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APi Group and Stanley Black & Decker have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – April 26, 2023 – Zacks Equity Research shares APi Group Corp. (APG - Free Report) as the Bull of the Day and Stanley Black & Decker (SWK - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on First Solar, Inc. (FSLR - Free Report) , FTC Solar (FTCI - Free Report) and Maxeon Solar Technologies (MAXN - Free Report) .
APi Group Corp. is a business services provider specializing in life safety, security, and monitoring such as fire detection and suppression systems. The company expanded in recent years via a major acquisition and organic growth across a somewhat boring but essential area of the economy.
APi Group shares have jumped around 20% in the last 12 months to blow away its industry, while still trading at a huge discount on the valuation front. APG’s earnings revisions have rocketed higher as it benefits from its resilient offerings and its growing recurring revenue streams.
The Basics
APi Group began trading on the NYSE in the spring of 2020. The move came not too long after J2 Acquisition acquired APi Group via a SPAC in 2019. APi Group then in January 2022 completed its purchase of the Chubb fire and security business from Carrier Global (CARR).
The deal brought the UK-headquarter provider of fire safety and security services under the same roof as the New Brighton, Minnesota-based APi Group. APG now operates in over 20 countries and is one of the top providers of life safety, security, monitoring, and specialty services business. APi Group operates two business segments: Safety Services and Specialty Services.
APG’s Safety Services is focused on fire detection and suppression systems, as well as security systems for a wide range of customers. The company operates across the lifecycle of these critical offerings from design and installation to service and monitoring. APi Group’s Specialty Services segment centers around maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer, and telecommunications infrastructure.
APi Group’s offerings include turnkey solutions, with a focus on end-to-end integrated occupancy systems. APG boasts that its clients can “satisfy all” of their “OSHA requirements” with its “world-class solutions, systems and programs for risk response.”
Recent Growth, Outlook & Earnings Revisions
APi Group’s 2022 sales skyrocketed 66% to $6.6 billion, driven by its key acquisitions in safety services, alongside strong organic growth. The firm’s organic revenue climbed by 12%, driven by expansion across inspection, service, and monitoring in Safety Services, alongside what it called a “general market recovery” in Safety and Specialty Services as companies around the U.S. and beyond got back to normal following covid.
APi Group closed 2022 with a 9% bigger backlog, and it is focused on disciplined project and customer selection, while also aiming to greatly boost its “acyclical, recurring service revenue.” And it was able to improve its gross margin by over 2% to 26.1% in 2022.
APi Groups’ consensus fiscal 2023 EPS outlook popped over 7% since it posted solid Q4 results, with FY24 up 29% even as Wall Street worries about slowing economic growth. APG’s upward earnings revisions help it land a Zacks Rank #1 (Strong Buy) right now.
Despite the rough-to-compete against period, Zacks estimates call for APi Group’s sales to climb another 5% in 2023 and 3% higher in FY24 to reach $7.1 billion. Meanwhile, its adjusted earnings are expected to jump 12% and 19%, respectively to eventually hit $1.78 a share next year, which would come on top of 30% bottom line expansion last year.
Price Movement and Valuation
APG shares have climbed 112% in the past three years to leave the S&P 500’s 44% and its industry’s 42% run in the dust. APi Group shares, like most of the market, fell between the start of 2022 and the end of the third quarter of last year.
APG stock is now up 37% in the past six months vs. its industry’s 2% drop and the S&P 500’s 8% climb. This run includes a 17% jump in 2023.
At around $22 per share, APi Group stock trades 10% below its early March peaks and 14% underneath its average Zacks price target. And APG is currently floating right around its 50-day moving average, having experienced a bullish golden cross (short-term moving average crosses back above the longer-term) back in December.
Alongside its under $25 per share price target, APG trades at a 20% discount to its highly-ranked industry and 25% vs. the S&P 500 despite easily outperforming both since it began trading on the NYSE. APi Group is trading just above its historic median at 14X forward 12-month earnings and at a 25% discount to its own highs.
Bottom Line
APG is part of the Zacks Business Services industry that ranks in the top 16% of over 250 Zacks industries, and it grabs “B” grades for both Value and Growth in our Style Scores system. APi Group’s balance sheet is sturdy and it is worth stressing that companies can ill afford to cut back on many of APG’s core products and services.
APG’s pitch to investors remains straightforward heading into its Q1 earnings release on Thursday, May 4. APi Group is actively expanding its reach across critical, hard-to-cut-back-on areas of the economy. APG's valuation and price performance seemingly speak for themselves, while its $22 per share price might make it even more attractive to some.
Stanley Black & Decker is the company behind iconic power tool brands and more. Stanley Black & Decker is coming off two years of impressive top-line growth. But its earnings already came under huge pressure in 2022 as it struggles with rather large inventory issues and other setbacks. And SWK’s earnings outlook for 2023 and 2024 has tumbled.
Tools Galore
Stanley Black & Decker’s offerings include power tools, hand tools, storage, digital tool solutions, outdoor products, engineered fasteners, various other industrial equipment, and beyond. Some of SWK’s brands include Dewalt, Black+Decker, Cub Cadet, Craftsman, and Stanley.
Stanley Black & Decker’s revenue climbed 11% in 2022 after it posted roughly 20% sales growth in 2021. Yet, its adjusted earnings plummeted last year.
Zacks estimates call for its adjusted earnings to fall another 83% in 2023 from $4.62 per share all the way to $0.77 a share on 4% lower sales. Plus, the nearby chart shows that its adjusted earnings outlook has fallen off a cliff over the last year for FY23 and FY24 to help it land a Zacks Rank #5 (Strong Sell).
Stanley Black & Decker’s adjusted earnings are projected to start to bounce back in a rather big way in 2024 on slightly higher sales. And the company is aiming to return its gross margins to “historical 35%+ levels by accelerating the operations and supply chain transformation to improve fill rates and better match inventory with customer demand.”
Bottom Line
Stanley Black & Decker remains a strong company overall and its brands should continue to be staples in the power tool and outdoor equipment space. SWK’s dividend also yields around 4% at the moment. That said, its dividend payout ratio sits at a somewhat large 71%.
SWK shares have fallen around 45% in the past 12 months and over 60% in the trailing 24 months. The selloff has Stanley Black & Decker up just around 4% in the past decade.
Some might think now is a good time to try to buy SWK at its potential lows. Yet it failed to breakout above some key moving averages recently and it might be wise to wait and see the turnaround truly form before considering Stanley Black & Decker stock again.
Additional Content:
What's in the Cards for First Solar's (FSLR - Free Report) Q1 Earnings?
First Solar, Inc. is slated to report its first-quarter 2023 results on Apr 27 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 61.11%. First Solar has a trailing four-quarter earnings surprise of 8.61%, on average.
Factors to Note
The strong momentum of bookings and strength in the sales volume of modules are likely to have boosted the top line of the company in the first quarter of 2023. Moreover, expanding manufacturing capacity and a vertically integrated manufacturing process may have aided the top line in the soon-to-be-reported quarter. Also, the completion of the sale of FSLR’s Luz del Norte project in Chile may have contributed to revenues in the first quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $718.7 million. This suggests growth of 95.8% from the year-ago reported figure.
A strong top line may have benefited the bottom-line performance of First Solar in the soon-to-be-reported quarter.
Meanwhile, higher production startup expenses, coupled with increased SG&A expenses and research & development expenses, might have weighed on the company’s earnings in the soon-to-be-reported quarter. Also, higher impairment charges due to the divestment of the Luz del Norte project are likely to have dampened FSLR’s earnings in the to-be-reported quarter. However, lower module and freight costs and projected sales growth can be expected to have boosted overall earnings in the first quarter.
The Zacks Consensus Estimate for First Solar’s first-quarter earnings is pegged at $1.01 per share. This implies massive growth from the year-ago quarter’s reported loss of 41 cents per share.
Our proven model does not conclusively predict an earnings beat for FSLR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -1.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are two companies you may want to consider from the same sector as these have the right combination of elements to post an earnings beat this season:
FTC Solar currently has an Earnings ESP of +36.84% and a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter sales is pegged at $38.52 million, suggesting a decline of 22.3%.
FTCI delivered an earnings surprise of 8.33% in the last quarter. It has a four-quarter average negative earnings surprise of 15.08%.
Maxeon Solar Technologies currently has an Earnings ESP of +57.07% and a Zacks Rank #2. The Zacks Consensus Estimate for Maxeon’s first-quarter sales suggests year-over-year growth of 47.2% from the prior-year reported figure.
In the last reported quarter, Maxeon delivered a negative earnings surprise of 47.20%. MAXN has a four-quarter negative earnings surprise of 11.25%, on average.
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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APi Group and Stanley Black & Decker have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 26, 2023 – Zacks Equity Research shares APi Group Corp. (APG - Free Report) as the Bull of the Day and Stanley Black & Decker (SWK - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on First Solar, Inc. (FSLR - Free Report) , FTC Solar (FTCI - Free Report) and Maxeon Solar Technologies (MAXN - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
APi Group Corp. is a business services provider specializing in life safety, security, and monitoring such as fire detection and suppression systems. The company expanded in recent years via a major acquisition and organic growth across a somewhat boring but essential area of the economy.
APi Group shares have jumped around 20% in the last 12 months to blow away its industry, while still trading at a huge discount on the valuation front. APG’s earnings revisions have rocketed higher as it benefits from its resilient offerings and its growing recurring revenue streams.
The Basics
APi Group began trading on the NYSE in the spring of 2020. The move came not too long after J2 Acquisition acquired APi Group via a SPAC in 2019. APi Group then in January 2022 completed its purchase of the Chubb fire and security business from Carrier Global (CARR).
The deal brought the UK-headquarter provider of fire safety and security services under the same roof as the New Brighton, Minnesota-based APi Group. APG now operates in over 20 countries and is one of the top providers of life safety, security, monitoring, and specialty services business. APi Group operates two business segments: Safety Services and Specialty Services.
APG’s Safety Services is focused on fire detection and suppression systems, as well as security systems for a wide range of customers. The company operates across the lifecycle of these critical offerings from design and installation to service and monitoring. APi Group’s Specialty Services segment centers around maintenance and repair of critical infrastructure such as underground electric, gas, water, sewer, and telecommunications infrastructure.
APi Group’s offerings include turnkey solutions, with a focus on end-to-end integrated occupancy systems. APG boasts that its clients can “satisfy all” of their “OSHA requirements” with its “world-class solutions, systems and programs for risk response.”
Recent Growth, Outlook & Earnings Revisions
APi Group’s 2022 sales skyrocketed 66% to $6.6 billion, driven by its key acquisitions in safety services, alongside strong organic growth. The firm’s organic revenue climbed by 12%, driven by expansion across inspection, service, and monitoring in Safety Services, alongside what it called a “general market recovery” in Safety and Specialty Services as companies around the U.S. and beyond got back to normal following covid.
APi Group closed 2022 with a 9% bigger backlog, and it is focused on disciplined project and customer selection, while also aiming to greatly boost its “acyclical, recurring service revenue.” And it was able to improve its gross margin by over 2% to 26.1% in 2022.
APi Groups’ consensus fiscal 2023 EPS outlook popped over 7% since it posted solid Q4 results, with FY24 up 29% even as Wall Street worries about slowing economic growth. APG’s upward earnings revisions help it land a Zacks Rank #1 (Strong Buy) right now.
Despite the rough-to-compete against period, Zacks estimates call for APi Group’s sales to climb another 5% in 2023 and 3% higher in FY24 to reach $7.1 billion. Meanwhile, its adjusted earnings are expected to jump 12% and 19%, respectively to eventually hit $1.78 a share next year, which would come on top of 30% bottom line expansion last year.
Price Movement and Valuation
APG shares have climbed 112% in the past three years to leave the S&P 500’s 44% and its industry’s 42% run in the dust. APi Group shares, like most of the market, fell between the start of 2022 and the end of the third quarter of last year.
APG stock is now up 37% in the past six months vs. its industry’s 2% drop and the S&P 500’s 8% climb. This run includes a 17% jump in 2023.
At around $22 per share, APi Group stock trades 10% below its early March peaks and 14% underneath its average Zacks price target. And APG is currently floating right around its 50-day moving average, having experienced a bullish golden cross (short-term moving average crosses back above the longer-term) back in December.
Alongside its under $25 per share price target, APG trades at a 20% discount to its highly-ranked industry and 25% vs. the S&P 500 despite easily outperforming both since it began trading on the NYSE. APi Group is trading just above its historic median at 14X forward 12-month earnings and at a 25% discount to its own highs.
Bottom Line
APG is part of the Zacks Business Services industry that ranks in the top 16% of over 250 Zacks industries, and it grabs “B” grades for both Value and Growth in our Style Scores system. APi Group’s balance sheet is sturdy and it is worth stressing that companies can ill afford to cut back on many of APG’s core products and services.
APG’s pitch to investors remains straightforward heading into its Q1 earnings release on Thursday, May 4. APi Group is actively expanding its reach across critical, hard-to-cut-back-on areas of the economy. APG's valuation and price performance seemingly speak for themselves, while its $22 per share price might make it even more attractive to some.
Bear of the Day:
Stanley Black & Decker is the company behind iconic power tool brands and more. Stanley Black & Decker is coming off two years of impressive top-line growth. But its earnings already came under huge pressure in 2022 as it struggles with rather large inventory issues and other setbacks. And SWK’s earnings outlook for 2023 and 2024 has tumbled.
Tools Galore
Stanley Black & Decker’s offerings include power tools, hand tools, storage, digital tool solutions, outdoor products, engineered fasteners, various other industrial equipment, and beyond. Some of SWK’s brands include Dewalt, Black+Decker, Cub Cadet, Craftsman, and Stanley.
Stanley Black & Decker’s revenue climbed 11% in 2022 after it posted roughly 20% sales growth in 2021. Yet, its adjusted earnings plummeted last year.
Zacks estimates call for its adjusted earnings to fall another 83% in 2023 from $4.62 per share all the way to $0.77 a share on 4% lower sales. Plus, the nearby chart shows that its adjusted earnings outlook has fallen off a cliff over the last year for FY23 and FY24 to help it land a Zacks Rank #5 (Strong Sell).
Stanley Black & Decker’s adjusted earnings are projected to start to bounce back in a rather big way in 2024 on slightly higher sales. And the company is aiming to return its gross margins to “historical 35%+ levels by accelerating the operations and supply chain transformation to improve fill rates and better match inventory with customer demand.”
Bottom Line
Stanley Black & Decker remains a strong company overall and its brands should continue to be staples in the power tool and outdoor equipment space. SWK’s dividend also yields around 4% at the moment. That said, its dividend payout ratio sits at a somewhat large 71%.
SWK shares have fallen around 45% in the past 12 months and over 60% in the trailing 24 months. The selloff has Stanley Black & Decker up just around 4% in the past decade.
Some might think now is a good time to try to buy SWK at its potential lows. Yet it failed to breakout above some key moving averages recently and it might be wise to wait and see the turnaround truly form before considering Stanley Black & Decker stock again.
Additional Content:
What's in the Cards for First Solar's (FSLR - Free Report) Q1 Earnings?
First Solar, Inc. is slated to report its first-quarter 2023 results on Apr 27 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 61.11%. First Solar has a trailing four-quarter earnings surprise of 8.61%, on average.
Factors to Note
The strong momentum of bookings and strength in the sales volume of modules are likely to have boosted the top line of the company in the first quarter of 2023. Moreover, expanding manufacturing capacity and a vertically integrated manufacturing process may have aided the top line in the soon-to-be-reported quarter. Also, the completion of the sale of FSLR’s Luz del Norte project in Chile may have contributed to revenues in the first quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $718.7 million. This suggests growth of 95.8% from the year-ago reported figure.
A strong top line may have benefited the bottom-line performance of First Solar in the soon-to-be-reported quarter.
Meanwhile, higher production startup expenses, coupled with increased SG&A expenses and research & development expenses, might have weighed on the company’s earnings in the soon-to-be-reported quarter. Also, higher impairment charges due to the divestment of the Luz del Norte project are likely to have dampened FSLR’s earnings in the to-be-reported quarter. However, lower module and freight costs and projected sales growth can be expected to have boosted overall earnings in the first quarter.
The Zacks Consensus Estimate for First Solar’s first-quarter earnings is pegged at $1.01 per share. This implies massive growth from the year-ago quarter’s reported loss of 41 cents per share.
First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for FSLR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -1.25%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: First Solar currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are two companies you may want to consider from the same sector as these have the right combination of elements to post an earnings beat this season:
FTC Solar currently has an Earnings ESP of +36.84% and a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter sales is pegged at $38.52 million, suggesting a decline of 22.3%.
FTCI delivered an earnings surprise of 8.33% in the last quarter. It has a four-quarter average negative earnings surprise of 15.08%.
Maxeon Solar Technologies currently has an Earnings ESP of +57.07% and a Zacks Rank #2. The Zacks Consensus Estimate for Maxeon’s first-quarter sales suggests year-over-year growth of 47.2% from the prior-year reported figure.
In the last reported quarter, Maxeon delivered a negative earnings surprise of 47.20%. MAXN has a four-quarter negative earnings surprise of 11.25%, on average.
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.