We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Analog Devices and Urban Outfitters have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – June 2, 2022 – Zacks Equity Research shares Analog Devices, Inc. (ADI - Free Report) as the Bull of the Day and Urban Outfitters, Inc. (URBN - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Diamondback Energy, Inc. (FANG - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) , and Matador Resources Company's (MTDR - Free Report) .
Analog Devices, Inc. is a leader in the analog semiconductor space that's aiming to compete against Texas Instruments for supremacy.
Analog Devices topped our second quarter fiscal 2022 financial results on May 18 and provided upbeat guidance in the face of ongoing supply chain bottlenecks and a slowing economy. ADI continues to benefit from larger secular changes in the economy such as electrification.
Growing in Key Areas
Semiconductor maker Analog Devices expanded its reach to help it challenge the biggest player in the analog space, Texas Instruments, when it completed its acquisition of Maxim Integrated in August 2021. Analog semiconductors are on the less flashy side of the booming chip industry that will remain the backbone of technology and arguably the entire economy for the foreseeable future.
Analog semiconductors play crucial roles in countless devices and industries that next-generation digital semiconductors cannot meet. Analog chips help handle information not easily understood with 1s and 0s, such as temperature, speed, sound, electrical currents, and much more.
Analog Devices and its beefed-up portfolio includes analog and mixed-signal, power management, as well as radio frequency, and digital and sensor technologies. ADI boasts around 125K customers globally for its over 75K products.Roughly half of Analog Devices' 2021 revenue came from clients in the industrial sector, with 20% in automotive, 15% in communications, and 16% in the consumer markets. Analog Devices executives expect to benefit over the long haul from the constant expansion of automation, electrification (such as electric vehicles and beyond), and advanced connectivity.
More specifically, ADI projects to grow within six broad areas: Industrial 4.0, automotive ecosystems, connectivity & data centers, digital healthcare, immersive consumer, and aerospace.
Recent Performance & Outlook
Analog Devices' revenue and adjusted earnings both climbed by roughly 31% in fiscal 2021, driven in part by its Maxim Integrated deal. Analog Devices beat our Q1 FY22 estimates in mid-February and raised its outlook. ADI then on May 18 topped our Q2 estimates and offered up guidance that came in well above Wall Street projections once again, even as countless companies across an array of industries lower their outlooks.
The company's FY22 consensus earnings estimate is up 11% from where it was, with FY23's outlook over 12% higher. This bottom-line positivity helps Analog Devices land a Zacks Rank #1 (Strong Buy) right now.
Current Zacks estimates call for ADI's revenue to climb another 62% this year to $11.8 billion and around 7% higher in FY23. Meanwhile, its adjusted earnings are projected to surge 43% and 9%, respectively. The slowing growth in 2023 reflects smoothed-out YoY comparison following its Maxim Integrated acquisition.
What Else?
Analog Devices stock has climbed 127% in the last five years to outpace the broader Zacks Tech sector's 90% and its Semi-Analog & Mixed Market's 111%. ADI shares have also fared far better recently than its tech peers, with the stock up 3% in the past 12 months compared to Tech's 16% fall and the S&P 500's 1% decline.
The stock hasn't been immune to the 2022 downturn, but it's only fallen 5%, while the market is down 14%. At around $165 per share, ADI trades 12% below its November records. This also provides the stock 25% upside to its Zacks consensus price target.
The downturn and its strong earnings outlook has Analog Devices trading right near its covid lows at 17.3X forward 12-month earnings. This also marks a discount to its industry and 10% value compared to its own five-year median. And ADI's Semiconductor - Analog and Mixed industry is in the top 8% of over 250 Zacks industries right now.
Bottom Line
Alongside its Zacks Rank #1 (Strong Buy), which is driven by its double-digit, post-earnings release EPS revisions, Wall Street is bullish on Analog Devices, with 75% of the brokerage recommendations Zacks has at either "Strong Buy" or "Buys," with nothing below a "Hold." Investors also get a nice bonus of a dividend from a growth-focused technology stock.
Analog Devices in February raised its dividend by 10%, which was its 19th raise in the last 18 years. ADI's dividend yields 1.8% right now to top many of its peers and the S&P 500's 1.4%.
Urban Outfitters, Inc. stock has plummeted over 40% in the last year, alongside its industry's 53% downturn.
The youth-focused apparel retailer fell short of Zacks earnings and revenue estimates on May 24. Urban Outfitters is one of the many victims of soaring prices and supply chain setbacks that have made running its fast-fashion operation extremely difficult.
Urban Decay?
Urban Outfitters is a clothing and apparel retailer that's expanded its reach into other areas. URBN operates a sizable brand portfolio that includes Anthropologie, Free People, its namesake segment, and more. Urban also owns a portfolio of wedding related-offerings, as well as what it calls a menus and venues segment.
Urban Outfitters and many of its established brick and mortar-focused peers in apparel retail have struggled to keep up with the quickly changing world of e-commerce and social-media retail. Urban has more competition than ever before from an array of upstarts and niche brands that thrive by marketing to URBN's core youth demographic.
Urban Outfitters stock is down 20% in the last 10 years, compared to the S&P 500's over 300% climb. URBN has gone on some wild up and down runs during this stretch. And potential investors should know that Urban Outfitters stock is pretty heavily shorted at the moment. This helps make URBN more of a trader's stock than a buy-and-hold investment.
Urban Outfitters posted somewhat solid first quarter results on May 24. But the company's second quarter consensus earnings estimate has tumbled from $1.00 to $0.73 per share since its report, with its current full-year figure down by roughly 18% and next year about 15% off the pace. "The impact of inflation on our costs of doing business more than offset the benefit of record revenues," CEO Richard Hayne said in prepared Q1 remarks.
Bottom Line
Urban Outfitters' downward EPS revisions help it grab a Zacks Rank #5 (Strong Sell) right now. Plus, its Retail - Apparel and Shoes space sits in the bottom 12% of over 250 Zacks industries.
URBN stock did pop on Wednesday. But it still might be best for investors to stay away from the retailer given its own issues and the negative forces dragging down its industry.
Additional content:
Boost Your Portfolio with These 3 Permian Explorers
So far this year, West Texas Intermediate oil price has improved more than 54%. Exploration and production businesses are thus witnessing significant gains on the back of a healthy crude price trajectory, with the energy sector already sprung back to life.
High Oil Price
West Texas Intermediate crude price, trading at more than $115 per barrel, has risen drastically in the past year. The significant rise in oil prices can be attributed to analysts' assumptions that the Ukraine war may be prolonged.
The recent surge in the commodity price is backed by the news that an accord has recently been reached by the European Union (EU) leaders to ban 90% of Russian crude. Thus, the EU will impose its harshest sanctions yet on Russia.
U.S. Shale Oil Production to Rise
In June, total oil production from shale resources in the United States will likely increase by 142,000 barrels per day to 8,761 thousand barrels per day (MBbl/D), per the U.S. Energy Information Administration (EIA). The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.
Of all the resources, Permian will witness the highest increase in daily oil production this month, according to the EIA's drilling productivity report. In the Permian, the EIA projects oil production to rise by 88,000 barrels per day to 5,219 MBbls/D in June.
Time to Bet on Permian Explorers
It has been crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices has raised the incentive to add stocks of companies operating in the most prolific basin.
3 Stocks to Buy Right Away
Since selecting the right companies with a footprint in the Permian from the stock universe is not an easy task, we are employing our proprietary Stock Screener to zero down on three prospective stocks. One of the stocks sports a Zacks Rank #1 (Strong Buy), while two carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Diamondback Energy, Inc. is a leading pure-play Permian operator, having a solid footprint in 423,000 net acres in the prolific Midland and Delaware sub-basins. Zacks #2 Ranked Diamondback Energy is guiding its oil production for 2022 almost flat compared with 2021 and is expecting its free cash flow to increase more than 49% this year.
The Zacks Consensus Estimate for Diamondback Energy's earnings per share for 2022 and 2023 has been revised upward in the past 30 days.
Pioneer Natural Resources Company has a strong presence in the low-cost oil-rich Midland basin — a sub-basin of the broader Permian. The #2 Ranked upstream energy player has a massive inventory of premium wells that will likely generate significant returns for the company.
Pioneer Natural is focused on returning capital to shareholders. This includes a substantial variable dividend along with a strong base dividend. PXD is also employing opportunistic share repurchases to reward shareholders.
Pioneer Natural has considerably lower exposure to debt capital than the composite stocks belonging to the industry. This reflects PXD's strong balance sheet on which the firm can rely to sail through the volatile energy businesses.
Improving oil prices is a boon for Matador Resources Company's upstream operations. This is because MTDR has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Favorable oil price is likely to aid it in increasing production volumes. For 2022, the upstream energy player with a Zacks Rank of 1 expects total production at 37,300 thousand barrels of oil equivalent (MBoE), higher than 31,454 MBoE in 2021. In fact, since 2019, total production has been increasing persistently, contributing to the top and the bottom line.
On another positive note, Matador plans to turn to sales a net of 69.7 wells this year, including operated and non-operated wells. Among the prime priorities that MTDR has set for this year are lowering debt levels, delivering free cashflows and maintaining or increasing dividends.
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.
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/performancefor information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Analog Devices and Urban Outfitters have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 2, 2022 – Zacks Equity Research shares Analog Devices, Inc. (ADI - Free Report) as the Bull of the Day and Urban Outfitters, Inc. (URBN - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Diamondback Energy, Inc. (FANG - Free Report) , Pioneer Natural Resources Company (PXD - Free Report) , and Matador Resources Company's (MTDR - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Analog Devices, Inc. is a leader in the analog semiconductor space that's aiming to compete against Texas Instruments for supremacy.
Analog Devices topped our second quarter fiscal 2022 financial results on May 18 and provided upbeat guidance in the face of ongoing supply chain bottlenecks and a slowing economy. ADI continues to benefit from larger secular changes in the economy such as electrification.
Growing in Key Areas
Semiconductor maker Analog Devices expanded its reach to help it challenge the biggest player in the analog space, Texas Instruments, when it completed its acquisition of Maxim Integrated in August 2021. Analog semiconductors are on the less flashy side of the booming chip industry that will remain the backbone of technology and arguably the entire economy for the foreseeable future.
Analog semiconductors play crucial roles in countless devices and industries that next-generation digital semiconductors cannot meet. Analog chips help handle information not easily understood with 1s and 0s, such as temperature, speed, sound, electrical currents, and much more.
Analog Devices and its beefed-up portfolio includes analog and mixed-signal, power management, as well as radio frequency, and digital and sensor technologies. ADI boasts around 125K customers globally for its over 75K products.Roughly half of Analog Devices' 2021 revenue came from clients in the industrial sector, with 20% in automotive, 15% in communications, and 16% in the consumer markets. Analog Devices executives expect to benefit over the long haul from the constant expansion of automation, electrification (such as electric vehicles and beyond), and advanced connectivity.
More specifically, ADI projects to grow within six broad areas: Industrial 4.0, automotive ecosystems, connectivity & data centers, digital healthcare, immersive consumer, and aerospace.
Recent Performance & Outlook
Analog Devices' revenue and adjusted earnings both climbed by roughly 31% in fiscal 2021, driven in part by its Maxim Integrated deal. Analog Devices beat our Q1 FY22 estimates in mid-February and raised its outlook. ADI then on May 18 topped our Q2 estimates and offered up guidance that came in well above Wall Street projections once again, even as countless companies across an array of industries lower their outlooks.
The company's FY22 consensus earnings estimate is up 11% from where it was, with FY23's outlook over 12% higher. This bottom-line positivity helps Analog Devices land a Zacks Rank #1 (Strong Buy) right now.
Current Zacks estimates call for ADI's revenue to climb another 62% this year to $11.8 billion and around 7% higher in FY23. Meanwhile, its adjusted earnings are projected to surge 43% and 9%, respectively. The slowing growth in 2023 reflects smoothed-out YoY comparison following its Maxim Integrated acquisition.
What Else?
Analog Devices stock has climbed 127% in the last five years to outpace the broader Zacks Tech sector's 90% and its Semi-Analog & Mixed Market's 111%. ADI shares have also fared far better recently than its tech peers, with the stock up 3% in the past 12 months compared to Tech's 16% fall and the S&P 500's 1% decline.
The stock hasn't been immune to the 2022 downturn, but it's only fallen 5%, while the market is down 14%. At around $165 per share, ADI trades 12% below its November records. This also provides the stock 25% upside to its Zacks consensus price target.
The downturn and its strong earnings outlook has Analog Devices trading right near its covid lows at 17.3X forward 12-month earnings. This also marks a discount to its industry and 10% value compared to its own five-year median. And ADI's Semiconductor - Analog and Mixed industry is in the top 8% of over 250 Zacks industries right now.
Bottom Line
Alongside its Zacks Rank #1 (Strong Buy), which is driven by its double-digit, post-earnings release EPS revisions, Wall Street is bullish on Analog Devices, with 75% of the brokerage recommendations Zacks has at either "Strong Buy" or "Buys," with nothing below a "Hold." Investors also get a nice bonus of a dividend from a growth-focused technology stock.
Analog Devices in February raised its dividend by 10%, which was its 19th raise in the last 18 years. ADI's dividend yields 1.8% right now to top many of its peers and the S&P 500's 1.4%.
Bear of the Day:
Urban Outfitters, Inc. stock has plummeted over 40% in the last year, alongside its industry's 53% downturn.
The youth-focused apparel retailer fell short of Zacks earnings and revenue estimates on May 24. Urban Outfitters is one of the many victims of soaring prices and supply chain setbacks that have made running its fast-fashion operation extremely difficult.
Urban Decay?
Urban Outfitters is a clothing and apparel retailer that's expanded its reach into other areas. URBN operates a sizable brand portfolio that includes Anthropologie, Free People, its namesake segment, and more. Urban also owns a portfolio of wedding related-offerings, as well as what it calls a menus and venues segment.
Urban Outfitters and many of its established brick and mortar-focused peers in apparel retail have struggled to keep up with the quickly changing world of e-commerce and social-media retail. Urban has more competition than ever before from an array of upstarts and niche brands that thrive by marketing to URBN's core youth demographic.
Urban Outfitters stock is down 20% in the last 10 years, compared to the S&P 500's over 300% climb. URBN has gone on some wild up and down runs during this stretch. And potential investors should know that Urban Outfitters stock is pretty heavily shorted at the moment. This helps make URBN more of a trader's stock than a buy-and-hold investment.
Urban Outfitters posted somewhat solid first quarter results on May 24. But the company's second quarter consensus earnings estimate has tumbled from $1.00 to $0.73 per share since its report, with its current full-year figure down by roughly 18% and next year about 15% off the pace. "The impact of inflation on our costs of doing business more than offset the benefit of record revenues," CEO Richard Hayne said in prepared Q1 remarks.
Bottom Line
Urban Outfitters' downward EPS revisions help it grab a Zacks Rank #5 (Strong Sell) right now. Plus, its Retail - Apparel and Shoes space sits in the bottom 12% of over 250 Zacks industries.
URBN stock did pop on Wednesday. But it still might be best for investors to stay away from the retailer given its own issues and the negative forces dragging down its industry.
Additional content:
Boost Your Portfolio with These 3 Permian Explorers
So far this year, West Texas Intermediate oil price has improved more than 54%. Exploration and production businesses are thus witnessing significant gains on the back of a healthy crude price trajectory, with the energy sector already sprung back to life.
High Oil Price
West Texas Intermediate crude price, trading at more than $115 per barrel, has risen drastically in the past year. The significant rise in oil prices can be attributed to analysts' assumptions that the Ukraine war may be prolonged.
The recent surge in the commodity price is backed by the news that an accord has recently been reached by the European Union (EU) leaders to ban 90% of Russian crude. Thus, the EU will impose its harshest sanctions yet on Russia.
U.S. Shale Oil Production to Rise
In June, total oil production from shale resources in the United States will likely increase by 142,000 barrels per day to 8,761 thousand barrels per day (MBbl/D), per the U.S. Energy Information Administration (EIA). The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.
Of all the resources, Permian will witness the highest increase in daily oil production this month, according to the EIA's drilling productivity report. In the Permian, the EIA projects oil production to rise by 88,000 barrels per day to 5,219 MBbls/D in June.
Time to Bet on Permian Explorers
It has been crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices has raised the incentive to add stocks of companies operating in the most prolific basin.
3 Stocks to Buy Right Away
Since selecting the right companies with a footprint in the Permian from the stock universe is not an easy task, we are employing our proprietary Stock Screener to zero down on three prospective stocks. One of the stocks sports a Zacks Rank #1 (Strong Buy), while two carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Diamondback Energy, Inc. is a leading pure-play Permian operator, having a solid footprint in 423,000 net acres in the prolific Midland and Delaware sub-basins. Zacks #2 Ranked Diamondback Energy is guiding its oil production for 2022 almost flat compared with 2021 and is expecting its free cash flow to increase more than 49% this year.
The Zacks Consensus Estimate for Diamondback Energy's earnings per share for 2022 and 2023 has been revised upward in the past 30 days.
Pioneer Natural Resources Company has a strong presence in the low-cost oil-rich Midland basin — a sub-basin of the broader Permian. The #2 Ranked upstream energy player has a massive inventory of premium wells that will likely generate significant returns for the company.
Pioneer Natural is focused on returning capital to shareholders. This includes a substantial variable dividend along with a strong base dividend. PXD is also employing opportunistic share repurchases to reward shareholders.
Pioneer Natural has considerably lower exposure to debt capital than the composite stocks belonging to the industry. This reflects PXD's strong balance sheet on which the firm can rely to sail through the volatile energy businesses.
Improving oil prices is a boon for Matador Resources Company's upstream operations. This is because MTDR has a strong presence in oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Favorable oil price is likely to aid it in increasing production volumes. For 2022, the upstream energy player with a Zacks Rank of 1 expects total production at 37,300 thousand barrels of oil equivalent (MBoE), higher than 31,454 MBoE in 2021. In fact, since 2019, total production has been increasing persistently, contributing to the top and the bottom line.
On another positive note, Matador plans to turn to sales a net of 69.7 wells this year, including operated and non-operated wells. Among the prime priorities that MTDR has set for this year are lowering debt levels, delivering free cashflows and maintaining or increasing dividends.
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/performancefor information about the performance numbers displayed in this press release.