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.
Hamilton Beach Brands (HBB - Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today. Let's take a look at why this stock has the lowest Zacks Rank and if investors should dig a little deeper into this name.
Description
Hamilton Beach Brands sellssmall electric household and specialty housewares appliances. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. T Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.
Earnings HIstory
When I take a look at the last four reports, I don't like what I see. The company has missed the Zacks Consensus Estimate in each of the last four quarters.
On the bright side, the negative earnings surprise is headed the right way onver the last three quarters.
Those negative surprises went from -333% to -71% to -1.4%. That is a move in the right direction, but those are still pretty big misses.
Recent Earnings
The most recent earnings report came on February 26 and the stock has sold off since that time. There has been a market wide decline on Covid19 fears, but the miss didn't help things either.
I see the company reporting earnings of $1.43 when $1.45 was expected. That two cent miss translated into a negative earnings surprise of 1.4%.
Estimate Movement
As a result of the miss, estimates have moved lower. There really wan't that much movement, but there was enough to move the Zacks Rank to the lowest level. I see the full year 2020 numbers moving from $1.90 to $1.85.
The current quarter and the next quarter are holding still at $0.09 and $0.18 respectively.
Valuation
I see a really good valuation on this stock, with a 6x forward earnings multiple. The price to book of 2.8x is less than the 3x that is a general cut off for value investors as well. Problem here is the sales growth, which was -14% on a year over year basis last quarter and a price to sales multiple of 0.23x which tells me that the market doesn't reward the stock for incremental sales the same as it would if ther price to sales was 1.0x or more.
Net Margin has slipped from 2.78 to 1.8 to -0.53 over the last three quarters, so until that turns around investors might want to look elsewhere for an electronics play.
Chart
Hamilton Beach Brands Holding Company Price and Consensus
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Bear Of The Day: Hamilton Beach Brands (HBB)
Hamilton Beach Brands (HBB - Free Report) is a Zacks Rank #5 (Strong Sell) and it is the Bear of the Day today. Let's take a look at why this stock has the lowest Zacks Rank and if investors should dig a little deeper into this name.
Description
Hamilton Beach Brands sellssmall electric household and specialty housewares appliances. It offers air fryers, blenders, coffee makers, food processors, indoor electric grills, irons, juicers, mixers, slow cookers, toasters, and toaster ovens. T Hamilton Beach Brands Holding Company was founded in 1904 and is headquartered in Glen Allen, Virginia.
Earnings HIstory
When I take a look at the last four reports, I don't like what I see. The company has missed the Zacks Consensus Estimate in each of the last four quarters.
On the bright side, the negative earnings surprise is headed the right way onver the last three quarters.
Those negative surprises went from -333% to -71% to -1.4%. That is a move in the right direction, but those are still pretty big misses.
Recent Earnings
The most recent earnings report came on February 26 and the stock has sold off since that time. There has been a market wide decline on Covid19 fears, but the miss didn't help things either.
I see the company reporting earnings of $1.43 when $1.45 was expected. That two cent miss translated into a negative earnings surprise of 1.4%.
Estimate Movement
As a result of the miss, estimates have moved lower. There really wan't that much movement, but there was enough to move the Zacks Rank to the lowest level. I see the full year 2020 numbers moving from $1.90 to $1.85.
The current quarter and the next quarter are holding still at $0.09 and $0.18 respectively.
Valuation
I see a really good valuation on this stock, with a 6x forward earnings multiple. The price to book of 2.8x is less than the 3x that is a general cut off for value investors as well. Problem here is the sales growth, which was -14% on a year over year basis last quarter and a price to sales multiple of 0.23x which tells me that the market doesn't reward the stock for incremental sales the same as it would if ther price to sales was 1.0x or more.
Net Margin has slipped from 2.78 to 1.8 to -0.53 over the last three quarters, so until that turns around investors might want to look elsewhere for an electronics play.
Chart
Hamilton Beach Brands Holding Company Price and Consensus
Hamilton Beach Brands Holding Company price-consensus-chart | Hamilton Beach Brands Holding Company Quote
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>