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Deere and Pfizer have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – March 27, 2023 – Zacks Equity Research shares Deere & Company (DE - Free Report) as the Bull of the Day and Pfizer (PFE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on lululemon athletica inc. (LULU - Free Report) , Roku, Inc. (ROKU - Free Report) and Mattel (MAT - Free Report) .
The Zacks Industrial Products sector is currently the top-ranked Zacks sector, telling us that companies within have seen their outlooks shift positively with rising earnings estimate revisions.
One company in the sector, Deere & Company, has been no exception to the positive shift in sentiment, presently sporting the highly-coveted Zacks Rank #1 (Strong Buy).
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under its iconic John Deere brand and signature green and yellow color scheme. Let's take a closer look at the company.
Shareholder-Friendly Nature
Everybody loves dividends. After all, who doesn’t like payday?
For those seeking an income stream, DE shares have that covered; the company’s annual dividend presently yields 1.2%, a few ticks below the Zacks Industrial Products sector average.
However, Deere’s 13% five-year annualized dividend growth rate helps pick up the slack in a big way. The company has no problem with increasingly rewarding its shareholders.
Reasonable Valuation
The company’s shares aren’t rich in terms of valuation, with the current 12.9X forward earnings multiple sitting well below the 16.3X five-year median and Zacks sector average.
Further, Deere’s forward price-to-sales ratio of 2.1X is nearly in line with the five-year median and again below the Zacks sector average.
Strong Quarterly Performance
DE has recently impressed with its quarterly results, exceeding earnings and revenue estimates in back-to-back quarters.
Just in its latest release, the agricultural equipment titan penciled in an 18.5% EPS surprise and reported sales roughly 1% ahead of expectations.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, 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.
Deere & Co. would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
The Zacks Medical sector has struggled in 2023, down roughly 5% YTD and underperforming relative to the S&P 500.
One stock residing in the realm, Pfizer, has seen its near-term outlook shift negative over the last several months, pushing the stock down into a Zacks Rank #5 (Strong Sell).
Pfizer is a multinational pharmaceutical and biotechnology corporation headquartered in New York City, well-known for its COVID-19 vaccine. How does the company currently stack up? Let’s take a closer look.
Share Performance
PFE shares have been in a downward trend throughout 2023, losing more than 20% in value and widely underperforming relative to the S&P 500.
And over the last six months, PFE shares have again lagged behind the general market, losing 6% in value compared to the S&P 500’s 9% gain. The adverse price action indicates that sellers have been in control with no meaningful buying yet to step up.
Quarterly Performance
Pfizer has consistently posted better-than-expected results recently, exceeding earnings and revenue estimates in three consecutive quarters. Just in its latest release, the pharmaceutical titan penciled in a 10% bottom line beat and reported sales marginally above expectations.
However, the market wasn’t impressed with the recent double-beat, sending shares downward post-earnings.
Dividends
Pfizer shares do pay a solid dividend, currently yielding 4.1% annually. As we can see, the current yield is more than double the average of the Zacks Medical sector.
Over the last five years, PFE’s payout has grown by roughly 4%.
Bottom Line
Weak share performance and negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.
Pfizer is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
lululemon athletica inc. is likely to witness top and bottom-line growth when it reports fourth-quarter fiscal 2022 results on Mar 28, after market close.
The Zacks Consensus Estimate for fiscal fourth-quarter sales is pegged at $2.7 billion, indicating a 26.4% increase from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the company's fiscal fourth-quarter earnings is pinned at $4.25, suggesting a 26.1% rise from the $3.37 reported in the year-ago quarter. Earnings estimates have moved up by a penny in the past 60 days.
For fiscal 2022, the Zacks Consensus Estimate is pegged at $8 billion, suggesting a 28.5% growth from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for fiscal 2022 earnings indicate a 27.3% year-over-year growth to $9.92. We expect the company’s fiscal 2022 total revenues to increase 27.2% year over year to $7,959 million and the bottom line to increase 27% to $9.9 per share.
The company delivered an earnings surprise of 2% in the last reported quarter. LULU's bottom line beat estimates by 6.7%, on average, in the trailing four quarters.
lululemon has been benefiting from continued business momentum, backed by a favorable response to its products. Improvement in store traffic, as consumers returned to stores for shopping, as well as solid online show, bodes well. The persistence of the trend is expected to have boosted the company’s top line in the to-be-reported quarter.
The company has been focused on investments to enhance the in-store experience. It has been leveraging its stores to facilitate omni-channel capabilities, including buy online pick up in store (BOPUS) and ship from store. It has been implementing several strategies to improve the guest experience and reduce wait time. These include virtual waitlist, mobile POS and appointment shopping. These functionalities enable reducing the time of waiting in line to enter the store, as well as allow customers to complete some transactions like returns, exchanges and purchase of gift cards without entering the store. Store expansion efforts are also expected to have acted as an upside.
lululemon has been gaining from improving online demand. Its accelerated e-commerce investments to ensure a robust shopping experience also bode well. It has been investing in developing sites, building transactional omni functionality and increasing fulfillment capabilities. Some notable efforts in this space include curbside pickups, same-day deliveries and BOPUS. It has been enhancing its mobile app in a bid to offer the curbside pickup service and train its store associates to help customers speed up transactions. Free online digital educator service for people who can't make it into stores also bodes well.
On the last reported quarter’s earnings call, management anticipated net revenues of $7.944-$7.994 billion for fiscal 2022. The revised view represents a three-year CAGR of 26%, suggesting a rise from the three-year revenue CAGR of 19% leading up to fiscal 2020. Lululemon anticipates GAAP EPS of $9.94-$10.04 for fiscal 2022 compared with $9.82-$9.97 stated earlier. Excluding the gain from the sale of an administrative office building, adjusted EPS for the fiscal year is envisioned to be $9.87-$9.97 compared with the $9.75-$9.90 mentioned earlier.
lululemon recently updated its fourth-quarter fiscal 2022 view, wherein the company expects revenues of $2.66-$2.7 billion, indicating 25-27% year-over-year growth, up from the previously stated $2.605-$2.655 billion. Adjusted earnings are envisioned to be $4.22-$4.27, up from the prior mentioned $4.20-$4.30. It also highlighted that the fiscal fourth-quarter traffic remained strong across both physical and digital channels. It anticipated delivering another quarter of solid earnings growth.
However, lululemon has been witnessing elevated costs and increased markdowns. Also, higher investments in the distribution center network and more normalized markdowns from the low levels witnessed in the prior year are expected to have hurt margins in fourth-quarter fiscal 2022. The company anticipates the fiscal fourth-quarter gross margin to contract 90-110 basis points (bps) compared with the earlier stated 10-20 bps expansion. For fiscal 2022, management envisions the gross margin to decline 100-140 bps mainly due to adverse currency rates.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for lululemon this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
lululemon has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Roku, Inc. has an Earnings ESP of +0.10% and a Zacks Rank #3. ROKU is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $711.5 billion, suggesting a 3% decline from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Roku’s fiscal fourth-quarter earnings is pegged at a loss of $1.48, suggesting a decrease of 679% from the year-ago quarter’s reported number. The consensus mark for the fiscal fourth quarter has moved down 1.4% in the past 30 days. ROKU has delivered a bottom-line beat of 5.2%, on average, in the trailing four quarters.
Mattel currently has an Earnings ESP of +20.46% and a Zacks Rank #3. MAT is anticipated to register top and bottom-line declines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $772.8 million, indicating a decline of 25.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mattel’s loss of 12 cents per share has widened by 2 cents in the past 30 days. This suggests a significant decline from earnings of 8 cents reported in the prior-year quarter. MAT has delivered an earnings beat of 124.8%, on average, in the trailing four quarters.
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. 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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Deere and Pfizer have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 27, 2023 – Zacks Equity Research shares Deere & Company (DE - Free Report) as the Bull of the Day and Pfizer (PFE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on lululemon athletica inc. (LULU - Free Report) , Roku, Inc. (ROKU - Free Report) and Mattel (MAT - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
The Zacks Industrial Products sector is currently the top-ranked Zacks sector, telling us that companies within have seen their outlooks shift positively with rising earnings estimate revisions.
One company in the sector, Deere & Company, has been no exception to the positive shift in sentiment, presently sporting the highly-coveted Zacks Rank #1 (Strong Buy).
Illinois-based Deere is the world’s largest producer of agricultural equipment, manufacturing agricultural machinery since 1837 under its iconic John Deere brand and signature green and yellow color scheme. Let's take a closer look at the company.
Shareholder-Friendly Nature
Everybody loves dividends. After all, who doesn’t like payday?
For those seeking an income stream, DE shares have that covered; the company’s annual dividend presently yields 1.2%, a few ticks below the Zacks Industrial Products sector average.
However, Deere’s 13% five-year annualized dividend growth rate helps pick up the slack in a big way. The company has no problem with increasingly rewarding its shareholders.
Reasonable Valuation
The company’s shares aren’t rich in terms of valuation, with the current 12.9X forward earnings multiple sitting well below the 16.3X five-year median and Zacks sector average.
Further, Deere’s forward price-to-sales ratio of 2.1X is nearly in line with the five-year median and again below the Zacks sector average.
Strong Quarterly Performance
DE has recently impressed with its quarterly results, exceeding earnings and revenue estimates in back-to-back quarters.
Just in its latest release, the agricultural equipment titan penciled in an 18.5% EPS surprise and reported sales roughly 1% ahead of expectations.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, 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.
Deere & Co. 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 Medical sector has struggled in 2023, down roughly 5% YTD and underperforming relative to the S&P 500.
One stock residing in the realm, Pfizer, has seen its near-term outlook shift negative over the last several months, pushing the stock down into a Zacks Rank #5 (Strong Sell).
Pfizer is a multinational pharmaceutical and biotechnology corporation headquartered in New York City, well-known for its COVID-19 vaccine. How does the company currently stack up? Let’s take a closer look.
Share Performance
PFE shares have been in a downward trend throughout 2023, losing more than 20% in value and widely underperforming relative to the S&P 500.
And over the last six months, PFE shares have again lagged behind the general market, losing 6% in value compared to the S&P 500’s 9% gain. The adverse price action indicates that sellers have been in control with no meaningful buying yet to step up.
Quarterly Performance
Pfizer has consistently posted better-than-expected results recently, exceeding earnings and revenue estimates in three consecutive quarters. Just in its latest release, the pharmaceutical titan penciled in a 10% bottom line beat and reported sales marginally above expectations.
However, the market wasn’t impressed with the recent double-beat, sending shares downward post-earnings.
Dividends
Pfizer shares do pay a solid dividend, currently yielding 4.1% annually. As we can see, the current yield is more than double the average of the Zacks Medical sector.
Over the last five years, PFE’s payout has grown by roughly 4%.
Bottom Line
Weak share performance and negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.
Pfizer is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Factors Likely to Influence lululemon's (LULU - Free Report) Q4 Earnings
lululemon athletica inc. is likely to witness top and bottom-line growth when it reports fourth-quarter fiscal 2022 results on Mar 28, after market close.
The Zacks Consensus Estimate for fiscal fourth-quarter sales is pegged at $2.7 billion, indicating a 26.4% increase from the prior-year quarter's reported figure. The Zacks Consensus Estimate for the company's fiscal fourth-quarter earnings is pinned at $4.25, suggesting a 26.1% rise from the $3.37 reported in the year-ago quarter. Earnings estimates have moved up by a penny in the past 60 days.
For fiscal 2022, the Zacks Consensus Estimate is pegged at $8 billion, suggesting a 28.5% growth from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for fiscal 2022 earnings indicate a 27.3% year-over-year growth to $9.92. We expect the company’s fiscal 2022 total revenues to increase 27.2% year over year to $7,959 million and the bottom line to increase 27% to $9.9 per share.
The company delivered an earnings surprise of 2% in the last reported quarter. LULU's bottom line beat estimates by 6.7%, on average, in the trailing four quarters.
lululemon athletica inc. price-eps-surprise | lululemon athletica inc. Quote
Key Factors to Note
lululemon has been benefiting from continued business momentum, backed by a favorable response to its products. Improvement in store traffic, as consumers returned to stores for shopping, as well as solid online show, bodes well. The persistence of the trend is expected to have boosted the company’s top line in the to-be-reported quarter.
The company has been focused on investments to enhance the in-store experience. It has been leveraging its stores to facilitate omni-channel capabilities, including buy online pick up in store (BOPUS) and ship from store. It has been implementing several strategies to improve the guest experience and reduce wait time. These include virtual waitlist, mobile POS and appointment shopping. These functionalities enable reducing the time of waiting in line to enter the store, as well as allow customers to complete some transactions like returns, exchanges and purchase of gift cards without entering the store. Store expansion efforts are also expected to have acted as an upside.
lululemon has been gaining from improving online demand. Its accelerated e-commerce investments to ensure a robust shopping experience also bode well. It has been investing in developing sites, building transactional omni functionality and increasing fulfillment capabilities. Some notable efforts in this space include curbside pickups, same-day deliveries and BOPUS. It has been enhancing its mobile app in a bid to offer the curbside pickup service and train its store associates to help customers speed up transactions. Free online digital educator service for people who can't make it into stores also bodes well.
On the last reported quarter’s earnings call, management anticipated net revenues of $7.944-$7.994 billion for fiscal 2022. The revised view represents a three-year CAGR of 26%, suggesting a rise from the three-year revenue CAGR of 19% leading up to fiscal 2020. Lululemon anticipates GAAP EPS of $9.94-$10.04 for fiscal 2022 compared with $9.82-$9.97 stated earlier. Excluding the gain from the sale of an administrative office building, adjusted EPS for the fiscal year is envisioned to be $9.87-$9.97 compared with the $9.75-$9.90 mentioned earlier.
lululemon recently updated its fourth-quarter fiscal 2022 view, wherein the company expects revenues of $2.66-$2.7 billion, indicating 25-27% year-over-year growth, up from the previously stated $2.605-$2.655 billion. Adjusted earnings are envisioned to be $4.22-$4.27, up from the prior mentioned $4.20-$4.30. It also highlighted that the fiscal fourth-quarter traffic remained strong across both physical and digital channels. It anticipated delivering another quarter of solid earnings growth.
However, lululemon has been witnessing elevated costs and increased markdowns. Also, higher investments in the distribution center network and more normalized markdowns from the low levels witnessed in the prior year are expected to have hurt margins in fourth-quarter fiscal 2022. The company anticipates the fiscal fourth-quarter gross margin to contract 90-110 basis points (bps) compared with the earlier stated 10-20 bps expansion. For fiscal 2022, management envisions the gross margin to decline 100-140 bps mainly due to adverse currency rates.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for lululemon this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
lululemon has a Zacks Rank #3 and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:
Roku, Inc. has an Earnings ESP of +0.10% and a Zacks Rank #3. ROKU is likely to register top and bottom-line growth when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for its quarterly revenues is pegged at $711.5 billion, suggesting a 3% decline from the figure reported in the prior-year quarter.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Roku’s fiscal fourth-quarter earnings is pegged at a loss of $1.48, suggesting a decrease of 679% from the year-ago quarter’s reported number. The consensus mark for the fiscal fourth quarter has moved down 1.4% in the past 30 days. ROKU has delivered a bottom-line beat of 5.2%, on average, in the trailing four quarters.
Mattel currently has an Earnings ESP of +20.46% and a Zacks Rank #3. MAT is anticipated to register top and bottom-line declines when it reports first-quarter 2023 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $772.8 million, indicating a decline of 25.8% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Mattel’s loss of 12 cents per share has widened by 2 cents in the past 30 days. This suggests a significant decline from earnings of 8 cents reported in the prior-year quarter. MAT has delivered an earnings beat of 124.8%, on average, in the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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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.