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Vista Outdoor, Kimberly-Clark and Tesla highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – July 27, 2021 – Zacks Equity Research Shares of Vista Outdoor Inc. (VSTO - Free Report) as the Bull of the Day, Kimberly-Clark Corporation (KMB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla, Inc. (TSLA - Free Report) .
Vista Outdoor is a Zacks Rank #1 (Strong Buy) is a name that often comes up when people start talking about gun stocks. The reality is that there is a lot more to this company than guns. After a minor pullback, I believe those other divisions can help this stock shoot higher. Let's take a deeper look at this stock in this Bull of the Day article.
Description
Vista Outdoor Inc. develops, manufactures and distributes optics, accessories and eyewear. The Company operates in two segments: Shooting Sports and Outdoor Products. Its products consist of binoculars, laser rangefinders, riflescopes, trail cameras, archery accessories, blinds, decoys, game calls, gun care products, mounts, powder, reloading equipment, targets, target systems, safety and protective eyewear, fashion and sports eyewear. The company's product portfolio includes Bushnell, Primos, Bollè, Serengeti, Cèbè, RCBS, Hoppe's, Uncle Mike's, Gold Tip, Weaver and Tasco. Vista Outdoor Inc. is headquartered in Utah.
Earnings History
The first thing I do when I look at stock 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.
For VSTO, I see a great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 61.6%, which means that they are posting results that are above expectations.
There was a monster beat three quarters ago (71.8%) and that skewed the average up quite a bit. Still, the company beats and that helps boost estimates higher and higher.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For VSTO, I see estimates moving higher.
Over the last 60 days, I see several increases.
This quarter has remained at 89 cents.
Next quarter has moved from 86 cents to 91 cents.
The full-year number has increased from $3.38 to $3.53 over the last 60 days.
Next year is at $3.67 and that is up from $2.88 over the same time horizon.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #2 (Buy).
Valuation
The valuation for VSTO is very reasonable. I see an 11x forward earnings multiple and sales growth in the most recent quarter reaching 40%. The price to book multiple of 3.1x is right at the level that keeps the value investor interested. The price to sales multiple of 1x is also pretty low.
KimberlyClark is a Zacks Rank #5 (Strong Sell) and just missed its second earnings report in a row. Earnings estimates are falling, and that has investors concerned. Let's take a look at why that is the case in this Bear of the Day article.
Description
Kimberly-Clark Corporation is principally engaged in the manufacture and marketing of a wide range of consumer products around the world. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high volume public facilities. The company has the following brands: Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Neve, Plenitud, Sweety, Softex, Viva and WypAll. The company was founded in 1928 in Delaware.
Earnings History
The first thing I do when I look at stock 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 KMB, I see one beat and three misses of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #5 (Strong Sell).
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 KMB, I see estimates fluctuating.
This quarter has held still at $1.88.
Next quarter has actually seen some increases.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.
The 2021 consensus number has fallen from $7.41 to $7.19.
The 2022 number has moved from $7.85 to $7.75 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
Additional content:
Tesla Beats in Q2 as Indexes Set New Closing Highs
The Dow, S&P 500 and Nasdaq indexes all set fresh all-time closing highs to start off a new trading week, albeit relatively moderately. A week ago, we were experiencing the worst one-day sell-off in months on fears of the Delta variant of Covid-19 crimping Great Reopening plans. The market has since shed such a gloomy outlook, and followed Friday's strong performance with finishes in positive territory.
Market indexes took different paths to all wind up in generally the same space by Monday's closing bell. After starting off the trading day down around 100 points, the Dow recovered by midday and closed near session highs, +0.24%. The Russell 2000 did the opposite: starting off well into the green, the small-cap index pulled back as the day wore on, closing +0.33%. The S&P 500 matched the Dow's +0.24% while the Nasdaq barely eked out a +0.03% gain.
New Home Sales in June tumbled to a 14-month low — back to the early months of the pandemic era — and missing expectations by a wide margin. A total of 676K new homes were sold last month, well off the expected 795K and below the downwardly revised 724K reported for May. Sales fell -19.4% year over year, the first reported annual decrease of the pandemic era.
It's the third straight month lower, as higher prices and supply constraints created headwinds and more expensive production costs. This has helped keep the number of new home buyers at lower levels than we had been seeing. However, in recent weeks, lumber costs have managed to come back down to earth, so perhaps we'll see a rebound in new home sales in the coming months.
Shares of Tesla initially popped on its Q2 earnings release after Monday's close, as the world's leading electric vehicle maker beat expectations on both top and bottom lines, but after-market trading cooled off rather quickly. Earnings of $1.45 per share easily surpassed the 90 cents expected in the Zacks consensus estimate. Revenues of $11.96 billion were well ahead of the $11.39 billion expected.
This marks Tesla's seventh quarter of the past eight outperforming on the bottom line, including Q2 2020's stellar 545% beat. Prior to this, Tesla had missed in 10 of the previous 15 quarters. Shares of the company hit an all-time high in January, but the stock has underperformed since. Year over year, Tesla is +109%. Shares rose 2% in regular trading ahead of the earnings report.
Operating cash flow minus capex came in at $629 million for the quarter, with cash and cash equivalents amounting to $16.2 billion. This includes a less-than-expected $23 million Bitcoin-related impairment. Stripping out credits, gross margins on auto sales came in at +25.8%. The company had earlier reported Q2 deliveries at just over 200K, up 8% quarter over quarter.
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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Vista Outdoor, Kimberly-Clark and Tesla highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 27, 2021 – Zacks Equity Research Shares of Vista Outdoor Inc. (VSTO - Free Report) as the Bull of the Day, Kimberly-Clark Corporation (KMB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla, Inc. (TSLA - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
Vista Outdoor is a Zacks Rank #1 (Strong Buy) is a name that often comes up when people start talking about gun stocks. The reality is that there is a lot more to this company than guns. After a minor pullback, I believe those other divisions can help this stock shoot higher. Let's take a deeper look at this stock in this Bull of the Day article.
Description
Vista Outdoor Inc. develops, manufactures and distributes optics, accessories and eyewear. The Company operates in two segments: Shooting Sports and Outdoor Products. Its products consist of binoculars, laser rangefinders, riflescopes, trail cameras, archery accessories, blinds, decoys, game calls, gun care products, mounts, powder, reloading equipment, targets, target systems, safety and protective eyewear, fashion and sports eyewear. The company's product portfolio includes Bushnell, Primos, Bollè, Serengeti, Cèbè, RCBS, Hoppe's, Uncle Mike's, Gold Tip, Weaver and Tasco. Vista Outdoor Inc. is headquartered in Utah.
Earnings History
The first thing I do when I look at stock 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.
For VSTO, I see a great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 61.6%, which means that they are posting results that are above expectations.
There was a monster beat three quarters ago (71.8%) and that skewed the average up quite a bit. Still, the company beats and that helps boost estimates higher and higher.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For VSTO, I see estimates moving higher.
Over the last 60 days, I see several increases.
This quarter has remained at 89 cents.
Next quarter has moved from 86 cents to 91 cents.
The full-year number has increased from $3.38 to $3.53 over the last 60 days.
Next year is at $3.67 and that is up from $2.88 over the same time horizon.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #2 (Buy).
Valuation
The valuation for VSTO is very reasonable. I see an 11x forward earnings multiple and sales growth in the most recent quarter reaching 40%. The price to book multiple of 3.1x is right at the level that keeps the value investor interested. The price to sales multiple of 1x is also pretty low.
Bear of the Day:
KimberlyClark is a Zacks Rank #5 (Strong Sell) and just missed its second earnings report in a row. Earnings estimates are falling, and that has investors concerned. Let's take a look at why that is the case in this Bear of the Day article.
Description
Kimberly-Clark Corporation is principally engaged in the manufacture and marketing of a wide range of consumer products around the world. The company sells its products to supermarkets; mass merchandisers; drugstores; warehouse clubs; variety and department stores; retail outlets; manufacturing, lodging, office building, food service, and health care establishments; and high volume public facilities. The company has the following brands: Huggies, Kleenex, Scott, Kotex, Cottonelle, Poise, Depend, Andrex, Pull-Ups, GoodNites, Intimus, Neve, Plenitud, Sweety, Softex, Viva and WypAll. The company was founded in 1928 in Delaware.
Earnings History
The first thing I do when I look at stock 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 KMB, I see one beat and three misses of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #5 (Strong Sell).
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 KMB, I see estimates fluctuating.
This quarter has held still at $1.88.
Next quarter has actually seen some increases.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.
The 2021 consensus number has fallen from $7.41 to $7.19.
The 2022 number has moved from $7.85 to $7.75 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
Additional content:
Tesla Beats in Q2 as Indexes Set New Closing Highs
The Dow, S&P 500 and Nasdaq indexes all set fresh all-time closing highs to start off a new trading week, albeit relatively moderately. A week ago, we were experiencing the worst one-day sell-off in months on fears of the Delta variant of Covid-19 crimping Great Reopening plans. The market has since shed such a gloomy outlook, and followed Friday's strong performance with finishes in positive territory.
Market indexes took different paths to all wind up in generally the same space by Monday's closing bell. After starting off the trading day down around 100 points, the Dow recovered by midday and closed near session highs, +0.24%. The Russell 2000 did the opposite: starting off well into the green, the small-cap index pulled back as the day wore on, closing +0.33%. The S&P 500 matched the Dow's +0.24% while the Nasdaq barely eked out a +0.03% gain.
New Home Sales in June tumbled to a 14-month low — back to the early months of the pandemic era — and missing expectations by a wide margin. A total of 676K new homes were sold last month, well off the expected 795K and below the downwardly revised 724K reported for May. Sales fell -19.4% year over year, the first reported annual decrease of the pandemic era.
It's the third straight month lower, as higher prices and supply constraints created headwinds and more expensive production costs. This has helped keep the number of new home buyers at lower levels than we had been seeing. However, in recent weeks, lumber costs have managed to come back down to earth, so perhaps we'll see a rebound in new home sales in the coming months.
Shares of Tesla initially popped on its Q2 earnings release after Monday's close, as the world's leading electric vehicle maker beat expectations on both top and bottom lines, but after-market trading cooled off rather quickly. Earnings of $1.45 per share easily surpassed the 90 cents expected in the Zacks consensus estimate. Revenues of $11.96 billion were well ahead of the $11.39 billion expected.
This marks Tesla's seventh quarter of the past eight outperforming on the bottom line, including Q2 2020's stellar 545% beat. Prior to this, Tesla had missed in 10 of the previous 15 quarters. Shares of the company hit an all-time high in January, but the stock has underperformed since. Year over year, Tesla is +109%. Shares rose 2% in regular trading ahead of the earnings report.
Operating cash flow minus capex came in at $629 million for the quarter, with cash and cash equivalents amounting to $16.2 billion. This includes a less-than-expected $23 million Bitcoin-related impairment. Stripping out credits, gross margins on auto sales came in at +25.8%. The company had earlier reported Q2 deliveries at just over 200K, up 8% quarter over quarter.
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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.