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Wingstop and The Mosaic Company have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – June 30, 2023 – Zacks Equity Research shares Wingstop (WING - Free Report) as the Bull of the Day and The Mosaic Company (MOS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Interpublic Group (IPG - Free Report) and Omnicom Group (OMC - Free Report) .
Headquartered in Texas, Wingstop offers cooked-to-order, hand-sauced, tossed chicken wings, and other similar food items. Currently, the stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across the board.
Aside from the improved earnings outlook, let’s look at several other aspects of WING shares.
Current Standing
WING is a solid consideration for any growth-focused investor; estimates for its current fiscal year (FY23) reflect 15% earnings growth on 20% higher revenues. Peering ahead to FY24, earnings and revenue are forecasted to witness growth of 16% and 14%, respectively.
Wingstop carries a Style Score of “A” for Growth.
Still, the stock may not entice those focusing on value, with the present 14.1X forward price-to-sales sitting on the high end of the spectrum. Still, investors have had little issue forking up the premium given the company’s growth, with WING shares up 40% year-to-date and crushing the S&P 500’s impressive 16% gain.
The stock carries a Style Score of “F” for Value.
It’s worth watching for the company’s next quarterly release expected on July 27th; the Zacks Consensus EPS Estimate of $0.50 suggests an 11% improvement in earnings from the year-ago period. Analysts have been bullish, with the quarterly estimate being revised 11% higher since April of this year.
In addition, our consensus revenue estimate for the upcoming quarter to be reported stands at $104.3 million, 25% higher than the year-ago quarter. The quarterly sales estimate has also enjoyed positive revisions, up 4% since April.
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.
Wingstop would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
The Mosaic Company is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. The company is the biggest integrated phosphate producer globally and among the four largest potash producers worldwide.
Analysts have taken a bearish stance on the company’s earnings outlook, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Let’s take a closer look at the company.
Current Standing
The company posted mixed results in its latest quarterly release, falling short of the Zacks Consensus EPS Estimate by nearly 11%. In fact, Mosaic has struggled to exceed earnings expectations consistently, carrying a -10.8% average EPS surprise over its last four quarters.
Still, revenue results have been more positive, with MOS exceeding sales estimates in back-to-back quarters.
The company’s growth is expected to taper off, with estimates indicating a 60% pullback in earnings on 30% lower revenues for its current fiscal year (FY23). And in FY24, projections allude to a further 20% decline in the bottom line on 13% lower sales.
Analysts have been bearish for some time now, with the $4.49 per share estimate being revised more than 60% lower since June of 2022.
Shares do pay a solid dividend, currently yielding 2.4% annually paired with a sustainable payout ratio sitting at 10% of the company's earnings. Dividend growth is also there, with the company sporting a sizable 53% five-year annualized dividend growth rate.
Bottom Line
Negative earnings estimate revisions from analysts and weak quarterly results paint a challenging picture for the company’s shares in the near term.
The Mosaic Company is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
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:
2 Dividend-Paying Stocks to Benefit from the Advertising Market
The Zacks advertising and marketing industry is currently in good shape. The upside was backed by the advertising revenue trend in the United States. Per Statista, advertising revenues increased from $194.7 billion in 2014 to $343.5 billion in 2022, delivering a constant growth except 2020 when the industry took a hit due to the pandemic.
We believe this is the appropriate time to invest in a booming market and pick regular dividend-paying stocks. Dividends create a reliable source of return without selling shares.
Industry and Its Trends
Per Statista, advertising revenues are expected to reach $424.3 billion by 2027. Internet advertising has been gradually replacing traditional TV advertising, contributing nearly 63% to advertisement revenues in 2022. The metric is expected to be 68% by 2027. Online advertising revenues have seen a surge in the past five years, growing 130% to nearly $210 billion in 2022. The inclusion of artificial intelligence is adding to the growth of online advertising. Paid search, podcasts and videos are some of the main avenues of digital ad spend.
In the past year, the advertising and marketing industry has rallied 24.2% compared with the S&P 500 composites’ 14.6% increase and the Business Services sector’s 3.6% rise.
Why Dividends?
In case of market volatility, dividend stocks can be a go to option for investors. With the volatility currently involved in U.S. markets, investing in fundamentally strong stocks with a good track record of dividend payment seems to be the best idea. Dividend-paying companies are likely to recover faster after a major correction in the market compared with its non-dividend-paying peers.
Stock Picks
Stocks from the expanding advertising and marketing industry that pay regular dividends and exhibit fundamental strength include Interpublic Group and Omnicom Group. They belong to the broader Business Services sector and currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
To select dividend paying stocks, we ran the Zacks Stocks Screener to identify the above-mentioned stocks with a dividend yield in excess of 2% and a five-year historical dividend growth of more than 0.1%. These stocks have a dividend payout ratio of less than 60%.
The Zacks Consensus Estimate for Interpublic Group’s 2023 earnings is pegged at $2.96, indicating a 7.6% year-over-year growth. The consensus mark has been revised 2.1% upward in the past 60 days. Revenues are expected at $9.74 billion, indicating a 3.1% increase from the year-ago quarter’s figure. It has a payout ratio of 47%.
The company’s annualized dividend comes at $1.24, currently yielding 3.2%. It has an annualized five-year dividend growth of 8%. Interpublic currently has a value score of A, reflecting on the history of delivering superior returns. Its earnings topped the Zacks Consensus Estimate in three of the four preceding quarters and matched on one instance. The average surprise came at 9.5%.
The Zacks Consensus Estimate for Omnicom’s 2023 earnings is pegged at $7.43. The figure indicates growth of 7.2%. The consensus mark for earnings has been revised 1.1% northward in the past 60 days. The consensus mark for revenue indicates a 3% growth. Omnicom has a five-year annualized dividend growth rate of 3.5%. Its annualized dividend of $2.80, currently yielding 2.9% with a payout ratio of 39%. Omnicom currently has a value score of A. It has beaten the Zacks Consensus Estimate for earnings in all the last four quarters, with an earnings surprise of 9.1% 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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Wingstop and The Mosaic Company have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 30, 2023 – Zacks Equity Research shares Wingstop (WING - Free Report) as the Bull of the Day and The Mosaic Company (MOS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Interpublic Group (IPG - Free Report) and Omnicom Group (OMC - Free Report) .
Here is a synopsis of all four stocks.
Bull of the Day:
Headquartered in Texas, Wingstop offers cooked-to-order, hand-sauced, tossed chicken wings, and other similar food items. Currently, the stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with earnings expectations increasing across the board.
Aside from the improved earnings outlook, let’s look at several other aspects of WING shares.
Current Standing
WING is a solid consideration for any growth-focused investor; estimates for its current fiscal year (FY23) reflect 15% earnings growth on 20% higher revenues. Peering ahead to FY24, earnings and revenue are forecasted to witness growth of 16% and 14%, respectively.
Wingstop carries a Style Score of “A” for Growth.
Still, the stock may not entice those focusing on value, with the present 14.1X forward price-to-sales sitting on the high end of the spectrum. Still, investors have had little issue forking up the premium given the company’s growth, with WING shares up 40% year-to-date and crushing the S&P 500’s impressive 16% gain.
The stock carries a Style Score of “F” for Value.
It’s worth watching for the company’s next quarterly release expected on July 27th; the Zacks Consensus EPS Estimate of $0.50 suggests an 11% improvement in earnings from the year-ago period. Analysts have been bullish, with the quarterly estimate being revised 11% higher since April of this year.
In addition, our consensus revenue estimate for the upcoming quarter to be reported stands at $104.3 million, 25% higher than the year-ago quarter. The quarterly sales estimate has also enjoyed positive revisions, up 4% since April.
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.
Wingstop 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 Mosaic Company is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. The company is the biggest integrated phosphate producer globally and among the four largest potash producers worldwide.
Analysts have taken a bearish stance on the company’s earnings outlook, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Let’s take a closer look at the company.
Current Standing
The company posted mixed results in its latest quarterly release, falling short of the Zacks Consensus EPS Estimate by nearly 11%. In fact, Mosaic has struggled to exceed earnings expectations consistently, carrying a -10.8% average EPS surprise over its last four quarters.
Still, revenue results have been more positive, with MOS exceeding sales estimates in back-to-back quarters.
The company’s growth is expected to taper off, with estimates indicating a 60% pullback in earnings on 30% lower revenues for its current fiscal year (FY23). And in FY24, projections allude to a further 20% decline in the bottom line on 13% lower sales.
Analysts have been bearish for some time now, with the $4.49 per share estimate being revised more than 60% lower since June of 2022.
Shares do pay a solid dividend, currently yielding 2.4% annually paired with a sustainable payout ratio sitting at 10% of the company's earnings. Dividend growth is also there, with the company sporting a sizable 53% five-year annualized dividend growth rate.
Bottom Line
Negative earnings estimate revisions from analysts and weak quarterly results paint a challenging picture for the company’s shares in the near term.
The Mosaic Company is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
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:
2 Dividend-Paying Stocks to Benefit from the Advertising Market
The Zacks advertising and marketing industry is currently in good shape. The upside was backed by the advertising revenue trend in the United States. Per Statista, advertising revenues increased from $194.7 billion in 2014 to $343.5 billion in 2022, delivering a constant growth except 2020 when the industry took a hit due to the pandemic.
We believe this is the appropriate time to invest in a booming market and pick regular dividend-paying stocks. Dividends create a reliable source of return without selling shares.
Industry and Its Trends
Per Statista, advertising revenues are expected to reach $424.3 billion by 2027. Internet advertising has been gradually replacing traditional TV advertising, contributing nearly 63% to advertisement revenues in 2022. The metric is expected to be 68% by 2027. Online advertising revenues have seen a surge in the past five years, growing 130% to nearly $210 billion in 2022. The inclusion of artificial intelligence is adding to the growth of online advertising. Paid search, podcasts and videos are some of the main avenues of digital ad spend.
In the past year, the advertising and marketing industry has rallied 24.2% compared with the S&P 500 composites’ 14.6% increase and the Business Services sector’s 3.6% rise.
Why Dividends?
In case of market volatility, dividend stocks can be a go to option for investors. With the volatility currently involved in U.S. markets, investing in fundamentally strong stocks with a good track record of dividend payment seems to be the best idea. Dividend-paying companies are likely to recover faster after a major correction in the market compared with its non-dividend-paying peers.
Stock Picks
Stocks from the expanding advertising and marketing industry that pay regular dividends and exhibit fundamental strength include Interpublic Group and Omnicom Group. They belong to the broader Business Services sector and currently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
To select dividend paying stocks, we ran the Zacks Stocks Screener to identify the above-mentioned stocks with a dividend yield in excess of 2% and a five-year historical dividend growth of more than 0.1%. These stocks have a dividend payout ratio of less than 60%.
The Zacks Consensus Estimate for Interpublic Group’s 2023 earnings is pegged at $2.96, indicating a 7.6% year-over-year growth. The consensus mark has been revised 2.1% upward in the past 60 days. Revenues are expected at $9.74 billion, indicating a 3.1% increase from the year-ago quarter’s figure. It has a payout ratio of 47%.
The company’s annualized dividend comes at $1.24, currently yielding 3.2%. It has an annualized five-year dividend growth of 8%. Interpublic currently has a value score of A, reflecting on the history of delivering superior returns. Its earnings topped the Zacks Consensus Estimate in three of the four preceding quarters and matched on one instance. The average surprise came at 9.5%.
Interpublic Group of Companies, Inc. (The) dividend-yield-ttm | Interpublic Group of Companies, Inc. (The) Quote
The Zacks Consensus Estimate for Omnicom’s 2023 earnings is pegged at $7.43. The figure indicates growth of 7.2%. The consensus mark for earnings has been revised 1.1% northward in the past 60 days. The consensus mark for revenue indicates a 3% growth. Omnicom has a five-year annualized dividend growth rate of 3.5%. Its annualized dividend of $2.80, currently yielding 2.9% with a payout ratio of 39%. Omnicom currently has a value score of A. It has beaten the Zacks Consensus Estimate for earnings in all the last four quarters, with an earnings surprise of 9.1% on average.
Omnicom Group Inc. dividend-yield-ttm | Omnicom Group Inc. Quote
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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.