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Rent-A-Center, Advanced Energy, Target, TJX and Deere highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – November 19, 2018 – Zacks Equity Research highlights Rent-A-Center as the Bull of the Day, Advanced Energy Industries (AEIS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Target Corporation (TGT - Free Report) , The TJX Companies, Inc. (TJX - Free Report) and Deere & Company (DE - Free Report) .
Rent-A-Center is the stock that has been on the Zacks Rank #1 (Strong Buy) list for the longest amount of time. The stock has been a Zacks Rank #1 (Strong Buy) since July 31 and that is saying something. August and September were relatively good months, but staying strong throughout October and midway through November is something else. RCII is finally the Bull of the Day.
Description
A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc., is focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products such as consumer electronics, appliances, computers, furniture, and accessories, under flexible rental purchase agreements with no long-term obligation. Rent-A-Center Franchising International, Inc., a wholly owned subsidiary of the Company, is a national franchiser of the rent-to-own stores operating under the trade names of Rent-A-Center, ColorTyme and RimTyme.
Earnings History
One reason RCII has been a Zacks Rank #1 (Strong Buy) for the last 3 and a half months is that it has posted back to back beats of the Zacks Consensus Estimate.
It helps that these beats came after some pretty big misses. The misses were negative earnings surprises of 200% and 485%.
Earnings Estimates
You would think that being a Zacks Rank #1 (Strong Buy) for all that time would mean you have some pretty strong estimate revisions. RCII has some moves, but they are not as strong as I thought they would be.
The 2018 Zacks Consensus Estimate moved from $0.72 to $0.84 over the last 90 days, which is really good, but not over the top great.
The 2019 Zacks Consensus Estimate has more or less stood still over that same time period. It kicked higher by one cent, and is now at $1.23.
The implied earnings growth is nice to see, but that isn't a big factor in the Zacks Rank.
Valuation
The valuation for RCII is pretty good, with a 17x forward PE and price to book multiple below 3x at 2.7x. Revenue growth is struggling... but with the idea of a higher minimum wage, you have to think that growth is on the way for a play like this.
Advanced Energy Industries is a Zacks Rank #5 (Strong Sell) and is in a sector that has been weak and looks to be getting weaker. Poor earnings reports from a few bigger chip stocks last week make it hard for analysts to get optimistic about raising estimates. That could keep this stock a Zacks Rank #5 (Strong Sell) for a while and that made me select is as the Bear of the Day.
Description
Advanced Energy is a global leader in the development and support of technologies critical to high-technology, high-growth manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.
Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers and end-users around the world.
Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors,
Earnings History
When I see a stock with a Zacks Rank #5 (Strong Sell) I expect to see a lot of earnings misses. With AEIS, I see 3 beats and 1 miss in the last four reports.
That isn't what you should expect to see from a Bear of the Day.
Estimate Revisions
AEIS does not have any positive earnings estimate revisions over the last 60 days. They do, however, have 6 negative revisions for this quarter, next quarter, this year and next year.
The Zacks Consensus Estimate for 2018 has moved from $4.76 to $4.46 over the last 90 days.
An even bigger move can be seen in the 2019 Zacks Consensus Estimate. That number moved from $5.33 to $4.42.
Those movements are the primary reason this stock has slid to a Zacks Rank #5 (Strong Sell) and is now the Bear of the Day.
Additional content:
Upcoming Earnings to Watch: TGT, TJX, DE
Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet.
Investors will now turn to one of the last waves of Q3 earnings reports for clues on what is next for this market, and with a number of trendy high-volume stocks and key consumer bellwethers due to announce their latest results in the coming days, those clues might just reveal themselves quickly.
With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
We have made this task even easier today by selecting a few of next week’s top reports to preview right now. Let’s take a closer look at a few of the earnings announcements due during the week of November 19.
1. Target Corporation
Big-box retail giant Target is scheduled to release its latest quarterly earnings results before the market opens on November 20. Target shares have slumped 10% in the past week as investors shrugged at other retail results, but the stock had booked 30% gains on the year before this volatility took over. Nevertheless, Target looks on track to deliver a solid quarter.
Analysts expect Target to report earnings of $1.11 per share and revenue of $17.81 billion, according to our latest Zacks Consensus Estimates. These results would mark year-over-year growth of 22% and 7%, respectively. Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report.
2. The TJX Companies, Inc.
The TJ Maxx, Marshalls, and HomeGoods parent company is slated to post its latest earnings report before the bell on November 20. Just like Target, TJX shares have slumped in recent sessions. However, the stock has held up quite well through market-wide volatility, and is up more than 36% on the year. The Zacks Rank #2 (Buy) retailer is sitting just below its all-time high.
TJX will hope to prove that its brand of discount retail is still resonating well with shoppers. Three analysts have issued positive estimates for the to-be-reported quarter in the past week alone, which is a bullish trend. Earnings and revenue are now expected to be up 22% and 8%, respectively. TJX has not missed EPS estimates since 2014.
3. Deere & Company
Farm equipment giant Deere & Company will report its most recent financial results before the opening bell on November 21. Deere, like many other equipment makers, has struggled to generate momentum this year. Shares have bounced from their 52-week lows, but the stock is still down about 8% in 2018.
Deere will look to reverse this momentum with a positive report next week. According to our latest consensus estimates, analysts think Deere will deliver earnings of $2.43 per share and revenue of $8.59 billion. These figures would represent year-over-year growth of 55% and 21%, respectively.
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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Rent-A-Center, Advanced Energy, Target, TJX and Deere highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – November 19, 2018 – Zacks Equity Research highlights Rent-A-Center as the Bull of the Day, Advanced Energy Industries (AEIS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Target Corporation (TGT - Free Report) , The TJX Companies, Inc. (TJX - Free Report) and Deere & Company (DE - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Rent-A-Center is the stock that has been on the Zacks Rank #1 (Strong Buy) list for the longest amount of time. The stock has been a Zacks Rank #1 (Strong Buy) since July 31 and that is saying something. August and September were relatively good months, but staying strong throughout October and midway through November is something else. RCII is finally the Bull of the Day.
Description
A rent-to-own industry leader, Plano, Texas-based, Rent-A-Center, Inc., is focused on improving the quality of life for its customers by providing them the opportunity to obtain ownership of high-quality, durable products such as consumer electronics, appliances, computers, furniture, and accessories, under flexible rental purchase agreements with no long-term obligation. Rent-A-Center Franchising International, Inc., a wholly owned subsidiary of the Company, is a national franchiser of the rent-to-own stores operating under the trade names of Rent-A-Center, ColorTyme and RimTyme.
Earnings History
One reason RCII has been a Zacks Rank #1 (Strong Buy) for the last 3 and a half months is that it has posted back to back beats of the Zacks Consensus Estimate.
It helps that these beats came after some pretty big misses. The misses were negative earnings surprises of 200% and 485%.
Earnings Estimates
You would think that being a Zacks Rank #1 (Strong Buy) for all that time would mean you have some pretty strong estimate revisions. RCII has some moves, but they are not as strong as I thought they would be.
The 2018 Zacks Consensus Estimate moved from $0.72 to $0.84 over the last 90 days, which is really good, but not over the top great.
The 2019 Zacks Consensus Estimate has more or less stood still over that same time period. It kicked higher by one cent, and is now at $1.23.
The implied earnings growth is nice to see, but that isn't a big factor in the Zacks Rank.
Valuation
The valuation for RCII is pretty good, with a 17x forward PE and price to book multiple below 3x at 2.7x. Revenue growth is struggling... but with the idea of a higher minimum wage, you have to think that growth is on the way for a play like this.
Bear of the Day:
Advanced Energy Industries is a Zacks Rank #5 (Strong Sell) and is in a sector that has been weak and looks to be getting weaker. Poor earnings reports from a few bigger chip stocks last week make it hard for analysts to get optimistic about raising estimates. That could keep this stock a Zacks Rank #5 (Strong Sell) for a while and that made me select is as the Bear of the Day.
Description
Advanced Energy is a global leader in the development and support of technologies critical to high-technology, high-growth manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications.
Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers and end-users around the world.
Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors,
Earnings History
When I see a stock with a Zacks Rank #5 (Strong Sell) I expect to see a lot of earnings misses. With AEIS, I see 3 beats and 1 miss in the last four reports.
That isn't what you should expect to see from a Bear of the Day.
Estimate Revisions
AEIS does not have any positive earnings estimate revisions over the last 60 days. They do, however, have 6 negative revisions for this quarter, next quarter, this year and next year.
The Zacks Consensus Estimate for 2018 has moved from $4.76 to $4.46 over the last 90 days.
An even bigger move can be seen in the 2019 Zacks Consensus Estimate. That number moved from $5.33 to $4.42.
Those movements are the primary reason this stock has slid to a Zacks Rank #5 (Strong Sell) and is now the Bear of the Day.
Additional content:
Upcoming Earnings to Watch: TGT, TJX, DE
Stocks struggled for direction this week, as renewed Brexit drama, mixed trade war news, and inconsistent retail earnings results reminded investors that volatility is not off the table just yet.
Investors will now turn to one of the last waves of Q3 earnings reports for clues on what is next for this market, and with a number of trendy high-volume stocks and key consumer bellwethers due to announce their latest results in the coming days, those clues might just reveal themselves quickly.
With that said, investors should remember to use the Zacks Earnings Calendar to plan out their schedules for earnings, dividend announcements, and other important financial releases. This handy tool is your perfect one-stop-shop to properly prepare for the market events that will have an impact on your own portfolio.
We have made this task even easier today by selecting a few of next week’s top reports to preview right now. Let’s take a closer look at a few of the earnings announcements due during the week of November 19.
1. Target Corporation
Big-box retail giant Target is scheduled to release its latest quarterly earnings results before the market opens on November 20. Target shares have slumped 10% in the past week as investors shrugged at other retail results, but the stock had booked 30% gains on the year before this volatility took over. Nevertheless, Target looks on track to deliver a solid quarter.
Analysts expect Target to report earnings of $1.11 per share and revenue of $17.81 billion, according to our latest Zacks Consensus Estimates. These results would mark year-over-year growth of 22% and 7%, respectively. Earnings estimates have trended higher recently, earnings the stock a Zacks Rank #2 (Buy) ahead of the report.
2. The TJX Companies, Inc.
The TJ Maxx, Marshalls, and HomeGoods parent company is slated to post its latest earnings report before the bell on November 20. Just like Target, TJX shares have slumped in recent sessions. However, the stock has held up quite well through market-wide volatility, and is up more than 36% on the year. The Zacks Rank #2 (Buy) retailer is sitting just below its all-time high.
TJX will hope to prove that its brand of discount retail is still resonating well with shoppers. Three analysts have issued positive estimates for the to-be-reported quarter in the past week alone, which is a bullish trend. Earnings and revenue are now expected to be up 22% and 8%, respectively. TJX has not missed EPS estimates since 2014.
3. Deere & Company
Farm equipment giant Deere & Company will report its most recent financial results before the opening bell on November 21. Deere, like many other equipment makers, has struggled to generate momentum this year. Shares have bounced from their 52-week lows, but the stock is still down about 8% in 2018.
Deere will look to reverse this momentum with a positive report next week. According to our latest consensus estimates, analysts think Deere will deliver earnings of $2.43 per share and revenue of $8.59 billion. These figures would represent year-over-year growth of 55% and 21%, respectively.
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 >>.
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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.