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Archer Daniels Midland, Overstock.Com and Las Vegas Sands highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – April 26, 2018 – Zacks Equity Research highlights Archer Daniels Midland (ADM - Free Report) as the Bull of the Day, Overstock.Com as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Las Vegas Sands Corp. (LVS - Free Report) .
Archer Daniels Midland stock has been on a tear since a Q4 earnings beat in February and the good times look to continue as we head into the Q1 earnings report next week. Expected to earn $0.70/share last quarter, ADM surprised the markets, posting $0.82/share – a 17% beat.
In the Q4 report, CEO Juan Luciano commented, “For 2017 as a whole, we grew earnings per share, improved on returns on invested capital and generated positive EVA. Looking ahead, we expect improving results through 2018 as our strategy advances.”
Food Processing Giant
The Illinois-based agricultural giant was founded in 1902 and is a leading provider of food ingredients, serving 170 countries around the world. They are one of the world’s largest agricultural processors and food ingredient providers, with 31,000 employees, 500 crop procurement locations and 270 ingredient manufacturing facilities.
Archer Daniels Midland operates in four main market segments: Agricultural Services, Oilseeds Processing , Corn Processing and Flavors and Special Ingredients. Showing a growth rate of 9% recently (versus an industry average of 4.2%) they continually redesign their core businesses to reflect evolving consumer tastes. They aggressively manage expenses with the current initiative expected to provide $550M in run rate cost savings over the next five years.
They also often make strategic acquisitions world-wide to penetrate previously unserved markets.
Stable Food Stocks
Recently, we discussed the bright prospects for four wholesale/retail food companies in a growing economic environment (read the article here), Archer Daniels Midland is one step up the chain, supplying the raw materials for the finished foods everyone eats every day.
With 5 analyst upgrades for 2018 in the past 60 days versus zero downgrades, Archer Daniels Midland earns a Zacks Rank #1 (Strong Buy).
Intelligent investors need to know that the companies they invest in have a clear mission. It can be acceptable for an aggressively growing firm to invest current revenues in future operations even at the expense of earnings, but at the end of the day, a company needs to know with certainty where they are and where they want to go. Overstock.Com appears to be adrift – with no clear mission.
Founded in 1997, Overstock.com started life as an e-retailer, selling the inventories of failed companies at steep discounts. Initially growing by word of mouth, Overstock eventually developed innovative advertising campaigns, started selling new merchandise as well as “overstock” and competed with the likes of industry behemoth Amazon.
Agressive and Unconventional
Overstock (and specifically CEO Patrick Byrne) spent 2005-2010 mired in a protracted legal battle over aggressive short-selling of its stock and the brokers who were allowing hedge funds to sell it without borrowing. Most of the claims were eventually settled out of court, but it signaled a willingness on Byrne’s part to use non-conventional strategies to defend the business, even well outside of traditional business lines.
Unfortunately, this aggressiveness has not always served the company well and Overstock has been losing share in its core business of selling merchandise online. Outpaced by newer competitors, specifically Wayfair, Byrne announced after a big Q4 2017 loss that the company is “adopting the classic Internet ‘growth strategy’ I previously eschewed: high growth, negative GAAP income, funded out of negative cash conversion cycle.”
Additional content:
Las Vegas Sands (LVS - Free Report) Beats Estimates on Surging Revenues
Las Vegas Sands Corp. just released its latest quarterly financial results, posting adjusted earnings of $1.04 per share and revenues of $3.58 billion.
Currently, LVS is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 4.5% over the past month but fell about 2.0% during regular trading hours today.
The stock is currently flat in after-hours trading shortly after its earnings report was released.
Las Vegas Sands:
Beat earnings estimates. The company posted adjusted earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.86. Investors should note that this consensus projection has trended upward over the duration of the quarter.
Beat revenue estimates. The company saw revenue figures of $3.58 billion, surpassing our consensus estimate of $3.36 billion. Total revenue was up 16.7%.
Net income increased 179.1% to $1.62 billion in the first quarter. Consolidated adjusted property EBITDA increased 30.7% to $1.50 billion. In Macao, adjusted property EBITDA surged 26% to $789 million.
“The power of our unique convention-based Integrated Resort business model was once again on display during the quarter, with record quarterly financial results achieved in Macao, Singapore and Las Vegas. We also continued to invest in growth initiatives in each of our markets while returning excess capital to shareholders,” said CEO Sheldon Adelson.
Las Vegas Sands Corp. is a hotel, gaming, and retail mall company headquartered in Las Vegas, Nevada. The company owns The Venetian Resort Hotel Casino, the Sands Expo and Convention Center, Venetian Interactive, an internet based venture, and Venetian Macao Limited, a developer of multiple casino hotel resort properties in The People's Republic of China's Special Administrative Region of Macao.
Check back later for our full analysis on LVS’ earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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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Archer Daniels Midland, Overstock.Com and Las Vegas Sands highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 26, 2018 – Zacks Equity Research highlights Archer Daniels Midland (ADM - Free Report) as the Bull of the Day, Overstock.Com as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Las Vegas Sands Corp. (LVS - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
Archer Daniels Midland stock has been on a tear since a Q4 earnings beat in February and the good times look to continue as we head into the Q1 earnings report next week. Expected to earn $0.70/share last quarter, ADM surprised the markets, posting $0.82/share – a 17% beat.
In the Q4 report, CEO Juan Luciano commented, “For 2017 as a whole, we grew earnings per share, improved on returns on invested capital and generated positive EVA. Looking ahead, we expect improving results through 2018 as our strategy advances.”
Food Processing Giant
The Illinois-based agricultural giant was founded in 1902 and is a leading provider of food ingredients, serving 170 countries around the world. They are one of the world’s largest agricultural processors and food ingredient providers, with 31,000 employees, 500 crop procurement locations and 270 ingredient manufacturing facilities.
Archer Daniels Midland operates in four main market segments: Agricultural Services, Oilseeds Processing , Corn Processing and Flavors and Special Ingredients. Showing a growth rate of 9% recently (versus an industry average of 4.2%) they continually redesign their core businesses to reflect evolving consumer tastes. They aggressively manage expenses with the current initiative expected to provide $550M in run rate cost savings over the next five years.
They also often make strategic acquisitions world-wide to penetrate previously unserved markets.
Stable Food Stocks
Recently, we discussed the bright prospects for four wholesale/retail food companies in a growing economic environment (read the article here), Archer Daniels Midland is one step up the chain, supplying the raw materials for the finished foods everyone eats every day.
With 5 analyst upgrades for 2018 in the past 60 days versus zero downgrades, Archer Daniels Midland earns a Zacks Rank #1 (Strong Buy).
Bear of the Day:
Intelligent investors need to know that the companies they invest in have a clear mission. It can be acceptable for an aggressively growing firm to invest current revenues in future operations even at the expense of earnings, but at the end of the day, a company needs to know with certainty where they are and where they want to go. Overstock.Com appears to be adrift – with no clear mission.
Founded in 1997, Overstock.com started life as an e-retailer, selling the inventories of failed companies at steep discounts. Initially growing by word of mouth, Overstock eventually developed innovative advertising campaigns, started selling new merchandise as well as “overstock” and competed with the likes of industry behemoth Amazon.
Agressive and Unconventional
Overstock (and specifically CEO Patrick Byrne) spent 2005-2010 mired in a protracted legal battle over aggressive short-selling of its stock and the brokers who were allowing hedge funds to sell it without borrowing. Most of the claims were eventually settled out of court, but it signaled a willingness on Byrne’s part to use non-conventional strategies to defend the business, even well outside of traditional business lines.
Unfortunately, this aggressiveness has not always served the company well and Overstock has been losing share in its core business of selling merchandise online. Outpaced by newer competitors, specifically Wayfair, Byrne announced after a big Q4 2017 loss that the company is “adopting the classic Internet ‘growth strategy’ I previously eschewed: high growth, negative GAAP income, funded out of negative cash conversion cycle.”
Additional content:
Las Vegas Sands (LVS - Free Report) Beats Estimates on Surging Revenues
Las Vegas Sands Corp. just released its latest quarterly financial results, posting adjusted earnings of $1.04 per share and revenues of $3.58 billion.
Currently, LVS is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 4.5% over the past month but fell about 2.0% during regular trading hours today.
The stock is currently flat in after-hours trading shortly after its earnings report was released.
Las Vegas Sands:
Beat earnings estimates. The company posted adjusted earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.86. Investors should note that this consensus projection has trended upward over the duration of the quarter.
Beat revenue estimates. The company saw revenue figures of $3.58 billion, surpassing our consensus estimate of $3.36 billion. Total revenue was up 16.7%.
Net income increased 179.1% to $1.62 billion in the first quarter. Consolidated adjusted property EBITDA increased 30.7% to $1.50 billion. In Macao, adjusted property EBITDA surged 26% to $789 million.
“The power of our unique convention-based Integrated Resort business model was once again on display during the quarter, with record quarterly financial results achieved in Macao, Singapore and Las Vegas. We also continued to invest in growth initiatives in each of our markets while returning excess capital to shareholders,” said CEO Sheldon Adelson.
Las Vegas Sands Corp. is a hotel, gaming, and retail mall company headquartered in Las Vegas, Nevada. The company owns The Venetian Resort Hotel Casino, the Sands Expo and Convention Center, Venetian Interactive, an internet based venture, and Venetian Macao Limited, a developer of multiple casino hotel resort properties in The People's Republic of China's Special Administrative Region of Macao.
Check back later for our full analysis on LVS’ earnings report!
Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>
Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
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Zacks Investment Research
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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.