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Danaos and Futu Holdings have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – January 25, 2022 – Zacks Equity Research shares Danaos (DAC - Free Report) as the Bull of the Day and Futu Holdings (FUTU - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , CVS Health (CVS - Free Report) .
There is no question that shipping stocks have been absolute rockstars the last several quarters. Everything went their way. The global pandemic caused such a seismic shift to the economy that it created once-in-a-lifetime opportunities for this industry. The shift moved consumer dollars away from experiences like restaurants and vacations, and pushed it towards goods rather than services. This created immense demand for shippers, truckers, and the like.
It should then come as no surprise that today’s Bull of the Day is a shipping stock. I’m talking about Zacks Rank #1 (Strong Buy) Danaos. Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of February 28, 2021, it had a fleet of 65 containerships aggregating 403,793 twenty-foot equivalent units in capacity.
Danaos is a Zacks Rank #1 (Strong Buy) in the Transportation – Shipping industry which ranks in the Top 38% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is the series of earnings estimate revisions coming from analysts. The numbers are nothing short of staggering. Over the last ninety days, our Zacks Consensus Estimate for the current year is up from $13.10 to $17.53, while next year’s number is up from $20.15 to an eye-watering $30.03. That represents 71% earnings growth next year, on the heels of this year’s 144% growth.
Mind you, we are talking about a $77 stock. It’s slated to make $30 per share next year. That’s a PE ratio less than 2.5x future earnings. With growth like this, that is simply unheard of. Looking at the revenue growth, the story is the same. Current year revenue growth is forecast to come in at 42% while next year is set for 38.4%. Those are all monster growth numbers which the company has consistently beat.
With the way this market has been going, it’s been easy to beat up on certain industries. Among the most downtrodden, have to be anything related to China. If you’re a Chinese internet stock, chances are you have been beaten into oblivion lately. Perhaps, a good chunk of the bearishness is overdone. I agree with that. But, there may be stocks out there in that industry which are beaten up for good reason. And that reason is earnings going in the wrong direction.
One such stock is today’s Bear of the Day. It’s Zacks Rank # 5 (Strong Sell) Futu Holdings. Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. The company provides trading, clearing, and settlement services; margin financing and securities lending services; and stock yield enhancement program. It also offers online wealth management services under the Futu Money Plus brand, which gives access to mutual funds, private funds, and bonds; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas.
Futu is in the Technology Services industry which ranks in the Bottom 33% of our Zacks Industry Rank. The growth numbers are strong here, but recently they have become a bit weaker. Over the last sixty days, two analysts have cut their numbers for next year. The bearish sentiment has cut our Zacks Consensus Estimate from $3.35 to $3.06. While the number has dropped, it still represents 22% earnings growth for next year.
Additional content:
Momentum in Azure Cloud to Aid Microsoft's (MSFT - Free Report) Q2 Earnings
Microsoft’s second-quarter fiscal 2022 results, scheduled to be reported on Jan 25, are likely to have been driven by the continued strength in its cloud platform — Azure. The platform has been benefiting from the pandemic-led digital transformation across the globe.
For the fiscal second quarter, Microsoft expects Intelligent Cloud revenues (Azure falls under the segment) between $18.1 billion and $18.35 billion. Azure’s revenue growth is likely to reflect continued strength in consumption-based services.
The Zacks Consensus Estimate for the Intelligent Cloud segment revenues is currently pegged at $18.26 billion, indicating growth of 25.1% from the figure reported in the year-ago quarter.
Click here to know how Microsoft’s overall fiscal second-quarter performance is expected to have been.
Azure to Drive Top-Line Growth
The increasing migration of workloads to the cloud is fueling demand for cloud infrastructure monitoring, web-based application performance management and human capital management solutions. This is driving demand for Microsoft’s cloud service.
Azure’s increased availability in more than 60 announced regions worldwide is anticipated to have bolstered its cloud business and strengthened its competitive position against Amazon’s Amazon Web Services (AWS) andGoogle Cloud.
In the last-reported quarter, Amazon’s AWS revenues (15% of total company sales) rose 39% year over year to $16.1 billion. The expansion of its AWS services portfolio is helping Amazon maintain its dominance in the cloud domain by gaining more customers.
Meanwhile, in third-quarter 2021, Alphabet recorded a 44.9% year-over-year jump in Google Cloud revenues to $4.9 billion, which contributed 7.7% to quarterly revenues.
Microsoft reported a 50% year over year (up 48% at constant currency) increase in Azure and other cloud services’ revenues in first-quarter fiscal 2022. The upside was driven by robust growth in consumption-based business.
Healthcare Moves Noteworthy
Microsoft has been taking initiatives to boost its presence in the healthcare space. The pandemic is driving the digital transformation of the healthcare system.
In the to-be-reported quarter, Microsoft inked a partnership with CVS Health to help the latter ramp up its digital transformation endeavors.
CVS Health selected Microsoft as its preferred cloud provider and the companies will also work together to develop advanced solutions to enhance customer health outcomes.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
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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Danaos and Futu Holdings have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 25, 2022 – Zacks Equity Research shares Danaos (DAC - Free Report) as the Bull of the Day and Futu Holdings (FUTU - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Microsoft (MSFT - Free Report) , Amazon (AMZN - Free Report) , CVS Health (CVS - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
There is no question that shipping stocks have been absolute rockstars the last several quarters. Everything went their way. The global pandemic caused such a seismic shift to the economy that it created once-in-a-lifetime opportunities for this industry. The shift moved consumer dollars away from experiences like restaurants and vacations, and pushed it towards goods rather than services. This created immense demand for shippers, truckers, and the like.
It should then come as no surprise that today’s Bull of the Day is a shipping stock. I’m talking about Zacks Rank #1 (Strong Buy) Danaos. Danaos Corporation, together with its subsidiaries, owns and operates containerships in Australia, Asia, Europe, and the United States. The company offers seaborne transportation services, such as chartering its vessels to liner companies. As of February 28, 2021, it had a fleet of 65 containerships aggregating 403,793 twenty-foot equivalent units in capacity.
Danaos is a Zacks Rank #1 (Strong Buy) in the Transportation – Shipping industry which ranks in the Top 38% of our Zacks Industry Rank. The reason for the favorable Zacks Rank is the series of earnings estimate revisions coming from analysts. The numbers are nothing short of staggering. Over the last ninety days, our Zacks Consensus Estimate for the current year is up from $13.10 to $17.53, while next year’s number is up from $20.15 to an eye-watering $30.03. That represents 71% earnings growth next year, on the heels of this year’s 144% growth.
Mind you, we are talking about a $77 stock. It’s slated to make $30 per share next year. That’s a PE ratio less than 2.5x future earnings. With growth like this, that is simply unheard of. Looking at the revenue growth, the story is the same. Current year revenue growth is forecast to come in at 42% while next year is set for 38.4%. Those are all monster growth numbers which the company has consistently beat.
Bear of the Day:
With the way this market has been going, it’s been easy to beat up on certain industries. Among the most downtrodden, have to be anything related to China. If you’re a Chinese internet stock, chances are you have been beaten into oblivion lately. Perhaps, a good chunk of the bearishness is overdone. I agree with that. But, there may be stocks out there in that industry which are beaten up for good reason. And that reason is earnings going in the wrong direction.
One such stock is today’s Bear of the Day. It’s Zacks Rank # 5 (Strong Sell) Futu Holdings. Futu Holdings Limited operates an online brokerage and wealth management platform in Hong Kong and internationally. The company provides trading, clearing, and settlement services; margin financing and securities lending services; and stock yield enhancement program. It also offers online wealth management services under the Futu Money Plus brand, which gives access to mutual funds, private funds, and bonds; market data and information services; and NiuNiu Community, which serves as an open forum for users and clients to share insights, ask questions, and exchange ideas.
Futu is in the Technology Services industry which ranks in the Bottom 33% of our Zacks Industry Rank. The growth numbers are strong here, but recently they have become a bit weaker. Over the last sixty days, two analysts have cut their numbers for next year. The bearish sentiment has cut our Zacks Consensus Estimate from $3.35 to $3.06. While the number has dropped, it still represents 22% earnings growth for next year.
Additional content:
Momentum in Azure Cloud to Aid Microsoft's (MSFT - Free Report) Q2 Earnings
Microsoft’s second-quarter fiscal 2022 results, scheduled to be reported on Jan 25, are likely to have been driven by the continued strength in its cloud platform — Azure. The platform has been benefiting from the pandemic-led digital transformation across the globe.
For the fiscal second quarter, Microsoft expects Intelligent Cloud revenues (Azure falls under the segment) between $18.1 billion and $18.35 billion. Azure’s revenue growth is likely to reflect continued strength in consumption-based services.
The Zacks Consensus Estimate for the Intelligent Cloud segment revenues is currently pegged at $18.26 billion, indicating growth of 25.1% from the figure reported in the year-ago quarter.
Click here to know how Microsoft’s overall fiscal second-quarter performance is expected to have been.
Azure to Drive Top-Line Growth
The increasing migration of workloads to the cloud is fueling demand for cloud infrastructure monitoring, web-based application performance management and human capital management solutions. This is driving demand for Microsoft’s cloud service.
Microsoft Corporation revenue-ttm | Microsoft Corporation Quote
Azure’s increased availability in more than 60 announced regions worldwide is anticipated to have bolstered its cloud business and strengthened its competitive position against Amazon’s Amazon Web Services (AWS) andGoogle Cloud.
In the last-reported quarter, Amazon’s AWS revenues (15% of total company sales) rose 39% year over year to $16.1 billion. The expansion of its AWS services portfolio is helping Amazon maintain its dominance in the cloud domain by gaining more customers.
Meanwhile, in third-quarter 2021, Alphabet recorded a 44.9% year-over-year jump in Google Cloud revenues to $4.9 billion, which contributed 7.7% to quarterly revenues.
Microsoft reported a 50% year over year (up 48% at constant currency) increase in Azure and other cloud services’ revenues in first-quarter fiscal 2022. The upside was driven by robust growth in consumption-based business.
Healthcare Moves Noteworthy
Microsoft has been taking initiatives to boost its presence in the healthcare space. The pandemic is driving the digital transformation of the healthcare system.
This Zacks Rank #2 (Buy) stock is striving to gain more opportunities presented by the rapid digitalization of the healthcare industry. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the to-be-reported quarter, Microsoft inked a partnership with CVS Health to help the latter ramp up its digital transformation endeavors.
CVS Health selected Microsoft as its preferred cloud provider and the companies will also work together to develop advanced solutions to enhance customer health outcomes.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks’ Top Picks to Cash in on Artificial Intelligence
This world-changing technology is projected to generate $100s of billions by 2025. From self-driving cars to consumer data analysis, people are relying on machines more than we ever have before. Now is the time to capitalize on the 4th Industrial Revolution. Zacks’ urgent special report reveals 6 AI picks investors need to know about today.
See 6 Artificial Intelligence Stocks With Extreme Upside Potential>>
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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.