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Garmin, Dollar Tree, 3D Systems, Stratasys and Materialise highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – September 14, 2021 – Zacks Equity Research Shares of Garmin Ltd. (GRMN - Free Report) as the Bull of the Day, Dollar Tree, Inc. (DLTR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on 3D Systems Corporation (DDD - Free Report) , Stratasys, Ltd. (SSYS - Free Report) and Materialise NV (MTLS - Free Report) .
Garmin crushed Zacks earnings estimates at the end of July as part of an impressive streak of bottom-line beats. GRMN shares have also outpaced the broader technology sector for years. And the navigation and wearable technology firm is poised to keep growing as it benefits from expansion within multiple areas.
From Fitness Trackers to Flying Taxis
Garmin helped kick off the modern consumer-facing GPS movement in 1989. The goal was to integrate GPS technology into navigation devices for multiple markets. For many, GRMN became a household name in the mid-2000s as in-car navigation systems began to take off.
Luckily, Garmin is far more diverse since many people use their smartphones to find their way around. The company's fitness wearables and smartwatches have grown in popularity despite competition from Apple and others. GRMN continues to roll out a diverse array of offerings in this hot space that still has plenty of runway.
Consumers are more connected than ever before and many want to track everything from their steps to their heart rates. Fitness revenue climbed 40% last quarter and the unit was its biggest top-line contributor, accounting for around 31% of total revenue.
Along with its more everyday consumer electronic devices, the Switzerland-headquartered firm sells high-end fish finders, advanced radars and systems for boats and airplanes, and much more. For instance, GRMN in February landed an agreement with Joby Aviation for tech to help create "scalable air taxi services."
Recent Showings and Outlook
Last year marked GRMN's fifth straight year of revenue growth. The company's sales climbed an impressive 11% to $4.19 billion, which came on top of FY19's 12.3% revenue expansion and 2018's 7%. More recently, GRMN posted 25% first quarter sales expansion and 53% growth in Q2.
Garmin reported 40% or higher top-line growth in all five of its business units, with its Auto division up 74% to lead the way, followed by 66% Marine expansion. The company also raised its full-year guidance on the back of broad-based strength. And it could continue to benefit from solid spending, especially since many of its offerings are geared toward higher-income consumers who are sitting on a ton of savings.
GRMN's adjusted second-quarter earnings soared 85% to $1.68 a share to blow by our consensus EPS estimates by 37%. The company has now topped our bottom-line estimates by an average of 39% in the trailing four periods.
Zacks estimates call for GRMN's fiscal 2021 sales to climb 18% to $4.94 billion, with FY22 set to pop another 8% higher. Meanwhile, its adjusted EPS figures are expected to climb by 9% and 13%, respectively over this stretch.
Other Fundamentals
GRMN has popped 43% in 2021 and over 70% in the last 12 months to easily top the broader Zacks Technology Sector's 42% climb. The stock's outperformance extends over the last five years, with Garmin up 265% vs. tech's 184% run.
The performance has stretched its valuation picture, yet it still trades almost exactly in line with the broader technology sector at 28.3X forward 12-month earnings. Garmin shares have also slipped from its recent highs alongside other tech names, closing regular hours Monday around 4% off its August 31 records at around $171 a share. The recent pullback has sent the stock from overbought RSI levels (70 and above) to near neutral at 55.
Investors should also be pleased to know that its 1.57% dividend yield tops the 10-year U.S. Treasury's 1.32% and the S&P 500's 1.25%. The payout is made more impressive by its performance.
The company boasts a rather strong balance sheet. Garmin has no debt on its books at the moment, while holding $3.2 billion in cash and marketable securities. And it generated roughly $120 million of free cash flow last quarter.
Bottom Line
Garmin's positive earnings revisions help it land a Zacks Rank #1 (Strong Buy) right now. In the end, longer-term investors might want to consider Garmin as a financially robust, dividend-paying tech stock exposed to multiple growth areas from wearables to flying taxis.
Dollar Tree stock has fallen nearly 20% in 2021 and it tumbled following its second quarter earnings release near the end of August. Wall Street dumped the stock after the discount retail powerhouse warned about supply-chain setbacks and rising costs possibly impacting its profits.
The Basics
Dollar Tree is a discount retailer that operates over 15,000 stores that includes its namesake and Family Dollar. The company sells everything at its stores for $1 or less, which stands in contrast to rival Dollar General. Meanwhile, Family Dollar stores sell many items at the $1 price point, along with a broader array of offerings under $10.
DLTR doesn't really compete against the likes of Target or Walmart, which is a good thing. But the stock has still struggled over the past five years, up only 10% to lag far behind its industry and many of the standouts in the space. Wall Street clearly hasn't loved DLTR's Family Dollar purchase, which it made back in 2015.
Dollar Tree's consensus earnings estimates have slipped since its report to help DLTR grab a Zacks Rank #5 (Strong Sell) right now. Management noted in its second quarter remarks that higher freight costs and other "inflationary pressures" are poised to continue to negatively impact the firm. The issues are exacerbated for a business that sells goods for $1 or less since it doesn't create much wiggle room on the pricing front.
Zacks estimates call for its adjusted Q3 earnings to slip 32% from the year-ago period to $0.95 a share. Meanwhile, its fiscal 2021 earnings are expected to dip only 2%.
Bottom Line
Dollar Tree shares closed regular hours Monday at $89.26, or about 16% below where they were on August 25. The stock is now down 17% in 2021 and it has moved roughly sideways over the past 12 months.
On top of that, its Retail - Discount Stores space is in the bottom 29% of over 250 Zacks industries right now. And unlike many of its peers and other national retailers, Dollar Tree doesn't pay a dividend.
Additional content:
3 of the Best 3D Printing Stocks to Keep an Eye On
3D printing is undoubtedly a revolutionary technology, better known as additive manufacturing. It has in recent times gained commercial adaptation and is known for creating physical objects digitally. In the case of 3D printing, thin layers of materials in the form of liquids are laid down and bonded together.
3D printing is now in huge demand, particularly among the manufacturing, health care, and education industries. This is because the coronavirus pandemic has disrupted their supply chain and sequentially boosted demand for on-site manufacturing options for major parts, which can be fulfilled with the help of 3D printing.
Interestingly, the current economic scenario bodes well for 3D printing. The U.S. economy is still at a recovery stage, especially after the drubbing it took last year amid the health crisis. While inflation at present is weighing on consumers, their confidence about their well-being took a beating lately.
Companies also aren't hiring as quickly as expected. But these developments indicate that the Fed may continue to remain accommodative and, in the process, boost the economy. The Fed is likely to keep its key interest rates low. Such low rates make it easier for companies to borrow money and in turn purchase 3D printers.
In fact, the global 3D printing industry is expected to see a CAGR of around 17% between 2020 and 2023, per Statista Research Department, citing a statista.com article. What's more, the 3D printing industry worldwide is expected to see a CAGR of 21% from 2021 to 2028, citing a grandviewresearch.com article.
The article further noted that global shipments of 3D printers are expected to touch 15.3 million units by 2028. That's a staggering number, given that 2.1 million units of 3D printers were shipped last year. Furthermore, citing marketsandmarkets.com article, the global 3D printing market is projected to hit $34.8 billion by 2026 from $12.6 billion in 2021, at a CAGR of 22.5%.
All in all, the 3D printing industry is well-poised to gain traction in the near term. After all, 3D printing technology makes it easier to develop customized products and curtail manufacturing costs. Moreover, governments' investments in various 3D printing projects as well as initiatives to develop new 3D printing materials are expected to drive the global 3D printing market.
Thus, investors should watch out for promising 3D printing stocks that can make the most of the growing industry prospects. Here're the top three 3D printing stocks that deserve your attention –
3D Systems Corp. is a leading provider of 3D content-to-print solutions, including 3D printers, print materials, on-demand custom parts services and 3D authoring solutions for professionals and consumers worldwide. The company currently has a Zacks Rank #3 (Hold). Its expected earnings growth rate for the current year is 436.4%. Shares of 3D Systems have gained a whopping 194.9% so far this year.
Stratasys is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs). It currently has a Zacks Rank #3. The company's expected earnings growth rate for the current year is 8%. Shares of Stratasys have advanced 13.1% year to date.
Materialise is a provider of Additive Manufacturing (AM) software solutions and sophisticated 3D printing services in a wide variety of industries, including healthcare, automotive, aerospace, art and design and consumer products. The company currently has a Zacks Rank #2 (Buy). The company's expected earnings growth rate for the current year is 242.9%. Shares of Materialise have rallied 30.4% over the past two-year period. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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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Garmin, Dollar Tree, 3D Systems, Stratasys and Materialise highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 14, 2021 – Zacks Equity Research Shares of Garmin Ltd. (GRMN - Free Report) as the Bull of the Day, Dollar Tree, Inc. (DLTR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on 3D Systems Corporation (DDD - Free Report) , Stratasys, Ltd. (SSYS - Free Report) and Materialise NV (MTLS - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Garmin crushed Zacks earnings estimates at the end of July as part of an impressive streak of bottom-line beats. GRMN shares have also outpaced the broader technology sector for years. And the navigation and wearable technology firm is poised to keep growing as it benefits from expansion within multiple areas.
From Fitness Trackers to Flying Taxis
Garmin helped kick off the modern consumer-facing GPS movement in 1989. The goal was to integrate GPS technology into navigation devices for multiple markets. For many, GRMN became a household name in the mid-2000s as in-car navigation systems began to take off.
Luckily, Garmin is far more diverse since many people use their smartphones to find their way around. The company's fitness wearables and smartwatches have grown in popularity despite competition from Apple and others. GRMN continues to roll out a diverse array of offerings in this hot space that still has plenty of runway.
Consumers are more connected than ever before and many want to track everything from their steps to their heart rates. Fitness revenue climbed 40% last quarter and the unit was its biggest top-line contributor, accounting for around 31% of total revenue.
Along with its more everyday consumer electronic devices, the Switzerland-headquartered firm sells high-end fish finders, advanced radars and systems for boats and airplanes, and much more. For instance, GRMN in February landed an agreement with Joby Aviation for tech to help create "scalable air taxi services."
Recent Showings and Outlook
Last year marked GRMN's fifth straight year of revenue growth. The company's sales climbed an impressive 11% to $4.19 billion, which came on top of FY19's 12.3% revenue expansion and 2018's 7%. More recently, GRMN posted 25% first quarter sales expansion and 53% growth in Q2.
Garmin reported 40% or higher top-line growth in all five of its business units, with its Auto division up 74% to lead the way, followed by 66% Marine expansion. The company also raised its full-year guidance on the back of broad-based strength. And it could continue to benefit from solid spending, especially since many of its offerings are geared toward higher-income consumers who are sitting on a ton of savings.
GRMN's adjusted second-quarter earnings soared 85% to $1.68 a share to blow by our consensus EPS estimates by 37%. The company has now topped our bottom-line estimates by an average of 39% in the trailing four periods.
Zacks estimates call for GRMN's fiscal 2021 sales to climb 18% to $4.94 billion, with FY22 set to pop another 8% higher. Meanwhile, its adjusted EPS figures are expected to climb by 9% and 13%, respectively over this stretch.
Other Fundamentals
GRMN has popped 43% in 2021 and over 70% in the last 12 months to easily top the broader Zacks Technology Sector's 42% climb. The stock's outperformance extends over the last five years, with Garmin up 265% vs. tech's 184% run.
The performance has stretched its valuation picture, yet it still trades almost exactly in line with the broader technology sector at 28.3X forward 12-month earnings. Garmin shares have also slipped from its recent highs alongside other tech names, closing regular hours Monday around 4% off its August 31 records at around $171 a share. The recent pullback has sent the stock from overbought RSI levels (70 and above) to near neutral at 55.
Investors should also be pleased to know that its 1.57% dividend yield tops the 10-year U.S. Treasury's 1.32% and the S&P 500's 1.25%. The payout is made more impressive by its performance.
The company boasts a rather strong balance sheet. Garmin has no debt on its books at the moment, while holding $3.2 billion in cash and marketable securities. And it generated roughly $120 million of free cash flow last quarter.
Bottom Line
Garmin's positive earnings revisions help it land a Zacks Rank #1 (Strong Buy) right now. In the end, longer-term investors might want to consider Garmin as a financially robust, dividend-paying tech stock exposed to multiple growth areas from wearables to flying taxis.
Bear of the Day:
Dollar Tree stock has fallen nearly 20% in 2021 and it tumbled following its second quarter earnings release near the end of August. Wall Street dumped the stock after the discount retail powerhouse warned about supply-chain setbacks and rising costs possibly impacting its profits.
The Basics
Dollar Tree is a discount retailer that operates over 15,000 stores that includes its namesake and Family Dollar. The company sells everything at its stores for $1 or less, which stands in contrast to rival Dollar General. Meanwhile, Family Dollar stores sell many items at the $1 price point, along with a broader array of offerings under $10.
DLTR doesn't really compete against the likes of Target or Walmart, which is a good thing. But the stock has still struggled over the past five years, up only 10% to lag far behind its industry and many of the standouts in the space. Wall Street clearly hasn't loved DLTR's Family Dollar purchase, which it made back in 2015.
Dollar Tree's consensus earnings estimates have slipped since its report to help DLTR grab a Zacks Rank #5 (Strong Sell) right now. Management noted in its second quarter remarks that higher freight costs and other "inflationary pressures" are poised to continue to negatively impact the firm. The issues are exacerbated for a business that sells goods for $1 or less since it doesn't create much wiggle room on the pricing front.
Zacks estimates call for its adjusted Q3 earnings to slip 32% from the year-ago period to $0.95 a share. Meanwhile, its fiscal 2021 earnings are expected to dip only 2%.
Bottom Line
Dollar Tree shares closed regular hours Monday at $89.26, or about 16% below where they were on August 25. The stock is now down 17% in 2021 and it has moved roughly sideways over the past 12 months.
On top of that, its Retail - Discount Stores space is in the bottom 29% of over 250 Zacks industries right now. And unlike many of its peers and other national retailers, Dollar Tree doesn't pay a dividend.
Additional content:
3 of the Best 3D Printing Stocks to Keep an Eye On
3D printing is undoubtedly a revolutionary technology, better known as additive manufacturing. It has in recent times gained commercial adaptation and is known for creating physical objects digitally. In the case of 3D printing, thin layers of materials in the form of liquids are laid down and bonded together.
3D printing is now in huge demand, particularly among the manufacturing, health care, and education industries. This is because the coronavirus pandemic has disrupted their supply chain and sequentially boosted demand for on-site manufacturing options for major parts, which can be fulfilled with the help of 3D printing.
Interestingly, the current economic scenario bodes well for 3D printing. The U.S. economy is still at a recovery stage, especially after the drubbing it took last year amid the health crisis. While inflation at present is weighing on consumers, their confidence about their well-being took a beating lately.
Companies also aren't hiring as quickly as expected. But these developments indicate that the Fed may continue to remain accommodative and, in the process, boost the economy. The Fed is likely to keep its key interest rates low. Such low rates make it easier for companies to borrow money and in turn purchase 3D printers.
In fact, the global 3D printing industry is expected to see a CAGR of around 17% between 2020 and 2023, per Statista Research Department, citing a statista.com article. What's more, the 3D printing industry worldwide is expected to see a CAGR of 21% from 2021 to 2028, citing a grandviewresearch.com article.
The article further noted that global shipments of 3D printers are expected to touch 15.3 million units by 2028. That's a staggering number, given that 2.1 million units of 3D printers were shipped last year. Furthermore, citing marketsandmarkets.com article, the global 3D printing market is projected to hit $34.8 billion by 2026 from $12.6 billion in 2021, at a CAGR of 22.5%.
All in all, the 3D printing industry is well-poised to gain traction in the near term. After all, 3D printing technology makes it easier to develop customized products and curtail manufacturing costs. Moreover, governments' investments in various 3D printing projects as well as initiatives to develop new 3D printing materials are expected to drive the global 3D printing market.
Thus, investors should watch out for promising 3D printing stocks that can make the most of the growing industry prospects. Here're the top three 3D printing stocks that deserve your attention –
3D Systems Corp. is a leading provider of 3D content-to-print solutions, including 3D printers, print materials, on-demand custom parts services and 3D authoring solutions for professionals and consumers worldwide. The company currently has a Zacks Rank #3 (Hold). Its expected earnings growth rate for the current year is 436.4%. Shares of 3D Systems have gained a whopping 194.9% so far this year.
Stratasys is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs). It currently has a Zacks Rank #3. The company's expected earnings growth rate for the current year is 8%. Shares of Stratasys have advanced 13.1% year to date.
Materialise is a provider of Additive Manufacturing (AM) software solutions and sophisticated 3D printing services in a wide variety of industries, including healthcare, automotive, aerospace, art and design and consumer products. The company currently has a Zacks Rank #2 (Buy). The company's expected earnings growth rate for the current year is 242.9%. Shares of Materialise have rallied 30.4% over the past two-year period. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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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.