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Diodes, AB InBev, Apple, Google and Sony highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – September 13, 2021 – Zacks Equity Research Shares of Diodes Inc. (DIOD - Free Report) as the Bull of the Day, Anheuser-Busch InBev SA/NV (BUD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple Inc. (AAPL - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Sony Group Corporation (SONY - Free Report) .
Diodes is a Zacks Rank #1 (Strong Buy) and this chip maker recently reported and posted guidance that was above the Wall Street estimate for sales. The company hasn’t missed on a quarterly report since 2017.
Let’s take a deeper look at this stock in this Bull of the Day article.
Description
Diodes Incorporated is a leading manufacturer and supplier of high-quality discrete and analog semiconductor products, primarily to the communications, computing, industrial, consumer electronics and automotive markets. The Company's corporate sales, marketing, engineering and logistics headquarters is located in Southern California.
Earnings History
When I look at a stock, the first thing I do 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 DIOD, I see a great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters. As mentioned above, the company actually has an 18 quarter streak of beating the Zacks Consensus Estimate.
The average positive earnings surprise over the last fours quarters works out to be 10%, which isn’t much but consistency is the name of the game for DIOD.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For DIOD, I see estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has moved from $1.13 to $1.38.
Next quarter has moved from $0.95 to $1.17.
The full-year number has increased from $4.24 to $4.76 over the last 60 days.
Next year is at $5.52 and that is up from $4.74 over the same time horizon.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for DIOD is very reasonable. I see an 19x forward earnings multiple and sales growth in the most recent quarter coming in just over 52%. The price to book multiple of 3.6x and that is well below the industry average of 13x. Price to sales comes in at 2.7x and again this is well below the industry average of 12x.
Anheuser-Busch InBev is a Zacks Rank #5 (Strong Sell) following a recent miss the Zacks Consensus Estimate. Stocks that miss the number don’t always fall to a Zacks Rank #5 (Strong Sell) so let’s take a look at why that is the case in this Bear of the Day article.
Description
Anheuser-Busch InBev SA/NV engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois, among others. The company was founded in 1366 and is headquartered in Leuven, Belgium. Anheuser-Busch InBev SA/NV is a subsidiary of AB InBev NV/SA.
Earnings History
When I look at a stock, the first thing I do 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 BUD, I see two misses and two beats of the Zacks Consensus Estimate over the last year. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
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 BUD I see estimates fluctuating.
This quarter has dipped from $0.96 to $0.92.
Next quarter has moved from $0.62 to $0.70 over the last 60 days.
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 decreased from $3.17 to $2.94.
The 2022 number has moved from $3.64 to $3.41 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Is Apple a Must-Buy Ahead of New iPhone Launch?
Apple is set to host its annual product launch event on Sep 14. The virtual event tagged as “California Dreaming” is likely to witness the launch of iPhone 13, Apple Watch 7, and Airpods 3.
Apple has been riding on strong demand for 5G-enabled iPhone 12 despite supply-chain constraints. A revamped iPad and Mac line-up of devices, healthcare-focused Apple Watch, and an expanding App Store ecosystem along with continued momentum in the Services business have been major growth drivers.
The upcoming iPhone 13 is expected to feature incremental improvements in processor, camera and display, which will further drive demand. Apple Watch is also expected to get major design changes.
iPhone 13 to Feature Satellite Communication
According to a recent report from Bloomberg, which cited notable analyst Ming-Chi Kuo, iPhone 13 can include satellite communication features.
Design-wise, iPhone 13 is expected to be similar to iPhone 12 with the exception of a smaller notch. In terms of camera, Apple is said to offer an improved optical zoom.
Apple has been speculated to add a battery with a larger capacity as it plans to introduce ProMotion display technology and an always-on display, both of which consume more power.
One of the new models is expected to feature low-temperature polycrystalline oxide (“LTPO”) display and indium gallium zinc oxide technology. These will enhance the iPhone’s power efficiency and responsiveness. The company already uses the LTPO technology in the Apple Watch.
A Redesigned Apple Watch This Year?
Apple Watch is expected to get major design changes this year. The company is likely to speed up the processor, improve wireless connectivity and use a thinner display bezel. It is also expected to include updated ultra-wideband functionality, which Apple introduced with Watch 6.
Apple Watch’s adoption rate continues to grow rapidly. Notably, more than 75% of customers who purchased Apple Watch in the fiscal second quarter were first-time customers. Wearables, Home and Accessories sales increased 36% year over year to $8.78 billion and accounted for 10.8% of total sales in second-quarter fiscal 2021.
Apple’s endeavor to add healthcare features to its smartwatch has been a game changer for the device that faces significant competition from the likes of Alphabet, Sony, Xiaomi, Samsung Electronics and Huawei Technologies. However, no major upgrades are expected in the healthcare front in this year’s model.
Apple Likely to Launch Airpods 3
Airpods 3 are rumored to be similar in look to AirPods Pro but without the ear tips. Moreover, the device is not expected to feature premium features like Active Noise Cancellation and Transparency Mode.
However, Airpods 3 is expected to feature Dolby Atmos with Spatial Audio technology. Other notable improvements can be in the battery and microphone.
Apple has outperformed the S&P 500 in the past three months. While the shares have rallied 20.9%, the S&P 500 has returned 6.6%.
The launch of iPhone 13 presents significant growth opportunities. The momentum in Services portfolio is expected to continue driven by App Store, Cloud Services, Music, advertising and AppleCare.
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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Diodes, AB InBev, Apple, Google and Sony highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 13, 2021 – Zacks Equity Research Shares of Diodes Inc. (DIOD - Free Report) as the Bull of the Day, Anheuser-Busch InBev SA/NV (BUD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple Inc. (AAPL - Free Report) , Alphabet Inc. (GOOGL - Free Report) and Sony Group Corporation (SONY - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Diodes is a Zacks Rank #1 (Strong Buy) and this chip maker recently reported and posted guidance that was above the Wall Street estimate for sales. The company hasn’t missed on a quarterly report since 2017.
Let’s take a deeper look at this stock in this Bull of the Day article.
Description
Diodes Incorporated is a leading manufacturer and supplier of high-quality discrete and analog semiconductor products, primarily to the communications, computing, industrial, consumer electronics and automotive markets. The Company's corporate sales, marketing, engineering and logistics headquarters is located in Southern California.
Earnings History
When I look at a stock, the first thing I do 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 DIOD, I see a great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters. As mentioned above, the company actually has an 18 quarter streak of beating the Zacks Consensus Estimate.
The average positive earnings surprise over the last fours quarters works out to be 10%, which isn’t much but consistency is the name of the game for DIOD.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For DIOD, I see estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has moved from $1.13 to $1.38.
Next quarter has moved from $0.95 to $1.17.
The full-year number has increased from $4.24 to $4.76 over the last 60 days.
Next year is at $5.52 and that is up from $4.74 over the same time horizon.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for DIOD is very reasonable. I see an 19x forward earnings multiple and sales growth in the most recent quarter coming in just over 52%. The price to book multiple of 3.6x and that is well below the industry average of 13x. Price to sales comes in at 2.7x and again this is well below the industry average of 12x.
Bear of the Day:
Anheuser-Busch InBev is a Zacks Rank #5 (Strong Sell) following a recent miss the Zacks Consensus Estimate. Stocks that miss the number don’t always fall to a Zacks Rank #5 (Strong Sell) so let’s take a look at why that is the case in this Bear of the Day article.
Description
Anheuser-Busch InBev SA/NV engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, which primarily include Budweiser, Corona, and Stella Artois, among others. The company was founded in 1366 and is headquartered in Leuven, Belgium. Anheuser-Busch InBev SA/NV is a subsidiary of AB InBev NV/SA.
Earnings History
When I look at a stock, the first thing I do 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 BUD, I see two misses and two beats of the Zacks Consensus Estimate over the last year. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
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 BUD I see estimates fluctuating.
This quarter has dipped from $0.96 to $0.92.
Next quarter has moved from $0.62 to $0.70 over the last 60 days.
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 decreased from $3.17 to $2.94.
The 2022 number has moved from $3.64 to $3.41 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Is Apple a Must-Buy Ahead of New iPhone Launch?
Apple is set to host its annual product launch event on Sep 14. The virtual event tagged as “California Dreaming” is likely to witness the launch of iPhone 13, Apple Watch 7, and Airpods 3.
Apple has been riding on strong demand for 5G-enabled iPhone 12 despite supply-chain constraints. A revamped iPad and Mac line-up of devices, healthcare-focused Apple Watch, and an expanding App Store ecosystem along with continued momentum in the Services business have been major growth drivers.
The upcoming iPhone 13 is expected to feature incremental improvements in processor, camera and display, which will further drive demand. Apple Watch is also expected to get major design changes.
iPhone 13 to Feature Satellite Communication
According to a recent report from Bloomberg, which cited notable analyst Ming-Chi Kuo, iPhone 13 can include satellite communication features.
Design-wise, iPhone 13 is expected to be similar to iPhone 12 with the exception of a smaller notch. In terms of camera, Apple is said to offer an improved optical zoom.
Apple has been speculated to add a battery with a larger capacity as it plans to introduce ProMotion display technology and an always-on display, both of which consume more power.
One of the new models is expected to feature low-temperature polycrystalline oxide (“LTPO”) display and indium gallium zinc oxide technology. These will enhance the iPhone’s power efficiency and responsiveness. The company already uses the LTPO technology in the Apple Watch.
A Redesigned Apple Watch This Year?
Apple Watch is expected to get major design changes this year. The company is likely to speed up the processor, improve wireless connectivity and use a thinner display bezel. It is also expected to include updated ultra-wideband functionality, which Apple introduced with Watch 6.
Apple Watch’s adoption rate continues to grow rapidly. Notably, more than 75% of customers who purchased Apple Watch in the fiscal second quarter were first-time customers. Wearables, Home and Accessories sales increased 36% year over year to $8.78 billion and accounted for 10.8% of total sales in second-quarter fiscal 2021.
Apple’s endeavor to add healthcare features to its smartwatch has been a game changer for the device that faces significant competition from the likes of Alphabet, Sony, Xiaomi, Samsung Electronics and Huawei Technologies. However, no major upgrades are expected in the healthcare front in this year’s model.
Apple Likely to Launch Airpods 3
Airpods 3 are rumored to be similar in look to AirPods Pro but without the ear tips. Moreover, the device is not expected to feature premium features like Active Noise Cancellation and Transparency Mode.
However, Airpods 3 is expected to feature Dolby Atmos with Spatial Audio technology. Other notable improvements can be in the battery and microphone.
Apple Should Keep Soaring
Currently, Apple has a Zacks Rank #1 (Strong Buy). So, the stock is expected to perform better than the broader market in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Apple has outperformed the S&P 500 in the past three months. While the shares have rallied 20.9%, the S&P 500 has returned 6.6%.
The launch of iPhone 13 presents significant growth opportunities. The momentum in Services portfolio is expected to continue driven by App Store, Cloud Services, Music, advertising and AppleCare.
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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.