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Texas Pacific and Emerson Electric have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – December 13, 2022 – Zacks Equity Research shares Texas Pacific Land Corp. (TPL - Free Report) as the Bull of the Day and Emerson Electric Co. (EMR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Caesars Entertainment, Inc. (CZR - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and Live Nation Entertainment, Inc. (LYV - Free Report) .
The Zacks Oils and Energy sector has been the best place to hide out in 2022, up more than 30% vs. the S&P 500’s 17% decline.
A company residing in the realm, Texas Pacific Land Corp., has seen its near-term earnings outlook turn visibly bright over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Texas Pacific Land is one of the largest landowners in Texas that operates under two business segments: Land and Resource Management and Water Services and Operations. Let’s take a closer look at how the company currently stacks up.
Share Performance & Quarterly Results
TPL shares have been scorching hot year-to-date, up more than a triple-digit 100% and crushing the S&P 500’s performance.
And just over the last three months, TPL shares are up more than 40%, again outperforming the general market.
Additionally, the company has delivered better-than-expected quarterly results as of late, exceeding earnings and revenue estimates in back-to-back quarters.
Just in its latest release, TPL registered a 17% bottom-line beat paired with an 8.8% sales surprise.
Growth Outlook
The company has a favorable growth profile; for its current fiscal year (FY22), the Zacks Consensus EPS Estimate of $59.96 indicates a sizable 72% Y/Y uptick. And in FY23, TPL’s bottom-line is forecasted to grow a further 5.5% Y/Y.
TPL’s top-line is also in solid standing, with revenue estimates calling for 53% Y/Y growth in FY22 and 14% in FY23.
Dividends
Who doesn’t like to get paid?
For those with an appetite for income, TPL has that covered; the company’s annual dividend yields a modest 0.5%, below its Zacks sector average by a fair margin.
Still, the company’s impressive 108% five-year annualized dividend growth rate helps to pick up the slack in a big way.
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Texas Pacific Land would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
The Zacks Industrial Products Sector has displayed resiliency in 2022, down roughly 11% and outperforming the general market by a fair margin.
One company residing in the realm that many are familiar with, Emerson Electric Co., has seen its near-term earnings outlook turn negative over the last several months, pushing it into a Zacks Rank #5 (Strong Sell).
Emerson Electric Co. is a diversified global engineering and technology company providing a wide range of products and services to customers in consumer, commercial and industrial markets. Let’s take a closer look at how the company shapes up.
Share Performance & Valuation
Although the company’s earnings outlook has shifted sour over the last several months, EMR shares have outperformed in 2022, up a respectable 5% vs. the S&P 500’s 17% decline.
Further, EMR shares currently trade at a 23.1X forward earnings multiple, above the 20.1X five-year median and its Zacks Industrial Products sector average of 18.0X.
Emerson Electric currently carries a Value Style Score of an F.
Growth Outlook
EMR’s growth profile leaves some to be desired; for its current fiscal year, the Zacks Consensus EPS Estimate of $4.08 suggests a 22% decline year-over-year. Pivoting to the top-line, estimates indicate a 24% year-over-year pullback.
Still, the growth picks back up in FY24, with estimates calling for 10% earnings growth and a 6.7% uptick in revenue.
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a less-than-ideal picture for the company in the short term.
Emerson Electric is a Zacks Rank #5 (Strong Sell), telling us it has a weak near-term earnings outlook.
Investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – these stocks have a much stronger earnings outlook and potential to deliver explosive gains in the short-term.
Additional content:
3 Beaten-Down Entertainment Stocks Poised for a Turnaround in 2023
Although the broader economy gradually overcame the pandemic-induced uncertainties this year, inflationary pressures have again sent investors into the back seat. Supply chain headwinds and the geopolitical environment are also hurting most industries.
Worries about a global slowdown and a possible recession loom over the stock market. Market pundits fear that the Federal Reserve’s hawkish stance to tame inflation might push the economy into a recession. A high inflation rate continues to hurt the industry. Inflation in the United States is proving to be much more stubborn than expected.
However, Fed chairman Jerome Powell’s recent comment about lowering the magnitude of the rate hike from December has come as a breather. It is expected that the Fed would spike the interest rates by 50 basis points this time instead of 75 basis points.
Year to date, Leisure and Recreation Services industry has declined 36.5%, compared with the S&P 500 decrease of 18.7%. Against the current market meltdowns, all the major market indices are in bear territory. Beaten-down stocks like Caesars Entertainment, Inc., AMC Entertainment Holdings, Inc. and Live Nation Entertainment, Inc. are currently available at low prices and are likely to make a U-turn in 2023. These stocks have sound fundamentals, which will help drive their share price in 2023.
3 Hidden Gems to Bet On
Caesars Entertainment: Caesars Entertainment is a diversified gaming and hospitality company based in Reno, NV. The Zacks Rank #2 (Buy) stock has declined 47.2% compared with the S&P 500’s fall of 18.7% and has a VGM score of A. In 2023, the company’s sales and earnings are anticipated to increase 5.6% and 131.5%, respectively, year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company is optimistic about the booking trends as it is witnessing increased bookings for group and convention room nights. The company anticipates an uptrend in bookings to continue in 2023. CZR is focused on sports betting expansion to drive growth. To this end, the company formed a new Caesars Digital segment comprising sports betting, iGaming and poker.
The company integrated its digital offerings with Caesars Rewards at online and physical casinos. As of Sep 30, the company operates sports betting in 27 jurisdictions, 19 of which are mobile. Also, it stated the availability of iGaming offerings in 5 jurisdictions.
AMC Entertainment: Headquartered in Leawood, KS, the company engages in the theatrical exhibition business. The company is benefiting from an increase in global attendance. AMC Entertainment is making comprehensive health and sanitation programs, which include enhanced cleaning procedures and upgraded air filtration efforts, to ensure maximum safety for guests.
The Zacks Rank #2 company’s shares have declined 78.1% year to date. However, the company’s robust earnings and sales growth rate for 2023 is likely to drive the stock higher. In 2023, the company’s earnings and sales are expected to witness growth of 17.3% and 72.5%, respectively, year over year.
Live Nation Entertainment: Headquartered in Beverly Hills, CA, Live Nation Entertainment operates as a live entertainment company. Although the Zacks Rank #3 (Hold) company’s shares have declined 40%, it has a VGM score of B. In 2023, the company’s sales and earnings are anticipated to increase 3.9% and 121.7%, respectively, year over year.
The company is likely to benefit from pent-up demand for live events and robust ticket sales. This and the increased demand for digital ticketing and contactless transactions bode well. The company is optimistic about its growth prospects in 2023. Emphasis on cost-saving efforts bodes well. For shows in 2023, the company is witnessing even stronger ticket sales. In 2023, the company expects to add more venues to its operating portfolio. In terms of tickets, the company is likely to benefit from the market pricing trend.
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/performance for information about the performance numbers displayed in this press release.
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Texas Pacific and Emerson Electric have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – December 13, 2022 – Zacks Equity Research shares Texas Pacific Land Corp. (TPL - Free Report) as the Bull of the Day and Emerson Electric Co. (EMR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Caesars Entertainment, Inc. (CZR - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and Live Nation Entertainment, Inc. (LYV - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
The Zacks Oils and Energy sector has been the best place to hide out in 2022, up more than 30% vs. the S&P 500’s 17% decline.
A company residing in the realm, Texas Pacific Land Corp., has seen its near-term earnings outlook turn visibly bright over the last several months, pushing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Texas Pacific Land is one of the largest landowners in Texas that operates under two business segments: Land and Resource Management and Water Services and Operations. Let’s take a closer look at how the company currently stacks up.
Share Performance & Quarterly Results
TPL shares have been scorching hot year-to-date, up more than a triple-digit 100% and crushing the S&P 500’s performance.
And just over the last three months, TPL shares are up more than 40%, again outperforming the general market.
Additionally, the company has delivered better-than-expected quarterly results as of late, exceeding earnings and revenue estimates in back-to-back quarters.
Just in its latest release, TPL registered a 17% bottom-line beat paired with an 8.8% sales surprise.
Growth Outlook
The company has a favorable growth profile; for its current fiscal year (FY22), the Zacks Consensus EPS Estimate of $59.96 indicates a sizable 72% Y/Y uptick. And in FY23, TPL’s bottom-line is forecasted to grow a further 5.5% Y/Y.
TPL’s top-line is also in solid standing, with revenue estimates calling for 53% Y/Y growth in FY22 and 14% in FY23.
Dividends
Who doesn’t like to get paid?
For those with an appetite for income, TPL has that covered; the company’s annual dividend yields a modest 0.5%, below its Zacks sector average by a fair margin.
Still, the company’s impressive 108% five-year annualized dividend growth rate helps to pick up the slack in a big way.
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Texas Pacific Land would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
The Zacks Industrial Products Sector has displayed resiliency in 2022, down roughly 11% and outperforming the general market by a fair margin.
One company residing in the realm that many are familiar with, Emerson Electric Co., has seen its near-term earnings outlook turn negative over the last several months, pushing it into a Zacks Rank #5 (Strong Sell).
Emerson Electric Co. is a diversified global engineering and technology company providing a wide range of products and services to customers in consumer, commercial and industrial markets. Let’s take a closer look at how the company shapes up.
Share Performance & Valuation
Although the company’s earnings outlook has shifted sour over the last several months, EMR shares have outperformed in 2022, up a respectable 5% vs. the S&P 500’s 17% decline.
Further, EMR shares currently trade at a 23.1X forward earnings multiple, above the 20.1X five-year median and its Zacks Industrial Products sector average of 18.0X.
Emerson Electric currently carries a Value Style Score of an F.
Growth Outlook
EMR’s growth profile leaves some to be desired; for its current fiscal year, the Zacks Consensus EPS Estimate of $4.08 suggests a 22% decline year-over-year. Pivoting to the top-line, estimates indicate a 24% year-over-year pullback.
Still, the growth picks back up in FY24, with estimates calling for 10% earnings growth and a 6.7% uptick in revenue.
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a less-than-ideal picture for the company in the short term.
Emerson Electric is a Zacks Rank #5 (Strong Sell), telling us it has a weak near-term earnings outlook.
Investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – these stocks have a much stronger earnings outlook and potential to deliver explosive gains in the short-term.
Additional content:
3 Beaten-Down Entertainment Stocks Poised for a Turnaround in 2023
Although the broader economy gradually overcame the pandemic-induced uncertainties this year, inflationary pressures have again sent investors into the back seat. Supply chain headwinds and the geopolitical environment are also hurting most industries.
Worries about a global slowdown and a possible recession loom over the stock market. Market pundits fear that the Federal Reserve’s hawkish stance to tame inflation might push the economy into a recession. A high inflation rate continues to hurt the industry. Inflation in the United States is proving to be much more stubborn than expected.
However, Fed chairman Jerome Powell’s recent comment about lowering the magnitude of the rate hike from December has come as a breather. It is expected that the Fed would spike the interest rates by 50 basis points this time instead of 75 basis points.
Year to date, Leisure and Recreation Services industry has declined 36.5%, compared with the S&P 500 decrease of 18.7%. Against the current market meltdowns, all the major market indices are in bear territory. Beaten-down stocks like Caesars Entertainment, Inc., AMC Entertainment Holdings, Inc. and Live Nation Entertainment, Inc. are currently available at low prices and are likely to make a U-turn in 2023. These stocks have sound fundamentals, which will help drive their share price in 2023.
3 Hidden Gems to Bet On
Caesars Entertainment: Caesars Entertainment is a diversified gaming and hospitality company based in Reno, NV. The Zacks Rank #2 (Buy) stock has declined 47.2% compared with the S&P 500’s fall of 18.7% and has a VGM score of A. In 2023, the company’s sales and earnings are anticipated to increase 5.6% and 131.5%, respectively, year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company is optimistic about the booking trends as it is witnessing increased bookings for group and convention room nights. The company anticipates an uptrend in bookings to continue in 2023. CZR is focused on sports betting expansion to drive growth. To this end, the company formed a new Caesars Digital segment comprising sports betting, iGaming and poker.
The company integrated its digital offerings with Caesars Rewards at online and physical casinos. As of Sep 30, the company operates sports betting in 27 jurisdictions, 19 of which are mobile. Also, it stated the availability of iGaming offerings in 5 jurisdictions.
AMC Entertainment: Headquartered in Leawood, KS, the company engages in the theatrical exhibition business. The company is benefiting from an increase in global attendance. AMC Entertainment is making comprehensive health and sanitation programs, which include enhanced cleaning procedures and upgraded air filtration efforts, to ensure maximum safety for guests.
The Zacks Rank #2 company’s shares have declined 78.1% year to date. However, the company’s robust earnings and sales growth rate for 2023 is likely to drive the stock higher. In 2023, the company’s earnings and sales are expected to witness growth of 17.3% and 72.5%, respectively, year over year.
Live Nation Entertainment: Headquartered in Beverly Hills, CA, Live Nation Entertainment operates as a live entertainment company. Although the Zacks Rank #3 (Hold) company’s shares have declined 40%, it has a VGM score of B. In 2023, the company’s sales and earnings are anticipated to increase 3.9% and 121.7%, respectively, year over year.
The company is likely to benefit from pent-up demand for live events and robust ticket sales. This and the increased demand for digital ticketing and contactless transactions bode well. The company is optimistic about its growth prospects in 2023. Emphasis on cost-saving efforts bodes well. For shows in 2023, the company is witnessing even stronger ticket sales. In 2023, the company expects to add more venues to its operating portfolio. In terms of tickets, the company is likely to benefit from the market pricing trend.
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 >>
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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.