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The Andersons, Inc. and Noodles & Company highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL – March 14, 2022 – Zacks Equity Research Shares The Andersons, Inc. (ANDE - Free Report) as the Bull of the Day, Noodles & Company (NDLS - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on CrowdStrike Holdings, Inc. (CRWD - Free Report) , Advanced Micro Devices (AMD - Free Report) and ON Semiconductor (ON - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

The Andersons, Inc. finished out 2021 with a record quarter as its seeing the best agriculture conditions since 2014. This Zacks Rank #1 (Strong Buy) is expected to grow revenue another 6.3% in 2022 as agriculture remains a hot industry.

Founded in 1947, The Andersons is a agriculture company headquartered in Ohio that conducts business in the commodity merchandising, renewables and plant nutrient sectors.

It operates 77 grain facilities and trades 36M tonnes. In its renewables, it's a partner with Marathon Petroleum, the largest ethanol blender.

The Andersons supplies nutrient products to farmers from 37 facilities. It also manufactures granular products for lawn and other diverse markets, as well as manufactures and distributes specialty liquid ag and other industrial products.

It's a critical link in the North American agriculture supply chain network.

Another Big Beat in Q4 2021

On Feb 15, 2022, The Andersons reported its fourth quarter results and beat the Zacks Consensus by $0.56. Earnings were $1.14 versus the Zacks Consensus of just $0.58.

It was the fourth consecutive big beat by The Andersons.

All segments were strong, with Plant Nutrients reporting a record quarter. It receives, stores and markets nitrogen, phosphate and potash fertilizers.  

"Plant Nutrient followed up a very strong first half with a great second half, leading to a record year. Fertilizer prices and farm income both remain high; we continue to receive good support from our suppliers in this time of tight stocks and expect continued strong performance as we move into 2022," said President and CEO Pat Bowe.

In the renewables segment, ethanol crush margins were strong in the fourth quarter but are expected to soften to start 2022.

In a March 2022 Investor presentation, The Andersons said it expected lower seasonal ethanol crush margins in the first quarter but for there to be improvements later in the year as driving demand returned.

Estimates Raised for 2022

The Andersons is little covered on the Street. It's a small cap agriculture company with a market cap of just $1.49 billion.

But 2 estimates have been raised for 2022 in the last 30 days, pushing the Zacks Consensus up to $2.64 from $2.29. However this is an earnings decline of 10.2% as the company made $2.94 in last year's record year.

A Dividend All-Star

In February, The Andersons announced its latest dividend. It's rare for most small-cap companies, who are not banks, to pay dividends.

But it has an all-star dividend payout track record. It has paid 102 consecutive quarterly cash dividends since listing on the NASDAQ in Feb 1996. That's impressive.

It currently yields 1.6%.

Bear of the Day:

Noodles & Company is still navigating the coronavirus outbreaks 2 years into the pandemic. This Zacks Rank #5 (Strong Sell) is expected to see earnings fall in 2022 as Omicron and rising commodity costs pressure.

Noodles & Company operates 450 restaurants in the United States, serving noodle and pasta dishes from Wisconsin Mac & Cheese to good-for-you Zoodles.

A Big Miss in the Fourth Quarter of 2021

On Feb 23, Noodles & Company reported its fourth quarter results and missed on the Zacks Consensus by $0.13. It reported a loss of $0.05 versus the Zacks Consensus of $0.13.

Total revenue, however, rose 7.1% to $114.8 million from $107.2 million a year ago.

Comparable restaurant sales rose 11.2% system-wide, including company-owned restaurants rising 9.5% and a 20.8% gain for franchise restaurants compared to the prior year.

Digital sales were up, but only 1%, and accounted for 57.3% of sales.

However, the quarter was significantly impacted by the Delta variant outbreak.

"While underlying business fundamentals remained strong, fourth quarter results were impacted by staffing challenges, as well as the surge of the Delta COVID-19 variant in the Upper Midwest and Rocky Mountain regions, which contain a majority of our operations, particularly during November and into early December," said Dave Boennighausen.

"We estimate that the temporary closures and reduced operating hours associated with the Delta variant impacted our revenue by approximately $8.0 million during the fourth quarter. Importantly, as staffing improved and the Delta variant declined, system-wide comparable restaurant sales increased throughout the quarter, from 6.8% in October to 11.9% in November and 14.7% in December," he added.

Omicron Expected to Hit Q1

COVID continued to wreak havoc with the restaurant industry into 2022.

Noodles & Company acknowledged that Q1 would be hit by the Omicron wave. It also expected the first half of the year to be pressured due to commodity inflation but expects to quickly return to margin expansion.

But the analysts didn't like the near term uncertainty.

4 estimates were cut in the last 30 days for 2022, pushing the Zacks Consensus Estimate down to $0.13 from $0.53. This is an earnings decline of 23.5% because Noodles & Company made $0.17 in 2021.

Analysts do expect a rebound in 2023, but 2 estimates were lowered for that year in the last month too, pushing the 2023 Zacks Consensus down to $0.58 from $0.70.

Shares Plunge in 2022

The restaurant stocks have been pressured in 2022 by Omicron and rising commodity costs. Noodles & Company shares have fallen 30% year-to-date and are down 47.8% over the last year.

Shares aren't cheap on a P/E basis either. It still trades at 45x.

Investors interested in restaurant stocks like Noodles & Company might want to wait on the sidelines until later in the year when the commodity inflationary pressures are expected to ease.

Additional content:

Is CrowdStrike Worth Buying Amid Market Uncertainties?

Adding CrowdStrike Holdings, Inc. to your portfolio seems a wise idea amid the current macroeconomic and geopolitical uncertainties, given the strength of its fundamentals and solid prospects.

The U.S. equity markets have been witnessing severe volatility since the beginning of 2022 on increasing crude oil prices and rising inflation concerns. The ongoing Russia-Ukraine war has further increased worries for investors about global economic recovery.

The aforementioned factors have led to massive sell-off in the stock market with the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 plunging 8.7%, 16.1% and 10.6%, respectively, on a year-to-date basis.

Nonetheless, this sell-off has also created buying opportunities for investors. In the current scenario, investors can look for stocks with strong fundamentals that can stay afloat and grow once the impact of the aforementioned global macroeconomic and geopolitical uncertainties cools off.

Endpoint security solution provider, CrowdStrike is one such stock in our opinion.

Why an Attractive Pick?

Trading Way Below 52-Week High: CrowdStrike stock currently trades way below its 52-week high, which reflects its potential to go upward. The stock’s closing price of $191.02 on Mar 10 is 36% lower than the 52-week high of $298.48 attained on Nov 10, 2021.

Attractive Valuation: CrowdStrike currently trades at an attractive valuation multiple. The stock trades at a one-year forward P/S of 18.6X compared with its five-year average of 39.56X.

Solid Rank & Growth Score: CrowdStrike currently carries a Zacks Rank #2 (Buy) and has a Growth Score of A. Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. Thus, the company appears to be a compelling investment proposition at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.

Positive Earnings Surprise History: CrowdStrike has an impressive earnings surprise history. The company outpaced estimates in the trailing four quarters, delivering an average earnings surprise of 52.2%.

Solid Growth Prospects: The Zacks Consensus Estimate of 93 cents for fiscal 2023 earnings suggest growth of 38.8% from the year-ago reported figure. Moreover, earnings are expected to register 55% growth in fiscal 2024 and reach $1.44 per share. Its projected long-term earnings per share growth rate is 25%.

Robust Fundamental Growth Drivers: CrowdStrike is a global leader in next-generation endpoint protection, threat intelligence and cyberattack response services.

CrowdStrike is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches and the increasing necessity for security and networking products amid the COVID-19 pandemic-led remote working trend. Moreover, the ongoing conflict in Ukraine and sanctions imposed on Russia may result in an increase in cyberattacks as Kremlin might use it as a tool to put pressure on western countries to ease sanctions.

Additionally, continued digital transformation and cloud migration strategies adopted by organizations are key growth drivers. CrowdStrike’s portfolio strength, mainly the Falcon platform’s 10 cloud modules, boosts its competitive edge and helps add users.

Moreover, strategic acquisitions, like that of Humio and Preempt, are expected to drive growth for the company.

Earlier this week, CrowdStrike delivered better-than-expected results for fourth-quarter fiscal 2022. Quarterly revenues and non-GAAP earnings soared 63% and 131%, respectively, on a year-over-year basis.

The company added 1,638 net new subscription customers during the reported quarter. It had a total of 16,325 subscription customers as of Jan 31, 2022, reflecting year-over-year growth of 65%.

Considering CrowdStrike’s growth prospects, it makes sense to invest for long-term gains.

Other Stocks to Consider

Some other stocks from the broader technology sector worth considering amid the current market environment are Advanced Micro Devices and ON Semiconductor.

Advanced Micro Devices currently sports a Zacks Rank #1 and has a Growth Score of B. The Zacks Consensus Estimate for first-quarter 2022 earnings has been revised upward by 33.8% to 91 cents per share over the past 60 days. For 2022, earnings estimates have moved upward by 71 cents to $3.99 per share over the past 60 days.

Advanced Micro Devices’ earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 17%. Shares of AMD have declined 26% in the year-to-date period.

ON Semiconductor sports a Zacks Rank #1 and has a Growth Score of A at present. The Zacks Consensus Estimate for ON’s first-quarter 2022 earnings has been revised upward to $1.04 per share from $1.00 30 days ago. For 2022, earnings estimates have been revised upward by 7.2% to $4.16 per share in the past 30 days.

ON Semiconductor’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 16.3%. Shares of ON are down 15.1% YTD.

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