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Uber and DICK's Sporting Goods have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 19, 2023 – Zacks Equity Research shares Uber Technologies (UBER - Free Report) as the Bull of the Day and DICK'S Sporting Goods (DKS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Urban Outfitters (URBN - Free Report) , Ross Stores (ROST - Free Report) and The TJX Companies (TJX - Free Report) .
Uber Technologies’ platform provides access to transportation and food delivery services. In addition, the company’s network also connects shippers and carriers in the freight industry, offering transportation management and other additional logistics services.
Analysts have taken a favorable stance on the company’s earnings outlook, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy). The revisions trend has been particularly notable for its current fiscal year, with the Zacks Consensus EPS Estimate of $0.42 up 450% since October of last year.
Uber resides in the Zacks Internet – Services industry, which is currently ranked in the top 38% of all Zacks industries. Aside from the favorable earnings outlook and industry standing, let’s take a closer look at a few other characteristics of the company.
Uber Technologies
Uber shares could be a target among growth-focused investors, further reflected by its Style Score of “A” for Growth. The company’s earnings are forecasted to see 110% growth on 18% higher revenues in its current year, with expectations for FY24 suggesting 160% earnings growth paired with an 18% sales bump.
The company’s revenue growth has been robust, as illustrated below. FY22 revenue of $31.9 billion reflects a +200% increase from FY18 sales of $10.4 billion. Please note that the current value for 2023 is on a trailing twelve-month basis.
Uber’s latest quarterly results were aided by continued business momentum, with Trips growing 22% year-over-year to 2.3 billion and Gross Bookings improving 16% from the year-ago period. Impressively, the company posted record quarterly free cash flow of $1.1 billion.
As shown below, the company has consistently exceeded the Zacks Consensus Estimate for quarterly Trips as of late. Regarding the upcoming release expected on November 7th, we currently expect Uber to post Trips of 2.4 billion, reflecting a change of +21% from the same period last year. As reflected by these expectations, business momentum looks set to continue.
It’s also worth noting that shares have respected their 200-day daily moving average, finding buyers at the level in late April. Given the recent volatility in the market and sideways action of shares over the last several months, this level could potentially be re-tested in the coming periods.
To touch further on the release expected on November 7th, the Zacks Consensus EPS Estimate of $0.13 reflects a change of +120% from the year-ago period. Analysts raised their expectations notably for the print following Uber’s latest release in early August and have remained unchanged since.
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.
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.
Uber Technologies would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
DICK'S Sporting Goods operates as a major omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, and more.
Analysts have taken their earnings expectations lower, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
The company resides in the Zacks Retail – Miscellaneous industry, which is currently ranked in the bottom 25% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.
DICK’S Sporting Goods
DKS shares have faced adverse price action over the last three months, down 18% and widely underperforming relative to the general market. As circled below, the company’s latest quarterly release was met with a wave of sellers.
Elevated inventory shrink was the primary driver behind the negative knee-jerk reaction among market participants, which massively affected the company’s profitability throughout the period. Further, DICK’S lowered its current year EPS outlook, adding fuel to the fire sale within shares.
Regarding top and bottom line expectations in the above-mentioned quarter, the company fell short of the Zacks Consensus EPS Estimate handily and posted a modest revenue surprise. DKS’ revenue has primarily remained stagnant over the last few years.
Shares now yield a respectable 3.6% annually, nicely above the company’s respective Zacks industry average. Earlier in the year, DICK’S boosted its dividend payout by 105%, continuing its commitment to increasingly rewarding shareholders.
The company’s earnings are forecasted to pull back 2% this year on 4% higher revenues, further reflecting the profitability crunch DKS has experienced. Still, growth resumes in FY25, with Zacks Consensus Estimates suggesting a 5% earnings bump paired with a 3% sales improvement on a year-over-year basis.
Bottom Line
Negative earnings estimate revisions from analysts and crunched profitability stemming from elevated inventory shrink paint a challenging picture for the company’s shares in the near term.
DICK’S Sporting Goods 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.
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.
Despite the challenges posed by a higher interest rate environment, U.S. retail sales maintained a positive trajectory in September. Consumer spending, a pivotal force propelling the economy, remained robust as Americans increased their expenditures on motor vehicles, restaurants and bars.
The buoyancy in consumer spending is underpinned by a robust labor market and wage increases. As fears of a looming recession dissipate, consumer confidence is making a comeback. In September, the economy generated an impressive 336,000 jobs, reinforcing the momentum behind this upward trend in consumer spending.
September marked the sixth consecutive month of gains in retail sales. While there was a spike in retail spending on fuel, growth in expenditures on other items remained relatively decent.
A Peek Into Retail Sales Numbers
The Commerce Department reported a sequential increase of 0.7% in U.S. retail and food services sales for September, reaching a total of $704.9 billion. This followed a revised reading of a 0.8% increase registered in August. Impressively, September retail sales rose 3.8% from the year-ago period.
The Commerce Department's latest report reveals a diverse range of trends in retail sales. Motor vehicle & parts dealers saw an increase of 1% in sales on a sequential basis. Both food & beverage stores and general merchandise stores posted growth of 0.4%.
Gasoline stations witnessed a rise of 0.9% in receipts. Sales at health & personal care stores rose 0.8%, while food services & drinking places saw a 0.9% increase. Miscellaneous stores witnessed a rise of 3% in sales. Non-store retailers reported a sales increase of 1.1%.
However, the picture was less optimistic for building material & supplies dealers, where sales declined 0.2%. Electronics & appliance stores reported a drop of 0.8%. Clothing & clothing accessories outlets also saw a decline of 0.8%.
Interestingly, sporting goods, hobbies, musical instruments & bookstores and furniture & home furnishing stores reported unchanged sales last month.
4 Prominent Picks
Urban Outfitters is worth betting on. This leading lifestyle product and services company seems a promising bet due to its solid business strategies and sound fundamentals. Management has been strengthening its direct-to-consumer business, enhancing productivity across existing channels and optimizing inventory levels. URBN’s strategic growth initiative, FP Movement and store-growth endeavors are also impressive.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal sales and EPS suggests growth of 6.6% and 83.4%, respectively, from the year-ago reported figure. URBN has a trailing four-quarter earnings surprise of 19.2%, on average. This Zacks Rank #1 (Strong Buy) company has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can count on Ross Stores. The store expansion strategy, combined with the company's strong brand reputation and off-price retail model, positions Ross Stores for success in the dynamic retail landscape. The company has ambitious goals, aiming to reach at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations over time. By expanding its store network, the company strengthens brand visibility, captures new customer segments and unlocks potential sales growth.
This operator of off-price retail apparel and home fashion stores delivered a trailing four-quarter earnings surprise of 11.4%, on average. The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago period. ROST, which presently carries a Zacks Rank #2, has a VGM Score of B.
The TJX Companies is also worth betting on. This Framingham, MA-based company’s flexible off-price business model, store expansion strategies, strong vendor relationship and availability of branded merchandise provide tremendous opportunities to drive sales and traffic. TJX's expansion initiatives and focus on technological integration, including data analytics and e-commerce advancements, underscore its adaptability to evolving market trends.
The Zacks Consensus Estimate for TJX Companies’ current fiscal sales and EPS suggests growth of 7.5% and 19.3%, respectively, from the year-ago reported figure. This Zacks Rank #2 stock has a trailing four-quarter earnings surprise of 6.6%, on average. The company has a VGM Score of B.
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/performance for information about the performance numbers displayed in this press release.
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Uber and DICK's Sporting Goods have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – October 19, 2023 – Zacks Equity Research shares Uber Technologies (UBER - Free Report) as the Bull of the Day and DICK'S Sporting Goods (DKS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Urban Outfitters (URBN - Free Report) , Ross Stores (ROST - Free Report) and The TJX Companies (TJX - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Uber Technologies’ platform provides access to transportation and food delivery services. In addition, the company’s network also connects shippers and carriers in the freight industry, offering transportation management and other additional logistics services.
Analysts have taken a favorable stance on the company’s earnings outlook, helping land the stock into the highly-coveted Zacks Rank #1 (Strong Buy). The revisions trend has been particularly notable for its current fiscal year, with the Zacks Consensus EPS Estimate of $0.42 up 450% since October of last year.
Uber resides in the Zacks Internet – Services industry, which is currently ranked in the top 38% of all Zacks industries. Aside from the favorable earnings outlook and industry standing, let’s take a closer look at a few other characteristics of the company.
Uber Technologies
Uber shares could be a target among growth-focused investors, further reflected by its Style Score of “A” for Growth. The company’s earnings are forecasted to see 110% growth on 18% higher revenues in its current year, with expectations for FY24 suggesting 160% earnings growth paired with an 18% sales bump.
The company’s revenue growth has been robust, as illustrated below. FY22 revenue of $31.9 billion reflects a +200% increase from FY18 sales of $10.4 billion. Please note that the current value for 2023 is on a trailing twelve-month basis.
Uber’s latest quarterly results were aided by continued business momentum, with Trips growing 22% year-over-year to 2.3 billion and Gross Bookings improving 16% from the year-ago period. Impressively, the company posted record quarterly free cash flow of $1.1 billion.
As shown below, the company has consistently exceeded the Zacks Consensus Estimate for quarterly Trips as of late. Regarding the upcoming release expected on November 7th, we currently expect Uber to post Trips of 2.4 billion, reflecting a change of +21% from the same period last year. As reflected by these expectations, business momentum looks set to continue.
It’s also worth noting that shares have respected their 200-day daily moving average, finding buyers at the level in late April. Given the recent volatility in the market and sideways action of shares over the last several months, this level could potentially be re-tested in the coming periods.
To touch further on the release expected on November 7th, the Zacks Consensus EPS Estimate of $0.13 reflects a change of +120% from the year-ago period. Analysts raised their expectations notably for the print following Uber’s latest release in early August and have remained unchanged since.
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.
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.
Uber Technologies would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
DICK'S Sporting Goods operates as a major omnichannel sporting goods retailer, offering athletic shoes, apparel, accessories, and a broad selection of outdoor and athletic equipment for team sports, fitness, camping, and more.
Analysts have taken their earnings expectations lower, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
The company resides in the Zacks Retail – Miscellaneous industry, which is currently ranked in the bottom 25% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.
DICK’S Sporting Goods
DKS shares have faced adverse price action over the last three months, down 18% and widely underperforming relative to the general market. As circled below, the company’s latest quarterly release was met with a wave of sellers.
Elevated inventory shrink was the primary driver behind the negative knee-jerk reaction among market participants, which massively affected the company’s profitability throughout the period. Further, DICK’S lowered its current year EPS outlook, adding fuel to the fire sale within shares.
Regarding top and bottom line expectations in the above-mentioned quarter, the company fell short of the Zacks Consensus EPS Estimate handily and posted a modest revenue surprise. DKS’ revenue has primarily remained stagnant over the last few years.
Shares now yield a respectable 3.6% annually, nicely above the company’s respective Zacks industry average. Earlier in the year, DICK’S boosted its dividend payout by 105%, continuing its commitment to increasingly rewarding shareholders.
The company’s earnings are forecasted to pull back 2% this year on 4% higher revenues, further reflecting the profitability crunch DKS has experienced. Still, growth resumes in FY25, with Zacks Consensus Estimates suggesting a 5% earnings bump paired with a 3% sales improvement on a year-over-year basis.
Bottom Line
Negative earnings estimate revisions from analysts and crunched profitability stemming from elevated inventory shrink paint a challenging picture for the company’s shares in the near term.
DICK’S Sporting Goods 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.
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 >>
Additional content:
3 Promising Stocks to Add as Retail Sales Rise
Despite the challenges posed by a higher interest rate environment, U.S. retail sales maintained a positive trajectory in September. Consumer spending, a pivotal force propelling the economy, remained robust as Americans increased their expenditures on motor vehicles, restaurants and bars.
The buoyancy in consumer spending is underpinned by a robust labor market and wage increases. As fears of a looming recession dissipate, consumer confidence is making a comeback. In September, the economy generated an impressive 336,000 jobs, reinforcing the momentum behind this upward trend in consumer spending.
September marked the sixth consecutive month of gains in retail sales. While there was a spike in retail spending on fuel, growth in expenditures on other items remained relatively decent.
A Peek Into Retail Sales Numbers
The Commerce Department reported a sequential increase of 0.7% in U.S. retail and food services sales for September, reaching a total of $704.9 billion. This followed a revised reading of a 0.8% increase registered in August. Impressively, September retail sales rose 3.8% from the year-ago period.
The Commerce Department's latest report reveals a diverse range of trends in retail sales. Motor vehicle & parts dealers saw an increase of 1% in sales on a sequential basis. Both food & beverage stores and general merchandise stores posted growth of 0.4%.
Gasoline stations witnessed a rise of 0.9% in receipts. Sales at health & personal care stores rose 0.8%, while food services & drinking places saw a 0.9% increase. Miscellaneous stores witnessed a rise of 3% in sales. Non-store retailers reported a sales increase of 1.1%.
However, the picture was less optimistic for building material & supplies dealers, where sales declined 0.2%. Electronics & appliance stores reported a drop of 0.8%. Clothing & clothing accessories outlets also saw a decline of 0.8%.
Interestingly, sporting goods, hobbies, musical instruments & bookstores and furniture & home furnishing stores reported unchanged sales last month.
4 Prominent Picks
Urban Outfitters is worth betting on. This leading lifestyle product and services company seems a promising bet due to its solid business strategies and sound fundamentals. Management has been strengthening its direct-to-consumer business, enhancing productivity across existing channels and optimizing inventory levels. URBN’s strategic growth initiative, FP Movement and store-growth endeavors are also impressive.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal sales and EPS suggests growth of 6.6% and 83.4%, respectively, from the year-ago reported figure. URBN has a trailing four-quarter earnings surprise of 19.2%, on average. This Zacks Rank #1 (Strong Buy) company has a VGM Score of B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Investors can count on Ross Stores. The store expansion strategy, combined with the company's strong brand reputation and off-price retail model, positions Ross Stores for success in the dynamic retail landscape. The company has ambitious goals, aiming to reach at least 2,900 Ross Dress for Less and 700 dd's DISCOUNTS locations over time. By expanding its store network, the company strengthens brand visibility, captures new customer segments and unlocks potential sales growth.
This operator of off-price retail apparel and home fashion stores delivered a trailing four-quarter earnings surprise of 11.4%, on average. The Zacks Consensus Estimate for Ross Stores’ current financial-year sales and EPS suggests growth of 7.1% and 19.4%, respectively, from the year-ago period. ROST, which presently carries a Zacks Rank #2, has a VGM Score of B.
The TJX Companies is also worth betting on. This Framingham, MA-based company’s flexible off-price business model, store expansion strategies, strong vendor relationship and availability of branded merchandise provide tremendous opportunities to drive sales and traffic. TJX's expansion initiatives and focus on technological integration, including data analytics and e-commerce advancements, underscore its adaptability to evolving market trends.
The Zacks Consensus Estimate for TJX Companies’ current fiscal sales and EPS suggests growth of 7.5% and 19.3%, respectively, from the year-ago reported figure. This Zacks Rank #2 stock has a trailing four-quarter earnings surprise of 6.6%, on average. The company has a VGM Score of B.
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 >>
Media Contact
Zacks Investment Research
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https://www.zacks.com
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.