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Meta Platforms and Cirrus Logic have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – July 7, 2023 – Zacks Equity Research shares Meta Platforms (META - Free Report) as the Bull of the Day and Cirrus Logic (CRUS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Hut 8 Mining Corp. (HUT - Free Report) and Bitfarms Ltd. (BITF - Free Report) and HIVE Blockchain Technologies Ltd. (HIVE - Free Report) .
Today's Bull of the Day is a bit of a departure from my usual Bull of the Day articles. I try to highlight a story that not everyone has heard. I like uncovering strength in earnings trends that perhaps people didn't know about. Much like my Bear of the Day articles highlight weakness in trends that I'm betting not everyone knows.
Today's Bull of the Day is the very well-known Meta Platforms. Meta is the company formerly known as Facebook. Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, Instagram, Messenger and WhatsApp.
I was surprised to see the sort of earnings growth numbers that Meta is forecast to deliver this year and next. Over the course of the last sixty days, two analysts have increased their earnings estimates for the current year while three have done so for next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $10.44 to $11.94 while next year's number is up from $12.92 to $14.92. This has translated to 21.46% earnings growth this year and 25.02% next year.
This is the reason why the stock is a Zacks Rank #1 (Strong Buy). These bullish estimates hit the wires prior to the company unveiling its Twitter competitor, Threads. With the early adoption numbers through the roof, this could be yet another source of earnings for the company. Over the first 20 hours, the app is said to have attracted over 20 million users.
Tech stocks have been exceptionally hot coming off the October lows. Those with some connection to AI have really been rocking and rolling. That is why we have seen huge moves in the likes of NVIDIA and AMD. Today's Bear of the Day is a stock in the Electronics – Semiconductor industry. It's Zacks Rank #5 (Strong Sell) Cirrus Logic.
Cirrus, a fabless semiconductor company, develops low-power, high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with digital signal processing; boosted amplifiers; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation.
The reason for the unfavorable Zacks Rank is the recent negative earnings estimate revisions coming from analysts. Over the last ninety days, two analysts have come in and cut estimates for the current year while one has done so for next year. The bearish sentiment has forced our Zacks Consensus Estimate down from $6.52 to $5.12 for the current year and down from $6.31 to $6.07 for next year.
That puts current year EPS forecasts at a 20.25% contraction with 18.61% growth next year. On the revenue side, that translates to a 9.59% contraction this year, with growth coming in at 11.68% next year.
The Electronics – Semiconductors industry ranks in the Bottom 29% of our Zacks Industry Rank.
Additional content:
3 Crypto Stocks to Gain From as Bitcoin Rally Continues
Cryptocurrencies, including Bitcoin, are putting up a good show this year. The picture, however, was dull in the second half of 2022, when the market took a beating, with experts suggesting the end of the crypto rally in 2023.
Bitcoin alone saw its market value tank by more than 65% last year. The slump in crypto was because of a series of unfortunate events — mainly the Terra Luna crash and a major fraud leading to the bankruptcy of FTX.
However, favorable economic conditions such as easing inflation, a weakening dollar and the Fed's decision to halt its interest rate hikes have raised optimism, driving Bitcoin higher.
Given this scenario, economists believe that the Bitcoin rally will continue for the remainder of 2023. This is likely to help stocks such as Hut 8 Mining Corp. and Bitfarms Ltd. and HIVE Blockchain Technologies Ltd..
Bitcoin Bounces Back
Over the past week, Bitcoin has seen a rapid surge, topping $31,000 on Jul 3. This came after a three-month low of $26,000 when the U.S. Securities and Exchange Commission filed a lawsuit against Binance, one of the prominent cryptocurrency exchanges.
In fact, 2023 is one of the best years for Bitcoin, with the cryptocurrency surging as much as 85.6% on a year-to-date basis.
It's worth noting that despite the decline suffered last year, Bitcoin's price is still maintaining a position above the 200-day simple moving average. This suggests a potential indication of a further upward movement or a positive trend in the future.
What Is Aiding the Rally?
Latest economic data that suggests cooling inflation prompted the Fed to pause its interest rate hikes in June after increasing it by 500 basis points since March 2022. Higher interest rates throughout last year weighed heavy on high-risk assets like tech stocks and digital coins. The pause in interest rates has thus raised optimism once again.
Moreover, the banking sector crisis, which shook the markets earlier this year with the failure of multiple regional banks, ignited recession fears. This saw many investors opting for digital assets as a safe bet rather than the regional banks.
Also, renewed interest among major financial institutions is driving the Bitcoin rally. Charles Schwab,Citadel Securities and Fidelity Digital Assets have been backing a newly formed cryptocurrency exchange EDX Markets. This exchange facilitates the trading of Bitcoin, along with other prominent digital assets.
Our Choices
From an investment standpoint, it will be a wise decision to make gains from Bitcoin's current upward trend. One way to do this is by focusing on companies that use Bitcoin and the technologies associated with it, such as blockchain. By keeping an eye on these companies, investors can potentially benefit from the growth and adoption of Bitcoin and its underlying technologies without directly investing in the cryptocurrency itself.
Hut 8 Mining Corp. is a cryptocurrency mining company based in North America. HUT offers computing power to mining pools and receives digital assets in return. The company caters to commercial clients in diverse sectors such as finance, healthcare and government, as well as those involved in digital assets, blockchain, gaming, virtual effects and Web 3.0.
Hut 8 Mining's expected earnings growth rate for the current year is 50%. Shares of HUT have gained 77.7% in the past 30 days. HUT presently carries a Zacks Rank #2 (Buy).
Bitfarms Ltd. is a Bitcoin mining company. BITF provides vertically integrated mining operations with onsite technical repair, proprietary data analytics and company-owned electrical engineering and installation services to deliver operational performance and uptime.
Bitfarms' expected earnings growth rate for the current year is 86.1%. Shares of BITF have gained 47.3% in the past 30 days. BITF presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
HIVE Blockchain Technologies Ltd. operates as a cryptocurrency mining firm. The company validates transactions on blockchain networks, as well as provides crypto mining and builds bridges between crypto and traditional capital markets.
HIVE Blockchain's expected earnings growth rate for the current year is 54.2%. Shares of HIVE have gained 66.8% in the past 30 days. HIVE presently carries a Zacks Rank #2.
Why Haven't You Looked at Zacks' Top Stocks?
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/performancefor information about the performance numbers displayed in this press release.
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Meta Platforms and Cirrus Logic have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 7, 2023 – Zacks Equity Research shares Meta Platforms (META - Free Report) as the Bull of the Day and Cirrus Logic (CRUS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Hut 8 Mining Corp. (HUT - Free Report) and Bitfarms Ltd. (BITF - Free Report) and HIVE Blockchain Technologies Ltd. (HIVE - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Today's Bull of the Day is a bit of a departure from my usual Bull of the Day articles. I try to highlight a story that not everyone has heard. I like uncovering strength in earnings trends that perhaps people didn't know about. Much like my Bear of the Day articles highlight weakness in trends that I'm betting not everyone knows.
Today's Bull of the Day is the very well-known Meta Platforms. Meta is the company formerly known as Facebook. Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, Instagram, Messenger and WhatsApp.
I was surprised to see the sort of earnings growth numbers that Meta is forecast to deliver this year and next. Over the course of the last sixty days, two analysts have increased their earnings estimates for the current year while three have done so for next year. The bullish moves have pushed up our Zacks Consensus Estimates for the current year from $10.44 to $11.94 while next year's number is up from $12.92 to $14.92. This has translated to 21.46% earnings growth this year and 25.02% next year.
This is the reason why the stock is a Zacks Rank #1 (Strong Buy). These bullish estimates hit the wires prior to the company unveiling its Twitter competitor, Threads. With the early adoption numbers through the roof, this could be yet another source of earnings for the company. Over the first 20 hours, the app is said to have attracted over 20 million users.
Bear of the Day:
Tech stocks have been exceptionally hot coming off the October lows. Those with some connection to AI have really been rocking and rolling. That is why we have seen huge moves in the likes of NVIDIA and AMD. Today's Bear of the Day is a stock in the Electronics – Semiconductor industry. It's Zacks Rank #5 (Strong Sell) Cirrus Logic.
Cirrus, a fabless semiconductor company, develops low-power, high-precision mixed-signal processing solutions in China, the United States, and internationally. The company offers audio products, including codecs components that integrate analog-to-digital converters (ADCs) and digital-to-analog converters (DACs) into a single integrated circuit (IC); smart codecs, a codec with digital signal processing; boosted amplifiers; standalone digital signal processors; and SoundClear technology, which consists of a portfolio of tools, software, and algorithms that helps to enhance user experience with features, such as louder, high-fidelity sound, audio playback, voice capture, and hearing augmentation.
The reason for the unfavorable Zacks Rank is the recent negative earnings estimate revisions coming from analysts. Over the last ninety days, two analysts have come in and cut estimates for the current year while one has done so for next year. The bearish sentiment has forced our Zacks Consensus Estimate down from $6.52 to $5.12 for the current year and down from $6.31 to $6.07 for next year.
That puts current year EPS forecasts at a 20.25% contraction with 18.61% growth next year. On the revenue side, that translates to a 9.59% contraction this year, with growth coming in at 11.68% next year.
The Electronics – Semiconductors industry ranks in the Bottom 29% of our Zacks Industry Rank.
Additional content:
3 Crypto Stocks to Gain From as Bitcoin Rally Continues
Cryptocurrencies, including Bitcoin, are putting up a good show this year. The picture, however, was dull in the second half of 2022, when the market took a beating, with experts suggesting the end of the crypto rally in 2023.
Bitcoin alone saw its market value tank by more than 65% last year. The slump in crypto was because of a series of unfortunate events — mainly the Terra Luna crash and a major fraud leading to the bankruptcy of FTX.
However, favorable economic conditions such as easing inflation, a weakening dollar and the Fed's decision to halt its interest rate hikes have raised optimism, driving Bitcoin higher.
Given this scenario, economists believe that the Bitcoin rally will continue for the remainder of 2023. This is likely to help stocks such as Hut 8 Mining Corp. and Bitfarms Ltd. and HIVE Blockchain Technologies Ltd..
Bitcoin Bounces Back
Over the past week, Bitcoin has seen a rapid surge, topping $31,000 on Jul 3. This came after a three-month low of $26,000 when the U.S. Securities and Exchange Commission filed a lawsuit against Binance, one of the prominent cryptocurrency exchanges.
In fact, 2023 is one of the best years for Bitcoin, with the cryptocurrency surging as much as 85.6% on a year-to-date basis.
It's worth noting that despite the decline suffered last year, Bitcoin's price is still maintaining a position above the 200-day simple moving average. This suggests a potential indication of a further upward movement or a positive trend in the future.
What Is Aiding the Rally?
Latest economic data that suggests cooling inflation prompted the Fed to pause its interest rate hikes in June after increasing it by 500 basis points since March 2022. Higher interest rates throughout last year weighed heavy on high-risk assets like tech stocks and digital coins. The pause in interest rates has thus raised optimism once again.
Moreover, the banking sector crisis, which shook the markets earlier this year with the failure of multiple regional banks, ignited recession fears. This saw many investors opting for digital assets as a safe bet rather than the regional banks.
Also, renewed interest among major financial institutions is driving the Bitcoin rally. Charles Schwab,Citadel Securities and Fidelity Digital Assets have been backing a newly formed cryptocurrency exchange EDX Markets. This exchange facilitates the trading of Bitcoin, along with other prominent digital assets.
Our Choices
From an investment standpoint, it will be a wise decision to make gains from Bitcoin's current upward trend. One way to do this is by focusing on companies that use Bitcoin and the technologies associated with it, such as blockchain. By keeping an eye on these companies, investors can potentially benefit from the growth and adoption of Bitcoin and its underlying technologies without directly investing in the cryptocurrency itself.
Hut 8 Mining Corp. is a cryptocurrency mining company based in North America. HUT offers computing power to mining pools and receives digital assets in return. The company caters to commercial clients in diverse sectors such as finance, healthcare and government, as well as those involved in digital assets, blockchain, gaming, virtual effects and Web 3.0.
Hut 8 Mining's expected earnings growth rate for the current year is 50%. Shares of HUT have gained 77.7% in the past 30 days. HUT presently carries a Zacks Rank #2 (Buy).
Bitfarms Ltd. is a Bitcoin mining company. BITF provides vertically integrated mining operations with onsite technical repair, proprietary data analytics and company-owned electrical engineering and installation services to deliver operational performance and uptime.
Bitfarms' expected earnings growth rate for the current year is 86.1%. Shares of BITF have gained 47.3% in the past 30 days. BITF presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
HIVE Blockchain Technologies Ltd. operates as a cryptocurrency mining firm. The company validates transactions on blockchain networks, as well as provides crypto mining and builds bridges between crypto and traditional capital markets.
HIVE Blockchain's expected earnings growth rate for the current year is 54.2%. Shares of HIVE have gained 66.8% in the past 30 days. HIVE presently carries a Zacks Rank #2.
Why Haven't You Looked at Zacks' Top Stocks?
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.
See Stocks Free >>
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Zacks Investment Research
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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/performancefor information about the performance numbers displayed in this press release.