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Continental Resources and PLBY Group have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – April 19, 2022 – Zacks Equity Research shares Continental Resources as the Bull of the Day and PLBY Group (PLBY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Airlines (AAL - Free Report) , Southwest Airlines (LUV - Free Report) and Gol Linhas Aéreas Inteligentes S.A. .
There have been some mega trends in the market recently. The inflationary pressure has really helped the commodity complex. Whether its wheat, oil, or soybeans, things have been good for the bulls over there. It has helped to push along the stocks in commodity-related industries. No one knows how long this trend will continue, so let's just enjoy it while it lasts.
One way I am going to enjoy it is by naming today's Bull of the Day a stock within the oil business. I'm talking about Zacks Rank #1 (Strong Buy) Continental Resources. Continental Resources, Inc. explores for, develops, produces, and manages crude oil, natural gas, and related products primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2021, its proved reserves were 1,645 million barrels of crude oil equivalent (MMBoe) with proved developed reserves of 908 MMBoe.
Continental Resources is a Zacks Rank #1 (Strong Buy) in the Oil and Gas – Exploration and Production – United States industry which ranks in the Top 7% of our Zacks Industry Rank. The reason for the favorable rank is several analysts increasing their earnings estimates for the stock. Over the last sixty days, eight analysts have increased their earnings estimates for the current year while four have followed suit for next year.
The bullish sentiment has made a huge impact to our Zacks Consensus Estimates for the current year and next year. Over the last 90 days, the current year Zacks Consensus Estimate is up from $6.95 to $9.89 while next year's number is up from $5.45 to $8.62.
Those numbers represent 112.23% EPS growth for the current year. That number is expected to slow as oil prices come back down to Earth. The revenue growth for the current year is 50.41%, while next year is expected to contract by just 4.5% to $8.22 billion.
For a fleeting moment there, every stock that had potential to bring NFTs to market were en vogue. It did not matter what it was, as risk capital was trying to get ahead of the curve and buy the next biggest thing. It went way further than stoned apes. Today's Bear of the Day was a stock that really had some promise in this budding market. It is one of the largest names in the publication business and was finally finding its way back out from under the bed. And trust me, I read it for the articles.
I am talking about PLBY Group. The company operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. It offers sexual wellness products, such as products that enhance sexual experience, lingerie, bedroom accessories, intimates, and adult content; style and apparel products for men and women; gaming and lifestyle products, including digital casino and social games, and other home and hospitality offerings; and beauty and grooming products for men and women, such as skincare, haircare, bath and body, grooming, cosmetics, and fragrance. The company offers its products under its flagship brand, Playboy.
The bad news for investors is that Playboy is currently a Zacks Rank #5 (Strong Sell) in the Leisure and Recreation Products industry which ranks in the Bottom 30% of our Zacks Industry Rank. PLBY Group, Inc. operates as a pleasure and leisure company worldwide.
The numbers are not all bad here. In fact, I could make a good bull case built on revenue and EPS growth. Current year revenue growth calls for 41.95% year-over-year growth while next year is slated to come in at 21.2%. EPS growth looks just as good, if not better, with 123% growth for the current year and 104% growth for next year. So what gives?
Well, it's the recent trend that is troubling. Taking a look at analysts' estimates on Wall Street, the numbers have been contracting across the board. Our current year Zacks Consensus Estimate is off from 60 cents to 32 cents while next year's number is off from 88 cents to 65 cents. That's the reason for the Zacks Rank #5 (Strong Sell).
Additional content:
Expect Earnings Beats from These 3 Airlines in Q1
Delta kicked off the first-quarter 2022 earnings season for the airline industry on Apr 13, 2022. This Atlanta-based carrier reported a loss with Omicron disrupting travel plans in the early part of the March quarter.
Nevertheless, with the threat of the Omicron variant subsiding, air-travel demand was exceptionally strong in March this year. Upbeat demand led to DAL earning a profit in the month with the adjusted operating margin reaching almost 10%. Also, driven by buoyant demand, Delta issued a bright outlook for the second quarter of 2022.
We expect the air-travel demand (mainly for leisure) uptick to have bolstered passenger revenues for the airline companies yet to report their financial numbers for the March quarter. However, high fuel costs are likely to have hurt their bottom-line performances. Consequently, oil price escalated 33% in first-quarter 2022, induced by the Russia-Ukraine war.
With the presence of a universe of industry participants, the task of finding the perfect airline stocks with a potential to outperform on the bottom line front can be daunting. But our proprietary methodology makes this job a cakewalk.
The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines, Southwest Airlines and Gol Linhas Aéreas Inteligentes S.A., all poised to outshine the Zacks Consensus Estimate this earnings season. These stocks have the ideal combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP is part of our quantitative model to determine the stocks with maximum chances of beating estimates in their impending earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that the odds of a positive earnings surprise are as high as 70% for the stocks with this apt combination of elements.
Recently, American Airlines' management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. Total revenues are likely to decline approximately 16% in first-quarter 2022 from the comparable period's level in 2019.
This is better than AAL's previous view of an approximate decrease of 17%. However, due to the Russia-Ukraine war, fuel prices are soaring. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. AAL is slated to report first-quarter results on Apr 21.
Southwest Airlines is based in Dallas. LUV has an Earnings ESP of +24.66% and a Zacks Rank of 3, currently. LUV is slated to report first-quarter results on Apr 28.
Last month, Southwest Airlines' management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. LUV now expects first-quarter operating revenues to be 8-10% below the first-quarter 2019 levels. The same is better than the prior anticipation of a 10-15% fall.
Capacity is expected to be down 9-10% from the first-quarter 2019 actuals. The same indicates a marginal deterioration from the earlier expectation of a 9% decline. Non-fuel unit costs are now expected to increase in the 20-24% range from the first quarter 2019 actuals (previous guidance called for a rise in the band of 17-21%). On a positive note, owing to LUV's multi-year fuel hedging program, it is insured against spikes in jet fuel prices like the current scenario.
Gol Linhas is a Brazilian carrier. GOL has an Earnings ESP of +210.96% and is Zacks #3 Ranked, currently. GOL is slated to report first-quarter results on Apr 28.
With air-travel demand picking up in Latin America, Gol Linhas expects total demand or air traffic (measured in revenue passenger kilometers) to be up 46% year over year in the first quarter of 2022. To meet increasing demand, GOL is boosting capacity.
GOL expects total capacity (measured in available seat kilometers) for the March quarter to be up 44%. Seats are likely to increase 49%. Owing to the uptick in total demand, GOL expects first-quarter passenger unit revenues to increase roughly 45% year over year. EBITDA margin is likely to increase approximately 11%.
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.
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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Continental Resources and PLBY Group have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 19, 2022 – Zacks Equity Research shares Continental Resources as the Bull of the Day and PLBY Group (PLBY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Airlines (AAL - Free Report) , Southwest Airlines (LUV - Free Report) and Gol Linhas Aéreas Inteligentes S.A. .
Here is a synopsis of all five stocks:
Bull of the Day:
There have been some mega trends in the market recently. The inflationary pressure has really helped the commodity complex. Whether its wheat, oil, or soybeans, things have been good for the bulls over there. It has helped to push along the stocks in commodity-related industries. No one knows how long this trend will continue, so let's just enjoy it while it lasts.
One way I am going to enjoy it is by naming today's Bull of the Day a stock within the oil business. I'm talking about Zacks Rank #1 (Strong Buy) Continental Resources. Continental Resources, Inc. explores for, develops, produces, and manages crude oil, natural gas, and related products primarily in the north, south, and east regions of the United States. The company sells its crude oil and natural gas production to energy marketing companies, crude oil refining companies, and natural gas gathering and processing companies. As of December 31, 2021, its proved reserves were 1,645 million barrels of crude oil equivalent (MMBoe) with proved developed reserves of 908 MMBoe.
Continental Resources is a Zacks Rank #1 (Strong Buy) in the Oil and Gas – Exploration and Production – United States industry which ranks in the Top 7% of our Zacks Industry Rank. The reason for the favorable rank is several analysts increasing their earnings estimates for the stock. Over the last sixty days, eight analysts have increased their earnings estimates for the current year while four have followed suit for next year.
The bullish sentiment has made a huge impact to our Zacks Consensus Estimates for the current year and next year. Over the last 90 days, the current year Zacks Consensus Estimate is up from $6.95 to $9.89 while next year's number is up from $5.45 to $8.62.
Those numbers represent 112.23% EPS growth for the current year. That number is expected to slow as oil prices come back down to Earth. The revenue growth for the current year is 50.41%, while next year is expected to contract by just 4.5% to $8.22 billion.
Bear of the Day:
For a fleeting moment there, every stock that had potential to bring NFTs to market were en vogue. It did not matter what it was, as risk capital was trying to get ahead of the curve and buy the next biggest thing. It went way further than stoned apes. Today's Bear of the Day was a stock that really had some promise in this budding market. It is one of the largest names in the publication business and was finally finding its way back out from under the bed. And trust me, I read it for the articles.
I am talking about PLBY Group. The company operates through three segments: Licensing, Direct-to-Consumer, and Digital Subscriptions and Content. It offers sexual wellness products, such as products that enhance sexual experience, lingerie, bedroom accessories, intimates, and adult content; style and apparel products for men and women; gaming and lifestyle products, including digital casino and social games, and other home and hospitality offerings; and beauty and grooming products for men and women, such as skincare, haircare, bath and body, grooming, cosmetics, and fragrance. The company offers its products under its flagship brand, Playboy.
The bad news for investors is that Playboy is currently a Zacks Rank #5 (Strong Sell) in the Leisure and Recreation Products industry which ranks in the Bottom 30% of our Zacks Industry Rank. PLBY Group, Inc. operates as a pleasure and leisure company worldwide.
The numbers are not all bad here. In fact, I could make a good bull case built on revenue and EPS growth. Current year revenue growth calls for 41.95% year-over-year growth while next year is slated to come in at 21.2%. EPS growth looks just as good, if not better, with 123% growth for the current year and 104% growth for next year. So what gives?
Well, it's the recent trend that is troubling. Taking a look at analysts' estimates on Wall Street, the numbers have been contracting across the board. Our current year Zacks Consensus Estimate is off from 60 cents to 32 cents while next year's number is off from 88 cents to 65 cents. That's the reason for the Zacks Rank #5 (Strong Sell).
Additional content:
Expect Earnings Beats from These 3 Airlines in Q1
Delta kicked off the first-quarter 2022 earnings season for the airline industry on Apr 13, 2022. This Atlanta-based carrier reported a loss with Omicron disrupting travel plans in the early part of the March quarter.
Nevertheless, with the threat of the Omicron variant subsiding, air-travel demand was exceptionally strong in March this year. Upbeat demand led to DAL earning a profit in the month with the adjusted operating margin reaching almost 10%. Also, driven by buoyant demand, Delta issued a bright outlook for the second quarter of 2022.
We expect the air-travel demand (mainly for leisure) uptick to have bolstered passenger revenues for the airline companies yet to report their financial numbers for the March quarter. However, high fuel costs are likely to have hurt their bottom-line performances. Consequently, oil price escalated 33% in first-quarter 2022, induced by the Russia-Ukraine war.
With the presence of a universe of industry participants, the task of finding the perfect airline stocks with a potential to outperform on the bottom line front can be daunting. But our proprietary methodology makes this job a cakewalk.
The Zacks Stock Screener helped us identify three airline stocks namely, American Airlines, Southwest Airlines and Gol Linhas Aéreas Inteligentes S.A., all poised to outshine the Zacks Consensus Estimate this earnings season. These stocks have the ideal combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), 3 (Hold) — to surpass expectations. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Earnings ESP is part of our quantitative model to determine the stocks with maximum chances of beating estimates in their impending earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. Our research shows that the odds of a positive earnings surprise are as high as 70% for the stocks with this apt combination of elements.
Potential Q1 Outperformers
American Airlinesis based in Fort Worth, TX. AAL has an Earnings ESP of +1.54% and a Zacks Rank #3, currently. You can see the complete list of today's Zacks #1 Rank stocks here.
Recently, American Airlines' management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. Total revenues are likely to decline approximately 16% in first-quarter 2022 from the comparable period's level in 2019.
This is better than AAL's previous view of an approximate decrease of 17%. However, due to the Russia-Ukraine war, fuel prices are soaring. AAL now estimates fuel cost per gallon to be $2.80-$2.85 in the first quarter compared with $2.73-$2.78 anticipated previously. AAL is slated to report first-quarter results on Apr 21.
American Airlines Group Inc. price-eps-surprise | American Airlines Group Inc. Quote
Southwest Airlines is based in Dallas. LUV has an Earnings ESP of +24.66% and a Zacks Rank of 3, currently. LUV is slated to report first-quarter results on Apr 28.
Last month, Southwest Airlines' management gave an improved total revenue guidance for the first quarter as air-travel demand continues to rebound. LUV now expects first-quarter operating revenues to be 8-10% below the first-quarter 2019 levels. The same is better than the prior anticipation of a 10-15% fall.
Capacity is expected to be down 9-10% from the first-quarter 2019 actuals. The same indicates a marginal deterioration from the earlier expectation of a 9% decline. Non-fuel unit costs are now expected to increase in the 20-24% range from the first quarter 2019 actuals (previous guidance called for a rise in the band of 17-21%). On a positive note, owing to LUV's multi-year fuel hedging program, it is insured against spikes in jet fuel prices like the current scenario.
Southwest Airlines Co. price-eps-surprise | Southwest Airlines Co. Quote
Gol Linhas is a Brazilian carrier. GOL has an Earnings ESP of +210.96% and is Zacks #3 Ranked, currently. GOL is slated to report first-quarter results on Apr 28.
With air-travel demand picking up in Latin America, Gol Linhas expects total demand or air traffic (measured in revenue passenger kilometers) to be up 46% year over year in the first quarter of 2022. To meet increasing demand, GOL is boosting capacity.
GOL expects total capacity (measured in available seat kilometers) for the March quarter to be up 44%. Seats are likely to increase 49%. Owing to the uptick in total demand, GOL expects first-quarter passenger unit revenues to increase roughly 45% year over year. EBITDA margin is likely to increase approximately 11%.
Gol Linhas Aereas Inteligentes S.A. price-eps-surprise | Gol Linhas Aereas Inteligentes S.A. Quote
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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.