business model.
On Apr 24, the partnership announced a cash distribution of 31.75 cents per unit for first-quarter 2024, reflecting an increase from 31.5 cents for the fourth quarter. The hiked distribution will be paid on May 20 to unitholders of record as of the close of business on May 13. Notably, the recent acquisition of Crestwood Equity Partners LP has further diversified its gathering and processing assets and reduced costs, likely boosting free cash flow and enabling higher distribution growth and unit buybacks.
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 >>
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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.