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Bear Of The Day: International Flavors & Fragrances (IFF)
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International Flavors & Fragrances (IFF - Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today. Does that mean that I think the stock will trade lower? No… not really. The Bear of the Day is all about why the stock has reached the lowest of the Zacks Rank. Let’s take a look a this stock in the same way we would a name that is the bull of the day.
Description
New York-based International Flavors & Fragrances Inc., together with its subsidiaries, engages in the creation and manufacture of fragrance and flavor products in the United States and internationally.
Earnings History
I see a really good earnings history here for IFF. There are three beats and one miss of the Zacks Consensus Estimate over the last four quarters. That is certainly not what I expected to see, and by itself, it isn’t enough to make this stock a Zacks Rank #5 (Strong Sell).
Estimate Revisions
I am seeing some negative earnings estimate revisions of late.
The Zacks Consensus Estimate for the current quarter moved from $1.30 to $1.17 over the 90 days, but that is outside of the window that the Rank looks at. Only estimates movements over the last 60 days will impact the Zacks Rank.
Next quarter saw a move from $1.45 to $1.51, but that was a move from 90 days ago and thus will not impact the Zacks Rank. So a bad move and a good move in estimates, but it is important to know that the annual
The Zacks Rank cares the most about the annual numbers and while 2020 is over, it has yet to be reported. I see the number moving from $5.64 to $5.58. That is not good to see.
The 2021 number has slipped from $6.09 to $6.06 over the last 60 days.
Those are some weak moves lower… and it tells me that most stocks are seeing positive estimate revisions.
Valuation
The valuation for IFF is not crazy. I see a 19x forward earnings multiple … but comes after the company reported a quarter with no growth on an annual basis. The estimates are calling for low single digit growth for 2021.
Price to book at 2x is pretty low… so value investors will still be interested in this stock regardless of where estimates are headed. The 2.4x price to sales multiple is also pretty low.
In the end, this stock doesn’t stink….it might actually smell good in your portfolio when estimates start moving higher.
Chart
International Flavors & Fragrances Inc. Price and Consensus
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Bear Of The Day: International Flavors & Fragrances (IFF)
International Flavors & Fragrances (IFF - Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today. Does that mean that I think the stock will trade lower? No… not really. The Bear of the Day is all about why the stock has reached the lowest of the Zacks Rank. Let’s take a look a this stock in the same way we would a name that is the bull of the day.
Description
New York-based International Flavors & Fragrances Inc., together with its subsidiaries, engages in the creation and manufacture of fragrance and flavor products in the United States and internationally.
Earnings History
I see a really good earnings history here for IFF. There are three beats and one miss of the Zacks Consensus Estimate over the last four quarters. That is certainly not what I expected to see, and by itself, it isn’t enough to make this stock a Zacks Rank #5 (Strong Sell).
Estimate Revisions
I am seeing some negative earnings estimate revisions of late.
The Zacks Consensus Estimate for the current quarter moved from $1.30 to $1.17 over the 90 days, but that is outside of the window that the Rank looks at. Only estimates movements over the last 60 days will impact the Zacks Rank.
Next quarter saw a move from $1.45 to $1.51, but that was a move from 90 days ago and thus will not impact the Zacks Rank. So a bad move and a good move in estimates, but it is important to know that the annual
The Zacks Rank cares the most about the annual numbers and while 2020 is over, it has yet to be reported. I see the number moving from $5.64 to $5.58. That is not good to see.
The 2021 number has slipped from $6.09 to $6.06 over the last 60 days.
Those are some weak moves lower… and it tells me that most stocks are seeing positive estimate revisions.
Valuation
The valuation for IFF is not crazy. I see a 19x forward earnings multiple … but comes after the company reported a quarter with no growth on an annual basis. The estimates are calling for low single digit growth for 2021.
Price to book at 2x is pretty low… so value investors will still be interested in this stock regardless of where estimates are headed. The 2.4x price to sales multiple is also pretty low.
In the end, this stock doesn’t stink….it might actually smell good in your portfolio when estimates start moving higher.
Chart
International Flavors & Fragrances Inc. Price and Consensus
International Flavors & Fragrances Inc. price-consensus-chart | International Flavors & Fragrances Inc. Quote
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>