We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CarMax, J.M. Smucker, Innovative Industrial Properties and GW Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 23, 2018 – Zacks Equity Research highlights CarMax Inc. (KMX - Free Report) as the Bull of the Day, J.M. Smucker Company (SJM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Innovative Industrial Properties, Inc. (IIPR - Free Report) and GW Pharmaceuticals PLC .
Headquartered in Richmond, Virginia, CarMax Inc. is a retailer that specializes in used cars, selling vehicles through on-site wholesale auctions and offering new vehicles under franchise agreements.
The company also operates car superstores, providing customers with a range of other related products and services like the appraisal and purchase of vehicles directly from consumers, the sale of extended service plans, guaranteed asset protection, and accessories and vehicle repair services.
Shares Pop on Q1 Results
Last month, Zacks Rank #1 (Strong Buy) CarMax reported impressive Q1 numbers across the board. Shares popped nearly 8% as a result, suggesting analysts were impressed by the car retailer’s performance.
Both its top and bottom line easily beat the Zacks Consensus estimate, with earnings of $1.33 per share coming in well above our estimate of $1.21 per share. EPS increased 17.7% year-over-year.
Net sales and operating revenues grew 5.5% year-over-year to $4.79 billion, also beating our consensus estimate. Total used unit sales rose 1.6% while total wholesale unit sales increased almost 10%; however, comparable store used unit sales fell 2.3% because of lower store traffic and tough comparison versus as it “lapped its strongest prior year performance.”
Total gross profit increased 1.9% to $661.3 million and opened three new stores in Q1.
Strong Earnings Outlook
For KMX, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow over 23% for the current quarter, and 5 analysts have revised their estimates higher over the past two months compared to none lower.
Current fiscal year figures are looking pretty great, with 7 upwards estimates in the last 60 days. The Zacks Consensus estimate trend has jumped 26 cents from $4.34 per share to $4.60 per share.
Next year is looking good as well, with earnings expected to grow about 9.8%; the consensus has increased 22 cents in the past two months.
What’s Next for KMX?
Shares of CarMax have gained almost 20% in the past one-year period and are up over 23% in the last three months, no doubt thanks to its Q1 performance. In comparison, the S&P 500 has gained over 13% in the past 12 months.
J.M. Smucker Company is one of the most well-known food companies in the U.S., known for its fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and other natural foods products.
Its family of brands includes Smucker's, Folgers, Dunkin' Donuts, Jif, Crisco, Pillsbury, Eagle Brand, R.W. Knudsen Family, Hungry Jack, Café Bustelo, Café Pilon, truRoots, White Lily and Martha White in the United States, along with Robin Hood, Five Roses, Carnation and Bick's in Canada.
The company is currently sitting at a #5 (Strong Sell) on the Zacks Rank after a disappointing fourth quarter. Can this food giant turn things around?
Q4 Results
In late May, J.M. Smucker reported fourth quarter fiscal 2018 results.
The company reported adjusted earnings of $1.93 per share, falling short of the Zacks Consensus of $2.18 per share. EPS though grew 7% year-over-year.
Net sales of $1.78 billion also missed our consensus estimate and remained basically flat year-over-year. Unfavorable volume/mix hurt revenues in Q4, mainly due to weakness across the oil, peanut butter, and baking categories.
In the company’s U.S. Retail Consumer Foods segment, sales dipped 2%.
But, J.M. Smucker saw nice growth in its U.S. Retail Coffee Market segment; profit here jumped 4%.
As a result, SJM fell over 8% after the report was released.
Earnings Outlook
Estimates took a hit in the days following the report.
For the current quarter, five analysts cut their outlook in the last 60 days, and the consensus has dipped 18 cents from $2.05 to $1.87 per share. But, earnings could see growth of almost 24% for the period.
Nine analysts have revised their estimates downward for the current fiscal year, with growth of only 5.9% versus the last fiscal year. The Zacks Consensus has decreased from $9.18 to $8.43 per share.
Looking at the next fiscal year, the current consensus sits at $8.86 per share, falling nearly one dollar in the past 60 days.
Shares of J.M. Smucker are down roughly 6.2% compared to the S&P 500’s gain of about 13% over the same time period. Year-to-date, SJM stock has dropped almost 12%.
Additional content:
Will Marijuana Stocks Bloom as U.S. Moves Toward Legalization?
Legalization of recreational marijuana is on the verge of becoming a reality in the United States as nine states have already legalized every kind of marijuana use. Now, the state of New Jersey is making efforts to legalize the same. Additionally, the number of Americans supporting the legalization of marijuana usage in both medical and recreational ways has also increased significantly.
Moreover, on Jul 18, key industry players announced a slew of new expansion announcements ranging from acquisitions to partnership plans. Also, the industry witnessed first ever U.S. marijuana IPO from Canadian company Tilray. So clearly, the marijuana industry is expanding in the United States.
61% Americans Want Legalization of Marijuana
After eight states, California is the latest to legalize the usage of marijuana for recreational purpose. Moreover, Washington D.C. (District of Columbia) has also legalized recreational marijuana usage. In New Jersey, member of the General Assembly, Jamel Holley, has focused on the initiative to legalize marijuana for recreational purpose.
According to a survey by Pew Research Center, a nonpartisan American fact tank, in 2017, about 61% Americans supported legalization of marijuana use, for both medical and recreational usage. Key contributors to last year’s vote were millennials (70%), gen xers (66%) and baby boomers (56%). The legalization was also favored by 43% of Republicans, 69% of Democrats and 65% of independents voted in favor of legalization.
Acquisitions, Partnerships Play Pivotal Role
Toronto-based, Emblem Corp announced on Jul 18, said that around $3 million will be invested in Natura Naturals Inc. According to the companies’ three-year agreement, Emblem will acquire 3,000 kilograms of Natura’s marijuana each year.
Nick Dean, President and CEO of Emblem, said that the partnership between the two companies will result to “an immediate increase in product volume” boosting both recreational and medical use.
On the same day, Chicago-based Cresco Labs announced its expansion plans through partnership and acquisition of ownership interest. The company aims to expand its existing operations in the states of Ohio, Illinois and Pennsylvania.
Also, Cresco Labs has decided to open new businesses in states of Nevada, California and Arizona late this year. According to Cresco Labs’ press release, its expansion announcement will make the company “the largest cannabis operator in the U.S. based on potential consumer footprint.”
Tilray IPO Outpaces Expectations
Toronto-based, Tilray has become the first U.S. marijuana company to come up with an IPO. Last week, while talking about its IPO, Tilray said that from the sale of 9 million shares it would generate about $144 million.
However, after the IPO late on Jul 18, the company sold almost 6.254 million shares in the United States for $17 per share and about 2.476 million shares in other countries, including Canada for 22.45 Canadian dollars a share. The total IPO sum was $153 million for Tilray, better than last week’s projection.
Given these improvements, companies related to the cannabis industry like Terra Tech Corp., GrowGeneration Corp., Innovative Industrial Properties, Inc. and GW Pharmaceuticals PLC are expected to gain. Both Innovative Industrial Properties and GW Pharmaceuticals have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Summing Up
Undoubtedly, the marijuana industry is thriving, following the legalization of both medical and now recreational cannabis in nine states in the United States and District of Columbia. Also, people of the United States are in favor of recreational marijuana legalization. Moreover, acquisitions, partnerships and IPOs are also expected to give the cannabis market a significant boost in the days to come.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CarMax, J.M. Smucker, Innovative Industrial Properties and GW Pharmaceuticals highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 23, 2018 – Zacks Equity Research highlights CarMax Inc. (KMX - Free Report) as the Bull of the Day, J.M. Smucker Company (SJM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Innovative Industrial Properties, Inc. (IIPR - Free Report) and GW Pharmaceuticals PLC .
Here is a synopsis of all four stocks:
Bull of the Day:
Headquartered in Richmond, Virginia, CarMax Inc. is a retailer that specializes in used cars, selling vehicles through on-site wholesale auctions and offering new vehicles under franchise agreements.
The company also operates car superstores, providing customers with a range of other related products and services like the appraisal and purchase of vehicles directly from consumers, the sale of extended service plans, guaranteed asset protection, and accessories and vehicle repair services.
Shares Pop on Q1 Results
Last month, Zacks Rank #1 (Strong Buy) CarMax reported impressive Q1 numbers across the board. Shares popped nearly 8% as a result, suggesting analysts were impressed by the car retailer’s performance.
Both its top and bottom line easily beat the Zacks Consensus estimate, with earnings of $1.33 per share coming in well above our estimate of $1.21 per share. EPS increased 17.7% year-over-year.
Net sales and operating revenues grew 5.5% year-over-year to $4.79 billion, also beating our consensus estimate. Total used unit sales rose 1.6% while total wholesale unit sales increased almost 10%; however, comparable store used unit sales fell 2.3% because of lower store traffic and tough comparison versus as it “lapped its strongest prior year performance.”
Total gross profit increased 1.9% to $661.3 million and opened three new stores in Q1.
Strong Earnings Outlook
For KMX, its bottom line is trending upward for the foreseeable future.
Earnings are expected to grow over 23% for the current quarter, and 5 analysts have revised their estimates higher over the past two months compared to none lower.
Current fiscal year figures are looking pretty great, with 7 upwards estimates in the last 60 days. The Zacks Consensus estimate trend has jumped 26 cents from $4.34 per share to $4.60 per share.
Next year is looking good as well, with earnings expected to grow about 9.8%; the consensus has increased 22 cents in the past two months.
What’s Next for KMX?
Shares of CarMax have gained almost 20% in the past one-year period and are up over 23% in the last three months, no doubt thanks to its Q1 performance. In comparison, the S&P 500 has gained over 13% in the past 12 months.
Bear of the Day:
J.M. Smucker Company is one of the most well-known food companies in the U.S., known for its fruit spreads, retail packaged coffee, peanut butter, shortening and oils, ice cream toppings, sweetened condensed milk, and other natural foods products.
Its family of brands includes Smucker's, Folgers, Dunkin' Donuts, Jif, Crisco, Pillsbury, Eagle Brand, R.W. Knudsen Family, Hungry Jack, Café Bustelo, Café Pilon, truRoots, White Lily and Martha White in the United States, along with Robin Hood, Five Roses, Carnation and Bick's in Canada.
The company is currently sitting at a #5 (Strong Sell) on the Zacks Rank after a disappointing fourth quarter. Can this food giant turn things around?
Q4 Results
In late May, J.M. Smucker reported fourth quarter fiscal 2018 results.
The company reported adjusted earnings of $1.93 per share, falling short of the Zacks Consensus of $2.18 per share. EPS though grew 7% year-over-year.
Net sales of $1.78 billion also missed our consensus estimate and remained basically flat year-over-year. Unfavorable volume/mix hurt revenues in Q4, mainly due to weakness across the oil, peanut butter, and baking categories.
In the company’s U.S. Retail Consumer Foods segment, sales dipped 2%.
But, J.M. Smucker saw nice growth in its U.S. Retail Coffee Market segment; profit here jumped 4%.
As a result, SJM fell over 8% after the report was released.
Earnings Outlook
Estimates took a hit in the days following the report.
For the current quarter, five analysts cut their outlook in the last 60 days, and the consensus has dipped 18 cents from $2.05 to $1.87 per share. But, earnings could see growth of almost 24% for the period.
Nine analysts have revised their estimates downward for the current fiscal year, with growth of only 5.9% versus the last fiscal year. The Zacks Consensus has decreased from $9.18 to $8.43 per share.
Looking at the next fiscal year, the current consensus sits at $8.86 per share, falling nearly one dollar in the past 60 days.
Shares of J.M. Smucker are down roughly 6.2% compared to the S&P 500’s gain of about 13% over the same time period. Year-to-date, SJM stock has dropped almost 12%.
Additional content:
Will Marijuana Stocks Bloom as U.S. Moves Toward Legalization?
Legalization of recreational marijuana is on the verge of becoming a reality in the United States as nine states have already legalized every kind of marijuana use. Now, the state of New Jersey is making efforts to legalize the same. Additionally, the number of Americans supporting the legalization of marijuana usage in both medical and recreational ways has also increased significantly.
Moreover, on Jul 18, key industry players announced a slew of new expansion announcements ranging from acquisitions to partnership plans. Also, the industry witnessed first ever U.S. marijuana IPO from Canadian company Tilray. So clearly, the marijuana industry is expanding in the United States.
61% Americans Want Legalization of Marijuana
After eight states, California is the latest to legalize the usage of marijuana for recreational purpose. Moreover, Washington D.C. (District of Columbia) has also legalized recreational marijuana usage. In New Jersey, member of the General Assembly, Jamel Holley, has focused on the initiative to legalize marijuana for recreational purpose.
According to a survey by Pew Research Center, a nonpartisan American fact tank, in 2017, about 61% Americans supported legalization of marijuana use, for both medical and recreational usage. Key contributors to last year’s vote were millennials (70%), gen xers (66%) and baby boomers (56%). The legalization was also favored by 43% of Republicans, 69% of Democrats and 65% of independents voted in favor of legalization.
Acquisitions, Partnerships Play Pivotal Role
Toronto-based, Emblem Corp announced on Jul 18, said that around $3 million will be invested in Natura Naturals Inc. According to the companies’ three-year agreement, Emblem will acquire 3,000 kilograms of Natura’s marijuana each year.
Nick Dean, President and CEO of Emblem, said that the partnership between the two companies will result to “an immediate increase in product volume” boosting both recreational and medical use.
On the same day, Chicago-based Cresco Labs announced its expansion plans through partnership and acquisition of ownership interest. The company aims to expand its existing operations in the states of Ohio, Illinois and Pennsylvania.
Also, Cresco Labs has decided to open new businesses in states of Nevada, California and Arizona late this year. According to Cresco Labs’ press release, its expansion announcement will make the company “the largest cannabis operator in the U.S. based on potential consumer footprint.”
Tilray IPO Outpaces Expectations
Toronto-based, Tilray has become the first U.S. marijuana company to come up with an IPO. Last week, while talking about its IPO, Tilray said that from the sale of 9 million shares it would generate about $144 million.
However, after the IPO late on Jul 18, the company sold almost 6.254 million shares in the United States for $17 per share and about 2.476 million shares in other countries, including Canada for 22.45 Canadian dollars a share. The total IPO sum was $153 million for Tilray, better than last week’s projection.
Given these improvements, companies related to the cannabis industry like Terra Tech Corp., GrowGeneration Corp., Innovative Industrial Properties, Inc. and GW Pharmaceuticals PLC are expected to gain. Both Innovative Industrial Properties and GW Pharmaceuticals have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Summing Up
Undoubtedly, the marijuana industry is thriving, following the legalization of both medical and now recreational cannabis in nine states in the United States and District of Columbia. Also, people of the United States are in favor of recreational marijuana legalization. Moreover, acquisitions, partnerships and IPOs are also expected to give the cannabis market a significant boost in the days to come.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
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.