For Immediate Release
Chicago, IL – December 15, 2020 –
Zacks Equity Research Shares of D. R. Horton ( DHI Quick Quote DHI - Free Report) as the Bull of the Day, Express, Inc. ( EXPR Quick Quote EXPR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla, Inc. ( TSLA Quick Quote TSLA - Free Report) , General Motors Company ( GM Quick Quote GM - Free Report) and Toyota Motor Corporation ( TM Quick Quote TM - Free Report) . Here is a synopsis of all five stocks:
The new Stay Home economy is about as disruptive as it gets. From a macroeconomic standpoint. The virus has changed everything. Businesses which were seen as “No brainers” with incredible cash flow are now covering. COVID has rearranged everything from the way we get work done to the way we raise our children. Today’s Bull of the Day is a company which has benefited from this paradigm shift, but in the most peculiar ways.
I’m talking about Zacks Rank #1 (Strong Buy)
D. R. Horton. D.R. Horton, Inc. operates as a homebuilding company in East, Midwest, Southeast, South Central, Southwest, and West regions in the United States. It engages in the acquisition and development of land; and construction and sale of homes in 29 states and 88 markets under the names of D.R. Horton, America's Builder, Express Homes, Emerald Homes, and Freedom Homes.
Amid higher taxes, the post-COVID shutdown, and a litany of other reasons, people have been moving. Whether it’s for the weather, or merely to get out of Dodge so-to-speak, folks have been migrating, changing the landscape of America. D.R. Horton is a home builder which seeks to make that dream a reality.
This Zacks Rank #1 (Strong Buy) also enjoys a Zacks Value Style Score of B, Growth of B, Momentum of A to help it round out with a VGM Composite Score of A. The Building Products – Home Builders industry ranks in the Top 13% of our Zacks Industry Rank. Over the last sixty days, 19 analysts have increased their earnings estimates for the current year, while 8 have done so for next year. The bullish sentiment has pushed up our Zacks Consensus Estimates for the current year from $6.57 to $7.92 while next year’s number is up from $7.22 to $8.99.
In case you were wondering, retail is not doing all that great. I know, it must be a shocker. In the post-COVID world, shutdowns still remain a major concern. What is more concerning is the death of the American mall. Already struggling retail outlets were dealt major blows. If you aren’t selling through omnichannel you are plain out of luck. One retailer trying to fight through these desperate times is Zacks Rank #5 (Strong Sell) and my Bear of the Day,
Express, Inc. operates as an apparel and accessories retailer. It offers apparel and accessories for women and men for various occasions. The company sells its products through its e-commerce Website,
express.com; and mobile app, as well as franchisees Express locations in Latin America. As of October 31, 2020, it operated 592 stores comprising 378 retail stores and 214 factory outlet stores in the United States and Puerto Rico, as well as an online store.
Express is currently a Zacks Rank #5 (Strong Sell). While the Retail – Apparel and Shoes industry does rank in the Top 40% of our Zacks Industry rank, negative earnings estimate revisions coming from analysts is the culprit. Over the last thirty days, three analysts have cut their earnings estimates for the current year, while two have done so for next year. The negative revisions have made a very bearish impact on our Zacks Consensus Estimates. Current year consensus has not dropped from a $3.72 loss in the current year, down to a $4.88 loss. Next year’s number is off from a 13-cent loss to at 33-cent loss.
Additional content: 3 Electric Vehicle Stocks That Could Keep Gaining Into 2021
Electric vehicle (EV) stocks have already had a stupendous run so far this year. In fact, exclusive EV players mostly outperformed internal combustion engine (ICE) companies. This is primarily because worldwide, there is tremendous pressure on auto manufacturers to trim CO2 emission. And this shift from ICE to EV is likely to continue next year and beyond, which should encourage investors to keep an eye on solid EV stocks that have more room to run in the New Year.
To put things into perspective, EV sales across the globe are projected to grow 50% or more in 2021, compared to ICE’s expected sales growth of a meager 2% to 5% as predicted by analysts at Morgan Stanley, quoted in a
MarketWatch article. EV penetration globally has also been projected at 4%, increasing to 31% by 2030.
The MarketWatch article further stated that Adam Jonas, analyst at Morgan Stanley, said that the New Year “is shaping up to be a critical year for EV adoption and (internal combustion engine) de-adoption that will dictate the pace of multiple expansion, contraction, consolidation and proliferation among the stocks.”
But it’s just not next year, EVs are expected to account for a third of the global auto market by 2025, and more than 50% by 2030, easily exceeding sales of ICEs, according to a study by the
Boston Consulting Group.
The Boston Consulting Group also confirmed that tighter regulations on tailpipe emissions that do result in grave environmental issues will compel auto manufacturers to produce EVs to fulfil emission requirements. At the same time, battery prices are falling with extended driving range owing to these batteries. This should further encourage consumers to opt for EVs.
Further citing a
CleanTechnica article, in the United States, EV sales are expected to jump 70% year over year next year. Similarly, a substantial increase in year-over-year sales of EVs is anticipated in Europe. Such EV sales include both plug-in hybrids and fully electric vehicles.
Of course, EV sales are expected to improve in the New Year on an improved economy and comparatively low interest rates. No doubt, a breakthrough in the coronavirus vaccine front leading to opening up of the economy along with low auto loan interest rates are surely expected to provide enough self-assurance to consumers to take the initiative to buy a new car.
But sales of EVs are not just focused on the United States and Europe. Even China is expected to witness a surge in new energy vehicles (NEV) or so-called plug-in electric vehicles in 2021. As mentioned in a
NIKKEI Asia article, the China Association of Automobile Manufacturers recently said that sales of NEVs in China are projected to climb 40% to 1.8 million units next year. It’s worth pointing out that sales of NEVs are expected to improve in the near term in China, thanks to Tesla’s expansion of local production. 3 Electric Vehicle Stocks to Watch in 2021
With EV sales expected to surge in the New Year, electric car manufacturers are invariably poised to gain. Improved sales will in the end lead to greater profits and boost the company’s share price. With all that in mind, here’re the three EV stocks that should be on your radar in 2021.
Tesla should always be at the top of the list of EV stocks. After all, the company is helping the world rely much more on sustainable energy by selling electric cars. Tesla, in fact, has the largest market share in the electric car segment in the United States. The EV market in the US is largely dominated by Tesla’s Model 3.
Tesla has made sure that electric cars are now available for the masses and not just the affluent. The EV maker had already seen its shares jump a whopping 629% in the year-to-date period, easily outpacing the Zacks Automotive – Domestic industry’s increase of 224.7%. What’s more, Tesla’s expected earnings growth for the next year is still a healthy 60.1%. The Zacks Consensus Estimate for its next year earnings also increased 16.7% over the past 60 days. Tesla currently has a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank stocks here .
Another big player in the EV market is
General Motors. The company is looking to catch up with Tesla in the EV segment and is expected to increase its production of electric cars as soon as possible.
Across the globe, General Motors now aims to launch more than 30 new electric vehicles by 2025, and the company’s CEO Mary Barra said that the company is willing to spend a staggering $27 billion on such vehicles, as quoted in
Shares of the auto manufacturer have advanced 32.7% over the past three-month period, outperforming the Zacks Automotive – Domestic industry’s rise of 31.3%. Additionally, the company’s expected earnings growth rate for the next year is 26.1%. The Zacks Consensus Estimate for its next-year earnings has also moved up 26.4% over the past 60 days. General Motors presently has a Zacks Rank #1 (Strong Buy).
Toyota Motor is joining the EV market and has plans to unveil an electric SUV in Europe in the near term. Toyota is aiming to launch its EV to meet customers’ needs. Shares of the Japanese automaker have risen 4.8% over the past month versus the Zacks Automotive – Foreign industry’s increase of 1.8%.
The company’s expected earnings growth rate for the next year is 32.3%. The Zacks Consensus Estimate for its next-year earnings has also climbed 15.8% over the past 60 days. Toyota Motor currently has a Zacks Rank #1.
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