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Full House Resorts, VMWare, NIO and CrowdStrike highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – February 22, 2021 – Zacks Equity Research Shares of Full House Resorts, Inc. (FLL - Free Report) as the Bull of the Day, VMWare, Inc. as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NIO Inc. (NIO - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) .
Full House Resorts is a Zacks Rank #2 (Buy) and it is the Bull of the Day today. This is a casino name that might have seen a slow down in business over the last week or so as cold weather and heavy snows blanketed most of the country. One thing I have learned over my years on the planet is that snow melts and weather changes. If investors were dumping this stock for those reasons, then I want to put out an idea as to why its worth a deeper look on the long side.
Description
Full House Resorts, Inc. owns casinos, and related hospitality and entertainment facilities in such as Silver Slipper Casino and Hotel in Hancock County, Mississippi. It also owns and operates the Bronco Billy's Casino and Hotel in Cripple Creek, Colorado as well as Rising Star Casino Resort in Rising Sun, Indiana, and Stockman's Casino that is located in Fallon, Nevada. Full House Resorts, Inc. was founded in 1987 and is headquartered in Las Vegas, Nevada.
Earnings History
Anytime I look at a company I look at the earnings history first. Does management have the capability of guiding Wall Street to a beatable level? The answer for FLL is yes.
Over the last four quarters I see two beats… and they are not small beats, these are big beats. There is one quarter where the was no estimate in the Zacks System and also one quarter with a miss.
The average positive earnings surprise over the last four quarters is 464%, and that is just great.
Earnings Estimate Revisions
The key to the Zacks Rank is move in earnings estimates. Positive estimate revisions send stocks to a higher Zacks Rank and vice versa. If you are a fundamental investor, you know that higher earnings will lead to higher stock prices.
The estimate for FLL are headed higher.
The Zacks Consensus Estimate for this quarter has moved from 6 cents to 14 cents over the last 30 days.
The estimate for the next quarter has moved form 11 cents to 17 cents over the same time horizon.
The full year 2020 number has yet to be reported, and investors are focusing more on the next year’s numbers.
I see the 2021 number moving from 12 cents to 44 cents over the last 30 days. That sort of move helps push the stock to a Zacks Rank #2 (Buy).
Valuation
The valuation for FLL is pretty good. I see a 16x forward earnings multiple and a 3.8x book multiple. The company posted a contraction in revenue in the most recent quarter but is expected to show topline growth of 35% in 2021. A low priced stock with a good valuation and a solid growth story is something that a lot of investors can get behind.
VMWare 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 fell to the lowest Zacks Rank and if it is still something that you should look at. VMW reports earnings again on February 25, so let take a look at the earnings history.
Earnings History
Anytime I look at a company I look at the earnings history first. Does management have the capability of guiding Wall Street to a beatable level? The answer for VMW is yes.
Over the last four quarters I see three beats… and they are good sized beats.
The average positive earnings surprise over the last four quarters is 15%, and that is a good thing, not a bad thing… so why is this the lowest Zacks Rank?
Earnings Estimate Revisions
The key to the Zacks Rank is move in earnings estimates. Positive estimate revisions send stocks to a higher Zacks Rank and vice versa. If you are a fundamental investor, you know that higher earnings will lead to higher stock prices.
The estimates for VMW are headed lower.
This isn’t holistically true, as the 2021 number have moved from $6.64 to $7.05, but next year has seen estimates move from $7.21 to $7.00.
The fact that this has made VMW a Zacks Rank #5 (Strong Sell) tells me that estimates are moving up for most stocks.
Valuation
The valuation for VMW is a ok with the forward PE of 20x just a little over the market multiple. There was 16% topline growth in the most recent quarter. The forecast for next fiscal year is topline growth of 8%, but don’t be surprised if that number doesn’t increase soon.
I see a 7x price to book, but that is to be expected from an asset slim name like this. Price to sales at 5x is actually somewhat low… and that makes me want to dive in deeper into this name.
Additional content:
2 Top Tech Stocks to Buy Now for Big Growth
The S&P 500 and the tech-heavy Nasdaq slipped during the week of February 15, after they closed at new records last week. Despite the drop in some of the big tech names such as Apple, Facebook, Microsoft, Zoom Video and countless others this week, the market fundamentals remain relatively strong.
Ebbs and flows, as well as pullbacks and corrections are healthy aspects of the market. And they need not be viewed as anything but normal occurrences, especially as strong earnings results continue to pour in. Better yet, the outlook for the first quarter and the rest of 2021 has improved significantly.
Vaccine distribution will hopefully help the economy roar back by the summer and lift some of the hardest-hit areas of the economy. Meanwhile, Wall Street is banking on more spending under the Biden administration and the Fed remains firmly committed to keeping interest rates low.
All of these factors set up a bullish outlook for 2021. But instead of focusing on companies that need a vaccine to really grow, let's look at two tech stocks that have posted big sales growth during the pandemic and are ready to expand for years within futuristic industries...
NIO
Every major automaker, from Ford to Volvo, is racing to roll out more electric vehicles as they try to catch Tesla. Luckily for investors, the EV market is far from a zero-sum game and newcomers continue to enter the space. Chinese EV maker NIO is a rising star in the booming market, as its sales continue to grow. The company is also focused on autonomous driving tech, as well as batteries, which are the lifeblood of the industry.
NIO sells multiple models that are somewhat in-line with Tesla, from smaller SUVs to sedans. The company said in early January that it delivered 17,353 vehicles in the fourth quarter, which marked a 110% jump.
Overall, NIO's full-year deliveries surged 113% to nearly 44,000 vehicles in 2020. And its January 2021 figures were even more impressive, with deliveries up 350% from the year-ago period to push its overall cumulative deliveries to 83K.
With this in mind, Zacks estimates call for NIO's FY20 revenue to jump 120% to $2.49 billion, with FY21 projected to come in another 97% higher to reach $4.89 billion. The Chinese EV company is also expected to significantly shrink its adjusted losses during this stretch.
NIO has topped our EPS estimates in the trailing two periods and its positive earnings revisions help it land a Zacks Rank #2 (Buy) heading into the release of its Q4 results on March 1.
NIO, which rocks an "A" grade for Growth in our Style Scores system, has seen its stock skyrocket over 1,000% in the last year and 300% in the past six months. Luckily for investors who missed the ride, NIO has cooled down, up only 12% in the last three months.
At roughly $55 per share, it's down about 13% from its late January records. The recent downturn has seen it fall from overbought in terms of the Relative Strength Index to around 45—an RSI above 70 is often regarded as overbought, with any number below 30 considered oversold.
NIO's recent price performance could give it room to run if it's able to impress Wall Street. And the stock jumped over 1% through morning trading Friday, as it bounces off its 50-day moving average. NIO shares also trade at a discount compared to other high-flyers at 12.7X forward sales, which marks a discount against Tesla's 15.5X and comes in 25% below its own six-months highs.
Three out of the nine brokerage recommendations that Zacks has for NIO come in at a "Strong Buy," with none below a "Hold." NIO might be worth buying as a long-term play that's far less expensive than Tesla ($784 a share), in a world where EVs already accounted for over 30% of Volvo's new car sales in Europe in 2020. And let's remember that China is one of the world's largest EV markets.
CrowdStrike
CrowdStrike is a cloud-focused cybersecurity firm that utilizes machine learning and AI to protect endpoints and cloud workloads. This is crucial in the cloud age that's full of rapidly expanding endpoints, which include laptops, desktops, smartphones, IoT devices, and more.
Remote work and schooling pushed this area of the ever-growing cybersecurity space to the forefront, but it was already booming. More importantly, as devices proliferate and our digitally-connected world grows more complex, it becomes more vulnerable.
CrowdStrike on February announced plans to bolster its offerings through the acquisition of Humio for $400 million—expected to close in the first quarter. Humio provides high-performance cloud log management and observability technology. The deal is set to "further expand its eXtended Detection and Response (XDR) capabilities by ingesting and correlating data from any log, application or feed to deliver actionable insights and real-time protection."
CrowdStrike, which went public in the summer of 2019, has soared nearly 280% in the past 12 months. More recently, the stock is up 65% in the last six months, and it already bounced back to new records—which it hit earlier in the week—after it slipped in mid-January.
The stock is firmly a growth play at the moment, trading at 42.7X forward sales, which puts it right in line with e-commerce giant Shopify. Despite its run, the stock is not currently considered overbought, with an RSI of 64.
CRWD's positive earnings revisions help it grab a Zacks Rank #2 (Buy) at the moment, with it set to release its fourth quarter fiscal 2021 results on March 16. Meanwhile, 14 of the 19 brokerage ratings Zacks has for CRWD come in at a "Strong Buy," with none lower than a "Hold."
Looking back, the company crushed our Q3 estimates in December, with sales up 86%. CrowdStrike also lifted its guidance at the time. Zacks estimates currently call for it to swing from an adjusted loss of -$0.02 a share in the year-ago period to +$0.09 in the fourth quarter on 65% stronger sales.
In total, the cybersecurity firm is projected to soar from a loss of -$0.42 a share to +$0.23 in fiscal 2021. Plus, CRWD's FY22 EPS figure is projected to climb another 70% higher, all the way to $0.39 a share. Meanwhile, its revenue is projected to jump 79% to hit $861 million in FY21 and then climb another 42% to $1.22 billion in FY22.
CrowdStrike's expected growth would come on top of FY20's 93% sales expansion. The stock has clearly already gone on an impressive run. But it is poised to continue to grow in a world where everything is connected and data is endless. Therefore, cybersecurity firms such as CrowdStrike might make for strong long-term growth plays.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for "stay at home" technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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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Full House Resorts, VMWare, NIO and CrowdStrike highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 22, 2021 – Zacks Equity Research Shares of Full House Resorts, Inc. (FLL - Free Report) as the Bull of the Day, VMWare, Inc. as the Bear of the Day. In addition, Zacks Equity Research provides analysis on NIO Inc. (NIO - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
Full House Resorts is a Zacks Rank #2 (Buy) and it is the Bull of the Day today. This is a casino name that might have seen a slow down in business over the last week or so as cold weather and heavy snows blanketed most of the country. One thing I have learned over my years on the planet is that snow melts and weather changes. If investors were dumping this stock for those reasons, then I want to put out an idea as to why its worth a deeper look on the long side.
Description
Full House Resorts, Inc. owns casinos, and related hospitality and entertainment facilities in such as Silver Slipper Casino and Hotel in Hancock County, Mississippi. It also owns and operates the Bronco Billy's Casino and Hotel in Cripple Creek, Colorado as well as Rising Star Casino Resort in Rising Sun, Indiana, and Stockman's Casino that is located in Fallon, Nevada. Full House Resorts, Inc. was founded in 1987 and is headquartered in Las Vegas, Nevada.
Earnings History
Anytime I look at a company I look at the earnings history first. Does management have the capability of guiding Wall Street to a beatable level? The answer for FLL is yes.
Over the last four quarters I see two beats… and they are not small beats, these are big beats. There is one quarter where the was no estimate in the Zacks System and also one quarter with a miss.
The average positive earnings surprise over the last four quarters is 464%, and that is just great.
Earnings Estimate Revisions
The key to the Zacks Rank is move in earnings estimates. Positive estimate revisions send stocks to a higher Zacks Rank and vice versa. If you are a fundamental investor, you know that higher earnings will lead to higher stock prices.
The estimate for FLL are headed higher.
The Zacks Consensus Estimate for this quarter has moved from 6 cents to 14 cents over the last 30 days.
The estimate for the next quarter has moved form 11 cents to 17 cents over the same time horizon.
The full year 2020 number has yet to be reported, and investors are focusing more on the next year’s numbers.
I see the 2021 number moving from 12 cents to 44 cents over the last 30 days. That sort of move helps push the stock to a Zacks Rank #2 (Buy).
Valuation
The valuation for FLL is pretty good. I see a 16x forward earnings multiple and a 3.8x book multiple. The company posted a contraction in revenue in the most recent quarter but is expected to show topline growth of 35% in 2021. A low priced stock with a good valuation and a solid growth story is something that a lot of investors can get behind.
Bear of the Day:
VMWare 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 fell to the lowest Zacks Rank and if it is still something that you should look at. VMW reports earnings again on February 25, so let take a look at the earnings history.
Earnings History
Anytime I look at a company I look at the earnings history first. Does management have the capability of guiding Wall Street to a beatable level? The answer for VMW is yes.
Over the last four quarters I see three beats… and they are good sized beats.
The average positive earnings surprise over the last four quarters is 15%, and that is a good thing, not a bad thing… so why is this the lowest Zacks Rank?
Earnings Estimate Revisions
The key to the Zacks Rank is move in earnings estimates. Positive estimate revisions send stocks to a higher Zacks Rank and vice versa. If you are a fundamental investor, you know that higher earnings will lead to higher stock prices.
The estimates for VMW are headed lower.
This isn’t holistically true, as the 2021 number have moved from $6.64 to $7.05, but next year has seen estimates move from $7.21 to $7.00.
The fact that this has made VMW a Zacks Rank #5 (Strong Sell) tells me that estimates are moving up for most stocks.
Valuation
The valuation for VMW is a ok with the forward PE of 20x just a little over the market multiple. There was 16% topline growth in the most recent quarter. The forecast for next fiscal year is topline growth of 8%, but don’t be surprised if that number doesn’t increase soon.
I see a 7x price to book, but that is to be expected from an asset slim name like this. Price to sales at 5x is actually somewhat low… and that makes me want to dive in deeper into this name.
Additional content:
2 Top Tech Stocks to Buy Now for Big Growth
The S&P 500 and the tech-heavy Nasdaq slipped during the week of February 15, after they closed at new records last week. Despite the drop in some of the big tech names such as Apple, Facebook, Microsoft, Zoom Video and countless others this week, the market fundamentals remain relatively strong.
Ebbs and flows, as well as pullbacks and corrections are healthy aspects of the market. And they need not be viewed as anything but normal occurrences, especially as strong earnings results continue to pour in. Better yet, the outlook for the first quarter and the rest of 2021 has improved significantly.
Vaccine distribution will hopefully help the economy roar back by the summer and lift some of the hardest-hit areas of the economy. Meanwhile, Wall Street is banking on more spending under the Biden administration and the Fed remains firmly committed to keeping interest rates low.
All of these factors set up a bullish outlook for 2021. But instead of focusing on companies that need a vaccine to really grow, let's look at two tech stocks that have posted big sales growth during the pandemic and are ready to expand for years within futuristic industries...
NIO
Every major automaker, from Ford to Volvo, is racing to roll out more electric vehicles as they try to catch Tesla. Luckily for investors, the EV market is far from a zero-sum game and newcomers continue to enter the space. Chinese EV maker NIO is a rising star in the booming market, as its sales continue to grow. The company is also focused on autonomous driving tech, as well as batteries, which are the lifeblood of the industry.
NIO sells multiple models that are somewhat in-line with Tesla, from smaller SUVs to sedans. The company said in early January that it delivered 17,353 vehicles in the fourth quarter, which marked a 110% jump.
Overall, NIO's full-year deliveries surged 113% to nearly 44,000 vehicles in 2020. And its January 2021 figures were even more impressive, with deliveries up 350% from the year-ago period to push its overall cumulative deliveries to 83K.
With this in mind, Zacks estimates call for NIO's FY20 revenue to jump 120% to $2.49 billion, with FY21 projected to come in another 97% higher to reach $4.89 billion. The Chinese EV company is also expected to significantly shrink its adjusted losses during this stretch.
NIO has topped our EPS estimates in the trailing two periods and its positive earnings revisions help it land a Zacks Rank #2 (Buy) heading into the release of its Q4 results on March 1.
NIO, which rocks an "A" grade for Growth in our Style Scores system, has seen its stock skyrocket over 1,000% in the last year and 300% in the past six months. Luckily for investors who missed the ride, NIO has cooled down, up only 12% in the last three months.
At roughly $55 per share, it's down about 13% from its late January records. The recent downturn has seen it fall from overbought in terms of the Relative Strength Index to around 45—an RSI above 70 is often regarded as overbought, with any number below 30 considered oversold.
NIO's recent price performance could give it room to run if it's able to impress Wall Street. And the stock jumped over 1% through morning trading Friday, as it bounces off its 50-day moving average. NIO shares also trade at a discount compared to other high-flyers at 12.7X forward sales, which marks a discount against Tesla's 15.5X and comes in 25% below its own six-months highs.
Three out of the nine brokerage recommendations that Zacks has for NIO come in at a "Strong Buy," with none below a "Hold." NIO might be worth buying as a long-term play that's far less expensive than Tesla ($784 a share), in a world where EVs already accounted for over 30% of Volvo's new car sales in Europe in 2020. And let's remember that China is one of the world's largest EV markets.
CrowdStrike
CrowdStrike is a cloud-focused cybersecurity firm that utilizes machine learning and AI to protect endpoints and cloud workloads. This is crucial in the cloud age that's full of rapidly expanding endpoints, which include laptops, desktops, smartphones, IoT devices, and more.
Remote work and schooling pushed this area of the ever-growing cybersecurity space to the forefront, but it was already booming. More importantly, as devices proliferate and our digitally-connected world grows more complex, it becomes more vulnerable.
CrowdStrike on February announced plans to bolster its offerings through the acquisition of Humio for $400 million—expected to close in the first quarter. Humio provides high-performance cloud log management and observability technology. The deal is set to "further expand its eXtended Detection and Response (XDR) capabilities by ingesting and correlating data from any log, application or feed to deliver actionable insights and real-time protection."
CrowdStrike, which went public in the summer of 2019, has soared nearly 280% in the past 12 months. More recently, the stock is up 65% in the last six months, and it already bounced back to new records—which it hit earlier in the week—after it slipped in mid-January.
The stock is firmly a growth play at the moment, trading at 42.7X forward sales, which puts it right in line with e-commerce giant Shopify. Despite its run, the stock is not currently considered overbought, with an RSI of 64.
CRWD's positive earnings revisions help it grab a Zacks Rank #2 (Buy) at the moment, with it set to release its fourth quarter fiscal 2021 results on March 16. Meanwhile, 14 of the 19 brokerage ratings Zacks has for CRWD come in at a "Strong Buy," with none lower than a "Hold."
Looking back, the company crushed our Q3 estimates in December, with sales up 86%. CrowdStrike also lifted its guidance at the time. Zacks estimates currently call for it to swing from an adjusted loss of -$0.02 a share in the year-ago period to +$0.09 in the fourth quarter on 65% stronger sales.
In total, the cybersecurity firm is projected to soar from a loss of -$0.42 a share to +$0.23 in fiscal 2021. Plus, CRWD's FY22 EPS figure is projected to climb another 70% higher, all the way to $0.39 a share. Meanwhile, its revenue is projected to jump 79% to hit $861 million in FY21 and then climb another 42% to $1.22 billion in FY22.
CrowdStrike's expected growth would come on top of FY20's 93% sales expansion. The stock has clearly already gone on an impressive run. But it is poised to continue to grow in a world where everything is connected and data is endless. Therefore, cybersecurity firms such as CrowdStrike might make for strong long-term growth plays.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for "stay at home" technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>
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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.