Back to top

Image: Shutterstock

Bear Of The Day: Diebold Nixdorf, Incorporated (DBD)

Read MoreHide Full Article

Diebold Nixdorf, Incorporated (DBD - Free Report) is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings beat.  The company is best known as the maker of ATM’s but has diversified into cash recyclers and dispensers, deposit terminals and other kiosk technologies. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.


Diebold Nixdorf Incorporated engages in the automating, digitizing and transforming the way people bank and shop. Its operating segments include Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools and kiosk technologies, as well as physical security solutions and front-end applications for consumer connection points and back-end platforms. Diebold Nixdorf Incorporated is based in Hudson, Ohio.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

In the case of Diebold Nixdorf, I see only one quarter with a Zacks Consensus Estimate.  That quarter saw the company post $3.02 when the estimate was calling for $1.39 for a beat of $1.63 or 117%.  This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.

The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.

Earnings Estimates

The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower.  For DBD I see annual estimates moving lower of late.

The current year (2024) consensus number moved lower from $4.80 to $3.94 over the last 60 days. 

The next year moved from $4.08 to $4.73 over the last 60 days.

Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).

It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions.  That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Diebold Nixdorf, Incorporated (DBD) - free report >>

Published in