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F5 Networks, Cardlytics, Sunrun, Canadian Solar and ReneSola highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – August 30, 2021 – Zacks Equity Research Shares of F5 Networks, Inc. (FFIV - Free Report) as the Bull of the Day, Cardlytics, Inc. (CDLX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Sunrun Inc. (RUN - Free Report) , Canadian Solar Inc. (CSIQ - Free Report) and ReneSola Ltd (SOL - Free Report) .
F5 Networks is a Zacks Rank #1 (Strong Buy) that provides multi-cloud application services for the security, performance, and availability of network applications, servers, and storage systems.
The stock has been trading sideways all year, but after an earnings beat, estimates are headed higher. Bulls are now looking for a run to all-time highs and a breakout into the end of the year.
About the Company
F5 Networks focus is multi-cloud applications that enable customers to address performance, security, automation and insight. The company caters to banking & financial services, federal government Agencies, and service providers. F5 also provides a range of professional services, including consulting, training, installation, maintenance, and other technical support services.
The company has over 6,000 full time employees and is headquartered in Seattle, Washington. Founded in 1996, F5 has partnerships with large cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
F5 Networks has a market cap of $12 Billion and has Zacks Style Scores of “F” in Growth and “D” in Value. The stock has a Forward PE is 20 and pays no dividend.
Q3 Earnings
F5 reported back in July, seeing a 12% beat on EPS. Revenues came in above expectations at $652 million v the $637 million expected. The company guided EPS in a range above expectations, now looking for Q4 at $2.68-2.80 v the $2.73 expected.
Management commented that “Customers’ traditional applications are generating more revenue and more engagement than ever before”. They added that customers “are accelerating adoption of modern application architectures, like Kubernetes, for new applications”.
The beat was the company’s eight straight and since that streak has begun, the stock is up over 40%.
Estimates
Over the last 30 days, estimates have turned higher. For the current year, we have seen estimates raised from $10.54 to $10.61. For next year, we see estimates at $11.87, up from $11.79.
In addition to estimates, some analysts have taken their price targets higher since earnings. JPMorgan Chase has FFIV at Overweight and a $230 price target and MKM Partners has the stock at a Buy and $248 target.
Firms are citing strong software growth expectations in 2022 as the reason to be bullish into next year.
The Technicals
The stock is above most moving averages, with the 50-day recently holding at $196. The 200-day is at $190, which is further away than all-time highs at $216.15.
A couple Fibonacci setups on the charts with a smaller one drawn from the April highs to recent lows. The 161.8% extensions are $237, about 15% from current levels.
If we draw from 2018 highs to the COVID crash lows, we get a 161.8% extension target of $275. This would be a move of about 35% higher from today’s levels.
Bottom Line
F5 has struggled all year, but after the recent earnings some momentum has come back into the name. Strong software growth is expected, so watch for the company to continue to beat numbers.
On the technical front, the stock looks ready to breakout. However, it will likely need a positive catalyst to get to those price targets mentioned above.
Cardlytics is a Zacks Rank #5 (Strong Sell) that is an advertising platform in banks digital channels. Through purchasing data, Cardlytics can see where and when customers buy both online and in a store. From that, they identify opportunities that target people within their bank.
The stock has seen a serious drop as of late because of a poor earnings report earlier in the month. Additionally, the stock has been damaged technically, so investors looking to buy the dip might want to hold off until the chart looks better.
More About CDLX
Cardlytics was founded in 2008 and is headquartered in Atlanta, Georgia. The company employs over 600 people and has a market cap of about $3 billion. The stock has Zacks Style Scores of “F” in Value and Growth, as well as “D” in momentum.
Q2 Earnings and Guide
In early August, the company reported an EPS miss of 11%. While the company saw year over year revenues that more than doubled, they guided Q3 revenues below expectations. The CEO had some comments that blamed an uneven recovery in Q3 for the guide and expects macroeconomic challenges.
The stock did not react well, gapping lower and falling from the $120 level to $85. Since earnings, the stock has chopped in the mid $80s and is now back above $90.
Estimates
The guide lower forced analysts to start dropping their estimates. For the current quarter, numbers dropped over the last 30 days from -$0.25 to -$0.50, or 100%. For the current year, estimates have dropped from a loss of 95 cents to an expected loss of $1.50.
The Technicals
The stock found post-earnings support at the $80 area. This was where it traded late in 2020 before it broke out earlier this year, essentially doubling in value.
Now the bulls are trying to repair the damage done, recently rallying over the $90 level. However, the 21-day moving average at $91 could see resistance. Above that, $110 is the 50-day and $120 is the 200-day.
Traders should look to sell into these resistance levels as the fundamental story is damaged at the moment.
In Summary
Cardlytics is starting to rally, but the bulls will be limited in what they can do until the next quarter. If the company can beat expectations, then perhaps the stock’s momentum can return. Until then, investors should avoid and look elsewhere.
Additional content:
3 Solar Stocks Amid the California Renewables Boom
With the gradual recovery of the U.S. economy in the past couple of quarters, the solar market has returned to a growth trajectory buoyed by solid installation activities. The state of California has been leading the U.S. solar market in terms of capacity.
As stated by the Solar Energy Industries Association (SEIA), California ranks first in terms of solar energy output within the United States, with solar energy supplying more than 20% of California’s electricity today. Naturally, there has been an increase in activities by prominent solar companies in the state, which might attract investors’ attention.
What Led to the Boom?
As in the rest of the country, the trend of rapidly plummeting prices of solar modules due to improved labor productivity; low supply chain costs, and higher module efficiency have been observed in California too. The Breakthrough Institute found that the value of solar has fallen by around 37% since 2014 relative to other sources of electricity, after analyzing six years of hourly generation and price data from the California Independent System Operator (CAISO). This surely offers great incentive for solar installers.
Both the weather and the economic environment in California have been supporting a solar market boom. For instance, the California Energy Commission’s New Solar Homes Partnership (NSHP) program was created as part of a statewide solar incentive program called the California Solar Initiative (CSI), which was launched in January 2007.
The program was intended to provide incentives for the integration of solar energy systems in new home construction in investor-owned utility (IOU) territories. Also, the solar investment tax credit boosted the solar market in this state.
Looking Ahead
In August 2021, the California Energy Commission approved rules that would require new buildings, including multi-family housing and commercial structures, to be equipped with solar and battery storage. This should add further impetus to solar growth in the state.
Looking ahead, to help meet California’s target of 50% renewable generation by 2025, CAISO plans to add another 1.6 gigawatts (GW) of utility-scale solar capacity in 2021, per a report published by the U.S. Energy Information Administration in August. CAISO had projected the addition of 2.5 GW of battery storage capacity in 2021. These projections make us confident about the continuance of the solar boom in California in the coming days.
Stocks to Watch
Considering the aforementioned discussion, let’s take a closer look at three solar stocks that have a strong presence in California and are thus poised to do well.
Sunrun has signed contracts with three community choice aggregators (CCAs) in California’s San Francisco Bay Area designed to meet state-mandated resource adequacy requirements, in August 2021. In 2020, the company had signed contracts to install up to 20 megawatts (MW) of solar-battery systems for about 6,000 homes served by CCAs East Bay Community Energy, Peninsula Clean Energy and Silicon Valley Clean Energy. The company carries a Zacks Rank #3 (Hold).
Canadian Solar’s subsidiary, Recurrent Energy completed the divestiture of its Slate project in California to Goldman Sachs Renewable Power in January 2021. With a generation capacity of 300 megawatt-alternate current (MWac), Slate was Recurrent Energy's largest solar-plus-storage project.
ReneSola clinched a power purchase agreement (PPA) for the output of a 20-MW solar project in California in December 2020 that will be coupled with 6.5 MW/26 MWh of battery storage. The output of the complex will be bought by Northern California-based electricity provider, Valley Clean Energy. The company carries a Zacks Rank #3.
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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F5 Networks, Cardlytics, Sunrun, Canadian Solar and ReneSola highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 30, 2021 – Zacks Equity Research Shares of F5 Networks, Inc. (FFIV - Free Report) as the Bull of the Day, Cardlytics, Inc. (CDLX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Sunrun Inc. (RUN - Free Report) , Canadian Solar Inc. (CSIQ - Free Report) and ReneSola Ltd (SOL - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
F5 Networks is a Zacks Rank #1 (Strong Buy) that provides multi-cloud application services for the security, performance, and availability of network applications, servers, and storage systems.
The stock has been trading sideways all year, but after an earnings beat, estimates are headed higher. Bulls are now looking for a run to all-time highs and a breakout into the end of the year.
About the Company
F5 Networks focus is multi-cloud applications that enable customers to address performance, security, automation and insight. The company caters to banking & financial services, federal government Agencies, and service providers. F5 also provides a range of professional services, including consulting, training, installation, maintenance, and other technical support services.
The company has over 6,000 full time employees and is headquartered in Seattle, Washington. Founded in 1996, F5 has partnerships with large cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
F5 Networks has a market cap of $12 Billion and has Zacks Style Scores of “F” in Growth and “D” in Value. The stock has a Forward PE is 20 and pays no dividend.
Q3 Earnings
F5 reported back in July, seeing a 12% beat on EPS. Revenues came in above expectations at $652 million v the $637 million expected. The company guided EPS in a range above expectations, now looking for Q4 at $2.68-2.80 v the $2.73 expected.
Management commented that “Customers’ traditional applications are generating more revenue and more engagement than ever before”. They added that customers “are accelerating adoption of modern application architectures, like Kubernetes, for new applications”.
The beat was the company’s eight straight and since that streak has begun, the stock is up over 40%.
Estimates
Over the last 30 days, estimates have turned higher. For the current year, we have seen estimates raised from $10.54 to $10.61. For next year, we see estimates at $11.87, up from $11.79.
In addition to estimates, some analysts have taken their price targets higher since earnings. JPMorgan Chase has FFIV at Overweight and a $230 price target and MKM Partners has the stock at a Buy and $248 target.
Firms are citing strong software growth expectations in 2022 as the reason to be bullish into next year.
The Technicals
The stock is above most moving averages, with the 50-day recently holding at $196. The 200-day is at $190, which is further away than all-time highs at $216.15.
A couple Fibonacci setups on the charts with a smaller one drawn from the April highs to recent lows. The 161.8% extensions are $237, about 15% from current levels.
If we draw from 2018 highs to the COVID crash lows, we get a 161.8% extension target of $275. This would be a move of about 35% higher from today’s levels.
Bottom Line
F5 has struggled all year, but after the recent earnings some momentum has come back into the name. Strong software growth is expected, so watch for the company to continue to beat numbers.
On the technical front, the stock looks ready to breakout. However, it will likely need a positive catalyst to get to those price targets mentioned above.
Bear of the Day:
Cardlytics is a Zacks Rank #5 (Strong Sell) that is an advertising platform in banks digital channels. Through purchasing data, Cardlytics can see where and when customers buy both online and in a store. From that, they identify opportunities that target people within their bank.
The stock has seen a serious drop as of late because of a poor earnings report earlier in the month. Additionally, the stock has been damaged technically, so investors looking to buy the dip might want to hold off until the chart looks better.
More About CDLX
Cardlytics was founded in 2008 and is headquartered in Atlanta, Georgia. The company employs over 600 people and has a market cap of about $3 billion. The stock has Zacks Style Scores of “F” in Value and Growth, as well as “D” in momentum.
Q2 Earnings and Guide
In early August, the company reported an EPS miss of 11%. While the company saw year over year revenues that more than doubled, they guided Q3 revenues below expectations. The CEO had some comments that blamed an uneven recovery in Q3 for the guide and expects macroeconomic challenges.
The stock did not react well, gapping lower and falling from the $120 level to $85. Since earnings, the stock has chopped in the mid $80s and is now back above $90.
Estimates
The guide lower forced analysts to start dropping their estimates. For the current quarter, numbers dropped over the last 30 days from -$0.25 to -$0.50, or 100%. For the current year, estimates have dropped from a loss of 95 cents to an expected loss of $1.50.
The Technicals
The stock found post-earnings support at the $80 area. This was where it traded late in 2020 before it broke out earlier this year, essentially doubling in value.
Now the bulls are trying to repair the damage done, recently rallying over the $90 level. However, the 21-day moving average at $91 could see resistance. Above that, $110 is the 50-day and $120 is the 200-day.
Traders should look to sell into these resistance levels as the fundamental story is damaged at the moment.
In Summary
Cardlytics is starting to rally, but the bulls will be limited in what they can do until the next quarter. If the company can beat expectations, then perhaps the stock’s momentum can return. Until then, investors should avoid and look elsewhere.
Additional content:
3 Solar Stocks Amid the California Renewables Boom
With the gradual recovery of the U.S. economy in the past couple of quarters, the solar market has returned to a growth trajectory buoyed by solid installation activities. The state of California has been leading the U.S. solar market in terms of capacity.
As stated by the Solar Energy Industries Association (SEIA), California ranks first in terms of solar energy output within the United States, with solar energy supplying more than 20% of California’s electricity today. Naturally, there has been an increase in activities by prominent solar companies in the state, which might attract investors’ attention.
What Led to the Boom?
As in the rest of the country, the trend of rapidly plummeting prices of solar modules due to improved labor productivity; low supply chain costs, and higher module efficiency have been observed in California too. The Breakthrough Institute found that the value of solar has fallen by around 37% since 2014 relative to other sources of electricity, after analyzing six years of hourly generation and price data from the California Independent System Operator (CAISO). This surely offers great incentive for solar installers.
Both the weather and the economic environment in California have been supporting a solar market boom. For instance, the California Energy Commission’s New Solar Homes Partnership (NSHP) program was created as part of a statewide solar incentive program called the California Solar Initiative (CSI), which was launched in January 2007.
The program was intended to provide incentives for the integration of solar energy systems in new home construction in investor-owned utility (IOU) territories. Also, the solar investment tax credit boosted the solar market in this state.
Looking Ahead
In August 2021, the California Energy Commission approved rules that would require new buildings, including multi-family housing and commercial structures, to be equipped with solar and battery storage. This should add further impetus to solar growth in the state.
Looking ahead, to help meet California’s target of 50% renewable generation by 2025, CAISO plans to add another 1.6 gigawatts (GW) of utility-scale solar capacity in 2021, per a report published by the U.S. Energy Information Administration in August. CAISO had projected the addition of 2.5 GW of battery storage capacity in 2021. These projections make us confident about the continuance of the solar boom in California in the coming days.
Stocks to Watch
Considering the aforementioned discussion, let’s take a closer look at three solar stocks that have a strong presence in California and are thus poised to do well.
Sunrun has signed contracts with three community choice aggregators (CCAs) in California’s San Francisco Bay Area designed to meet state-mandated resource adequacy requirements, in August 2021. In 2020, the company had signed contracts to install up to 20 megawatts (MW) of solar-battery systems for about 6,000 homes served by CCAs East Bay Community Energy, Peninsula Clean Energy and Silicon Valley Clean Energy. The company carries a Zacks Rank #3 (Hold).
Canadian Solar’s subsidiary, Recurrent Energy completed the divestiture of its Slate project in California to Goldman Sachs Renewable Power in January 2021. With a generation capacity of 300 megawatt-alternate current (MWac), Slate was Recurrent Energy's largest solar-plus-storage project.
In May 2021, Recurrent Energy won a contract to build the $550 million Crimson Solar Project from the Biden administration. The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ReneSola clinched a power purchase agreement (PPA) for the output of a 20-MW solar project in California in December 2020 that will be coupled with 6.5 MW/26 MWh of battery storage. The output of the complex will be bought by Northern California-based electricity provider, Valley Clean Energy. The company carries a Zacks Rank #3.
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Zacks Investment Research
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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.