Back to top

Image: Shutterstock

Target Hospitality and Big Lots have been highlighted as Zacks Bull and Bear of the Day

Read MoreHide Full Article

For Immediate Release

Chicago, IL – March 23, 2022 – Zacks Equity Research shares Target Hospitality (TH - Free Report) as the Bull of the Day and Big Lots (BIG - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Pfizer (PFE - Free Report) , BioNTech (BNTX - Free Report) and Moderna (MRNA - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

The market has managed to dig itself out of a nasty hole recently. Call it oversold, a bear-market rally or a dead-cat bounce if you want to be negative about it. The fact of the matter is, the last several trading days have been great. Folks who are not in on the rally are the ones most likely to thumb their nose at it. There are some stocks that have been rocking since the start of the month and have strong earnings trends to back up the moves.

One such stock is today's Bull of the Day, Target Hospitality. Target Hospitality Corp. operates as a specialty rental and hospitality services company in North America. The company operates through four segments: Hospitality & Facilities Services - South, Hospitality & Facilities Services - Midwest, Government, and TCPL Keystone. It owns a network of specialty rental accommodation units with approximately 15,528 beds across 27 communities, which include 26 owned and 1 leased; and operates 1 community not owned or leased by the company. 

Target Hospitality is a Zacks Rank #1 (Strong Buy) in the Leisure and Recreation Services industry which ranks in the Top 45% of our Zacks Industry Rank. In addition to the favorable rank, TH enjoys a Zacks Value Style Score of C, Growth of A, and Momentum of A to help it round out with a VGM Composite Score of A. The reason for the Zacks Rank #1 (Strong Buy) is that two analysts on Wall Street have increased their earnings estimates for the current year and next year. The bullish moves have increased our Zacks Consensus Estimates for the current year from 6 cents to 9 cents while next year's number is up from 9 cents to 11 cents.

Bear of the Day:

Retail is a tough gig no matter how you look at it. One day you are the biggest, brightest star on the block and the next day you are gone and forgotten. With the shift towards online and unexpected global pandemics sinking the brick-and-mortar economy, it has become nearly impossible to thrive. Throw in some inflation here and now you have yet another issue retailers are facing.

These sorts of issues are reflected in earnings estimates coming from analysts all over Wall Street. Bearish sentiment comes in the form of analysts dropping those numbers. Get enough analysts moving to the downside and you get stocks which are not in the good graces of our Zacks Rank. Stocks like today's Bear of the Day, Big Lots.

Big Lots, Inc., through its subsidiaries, operates as a retailer in the United States. The company offers products under various merchandising categories, such as furniture, seasonal category, utility bedding, bath, window, decorative textile, home organization, area rugs, and food.

The reason for the unfavorable Zacks Rank is the series of negative earnings revisions coming from analysts. Over the last thirty days, five analysts have cut their estimates for the current year, with only one ticking to the upside, while next year's numbers have been cut by three analysts. The bearish sentiment has cut down our Zacks Consensus Estimate for the current year from $5.70 to $4.91 while next year's number is off from $6.35 to $5.57.

The Retail – Discount Stores industry ranks in the Bottom 22% of our Zacks Industry Rank.

Additional content:

FDA Panel to Discuss 4th Booster Dose at April Meeting

On Monday, the FDA announced that it will hold an advisory committee meeting on Apr 6 to discuss the need for future boosters of authorized COVID-19 vaccines.

The agenda of the Vaccines and Related Biological Products Advisory Committee (VRBPAC) will be to discuss how the composition of present COVID-19 vaccines needs to be changed to address specific variants. The committee will also guide the FDA on when the COVID-19 vaccine booster doses should be given and to which age group. However, the committee members will not cast any vote at the meeting nor will they discuss any specific company's vaccine applications.

Apart from the committee's panel of expert scientific external advisors, representatives from the U.S. Centers for Disease Control and Prevention and the National Institutes of Health will also take part in the meeting

The news comes just days after Pfizer/BioNTech and Moderna applied to the FDA to amend their existing Emergency Use Authorization (EUA) to allow an additional or the "fourth" booster dose of their COVID-19 vaccine. While Pfizer has applied for authorization in adults 65 years of age and older, Moderna is seeking authorization for all adults aged 18 years and above.

Per Moderna, the reason for seeking approval for the second booster dose in the 18 years and older age bracket is to provide flexibility for the healthcare authorities to determine the appropriate use of the second booster dose of its COVID-19 vaccine in relevant patient groups.

Pfizer and BioNTech and Moderna's applications were based on safety and efficacy data from real-world studies from Israel when the Omicron variant was widely prevalent. Pfizer/BioNTech said that data from these studies showed that in individuals who were given the fourth shot, the rates of infections were two times lower and rates of severe illness were four times lower compared to those who only received the third booster shot.

Pfizer and BioNTech's booster dose or "third dose" has been granted EUA for all adults 18 years of age and older, following the completion of primary vaccination with any FDA-authorized or approved COVID-19 vaccine. Later, the EUA was extended to allow its use in individuals 16 and 17 years of age and thereafter in adolescents 12 to 15 years of age.

A booster dose of Moderna's vaccine has been granted EUA for use in all adults in the United States at least six months after the completion of primary vaccination with any FDA-authorized or approved COVID-19 vaccine.

The rising infection rates in China and Europe due to BA.2, the Omicron subvariant and the emergence of a new variant Deltacron, a hybrid of the Omicron and Delta variants, in the United States and Europe, have triggered fresh concerns of a possible new wave of infections.

For individuals to be adequately protected, additional booster doses of COVID vaccines are needed as the immunity offered by the third dose eventually fades three to six months after receiving it. However, the need for additional booster doses for young healthy people has been frequently debated.

The VRBPAC meeting will likely give an insight into how the regulatory agency feels about the need for boosters.

Pfizer, Moderna and BioNTech have a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Why Haven't You Looked at Zacks' Top Stocks?

Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

https://www.zacks.com

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.