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Dell and Brookline have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – November 9, 2023 – Zacks Equity Research shares Dell Technologies (DELL - Free Report) as the Bull of the Day and Brookline Bancorp (BRKL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wix.com (WIX - Free Report) and Keysight Technologies (KEYS - Free Report) .
In a recent Zacks Ultimate Strategy Session, I was asked what sector in the market I thought would lead heading into the end of the year. The favorites of yesteryear like energy or tech were not my choice. Rather, I thought that consumer discretionary was going to lead the way. My thinking was that folks were overly bearish on the US consumer given that student loan payments were set to un-freeze. If there’s one thing about American’s you can’t ever question, it’s our propensity to buy cool stuff to make us feel better. A little retail therapy so-to-speak.
Today’s Bull of the Day is a stock that benefits from consumer spending, but it’s also an enterprise play. I’m talking about Zacks Rank #1 (Strong Buy) Dell Technologies.Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
The reason for the favorable Zacks Rank is the recent positive earnings estimate revisions coming from analysts. Over the last sixty days, two analysts have upped the ante for both the current year and next year. It’s pushed up our Zacks Consensus Estimate for the current year from $5.55 to $6.33 while next year’s number is up from $6.12 to $6.99.
The company has been on an absolute heater when it comes to earnings reports. Last quarter’s 61 cent beat was the latest in a line of earnings beats dating back six consecutive quarters. While the company has been beating, estimates continue to rise. Estimates bottomed out in Q2 2023. Since then, they’ve continued to move up. That has helped the stock move from lows under $40 to over $70 where it closed on November 8th.
Last week’s rally saw the small caps take off. So far this week, that hasn’t been the case. One of the areas of the market that rallied so dramatically along with the small caps was the regional banks. Unfortunately, over the last few days, it’s also been one of the hardest hit spots. Some of these stocks have more reason than others to give up ground. One of them is today’s Bear of the Day, Brookline Bancorp.
Brookline Bancorp, Inc. operates as a bank holding company for the Brookline Bank that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include demand checking, NOW, money market, and savings accounts. The company's loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; loans and leases used to finance equipment for small businesses; financing for construction and development projects; and home equity and other consumer loans.
The stock is currently a Zacks Rank #5 (Strong Sell) in the Financial – Savings and Loan industry which ranks in the Bottom 40% of our Zacks Industry Rank. The reason for the unfavorable rank is that over the last thirty days, three analysts have cut their estimates for next year. The bearish sentiment has cut down our Zacks Consensus Estimate from $1.12 to 92 cents for next year. That represents a drop of 10.13% for next year. That’s coming on the heels of this year’s 29% contraction in earnings.
Additional content:
These Stocks Likely to Outpace Estimates This Earnings Season
The July-September 2023 quarter earnings season for the Zacks Computer and Technology sector has been relatively modest so far than what the market had expected earlier.
Most companies in the space beat consensus EPS and revenue estimates, backed by accelerated digital transformation initiatives and strong IT spending. However, continued supply-chain disruptions, inflationary pressure and labor market constraints hurt the top and bottom-line growth of tech companies.
Per the latest Earnings Trends report, as of Nov 1, 53.3% of the tech companies in the S&P 500 list, constituting nearly 56.4% of the sector’s market capitalization, reported earnings. Total earnings of these tech companies were up 20.8% from the same period last year on 4.3% higher revenues, with 90% beating EPS estimates and 65% beating revenue estimates.
Overall, third-quarter earnings of the Computer and Technology sector are expected to grow 18.9% on 3.9% higher revenues compared with earnings growth of 4.9% on 1.7% higher revenues in the prior year period. The tech sector’s growth pace is expected to continue.
Earnings of the Big 7 Tech Players — Microsoft, Alphabet, Meta, Nvidia, Apple, Tesla, and Amazon — are expected to be up 49% from the same period last year on 12.1% higher revenues.
Zeroing-In on Winners
As the third-quarter earnings season is drawing to a close, a few tech companies are yet to report their quarterly figures. Here, with the help of the Zacks proprietary methodology, we have highlighted three tech stocks that are expected to deliver a beat in their upcoming quarterly results.
With the presence of several industry participants, finding the right tech stocks with the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes this task fairly simple.
You could narrow down your choices by looking at stocks that have the perfect combination of two key elements: a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP is our proprietary methodology for determining stocks that have maximum chances of beating estimates in their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our research shows that for stocks with this favorable mix of ingredients, the odds of a positive earnings surprise are as high as 70%.
WIX’s third-quarter performance is likely to have benefited from strong bookings growth and an improvement in the user base. This apart, its focus on converting new users to paid subscribers, coupled with strong customer retention and increasing average revenue per subscription, is anticipated to have boosted third-quarter performance. The robust uptake of AI Text Creator as well as Wix Editor and other new e-commerce applications, is likely to drive its results.
AI Text Creator enables Wix Editor users to create, manage and grow their online presence with quality site content. The company’s cost reduction initiative is expected to have cushioned its margin performance. WIX expects annual recurring revenues to be driven by incremental subscriptions from the ramping up of its Partners business on its core Self Creators base.
The Zacks Consensus Estimate for earnings has risen 5.5% to 77 cents per share in the past 30 days.
Dell Technologies is slated to report third-quarter fiscal 2024 results on Nov 30. The company currently has an Earnings ESP of +0.80% and sports a Zacks Rank #1.
The company is expanding its Generative AI solutions portfolio, which is expected to have accelerated top-line growth in the to-be-reported quarter. Dell’s latest security services and solutions are expected to have helped enterprises protect their systems from threats, respond to attacks and secure their devices, systems and clouds.
It is expanding the capabilities of Managed Detection and Response solutions with the latest Pro Plus, which is a fully managed security operations solution. For the third quarter of fiscal 2024, DELL expects total revenues between $22.5 million and $23.5 billion, with a midpoint of $23 billion.
The Zacks Consensus Estimate for earnings has increased by a penny to $1.47 per share in the past 30 days.
Keysight Technologies is slated to report fourth-quarter fiscal 2024 results on Nov 20. The company currently has an Earnings ESP of +0.18% and a Zacks Rank #3.
The company’s top line is expected to have benefited from steady demand for electronic design and test solutions. Its approach of collaborating with leading organizations to accelerate innovation and strategic buyouts is strengthening its portfolio and is likely to have supported the top line during the quarter.
Keysight has been gaining traction with strong industry-wide growth. It is witnessing solid adoption of its electronic design and test solutions. Electronic devices form the fulcrum of IoT services, wireless devices, data centers and 5G technologies. The rapid adoption of these devices has been increasing demand for electronics testing equipment.
The Zacks Consensus Estimate for earnings has remained steady at $1.87 per share in the past 30 days.
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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Dell and Brookline have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – November 9, 2023 – Zacks Equity Research shares Dell Technologies (DELL - Free Report) as the Bull of the Day and Brookline Bancorp (BRKL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wix.com (WIX - Free Report) and Keysight Technologies (KEYS - Free Report) .
Here is a synopsis of all four stocks.
Bull of the Day:
In a recent Zacks Ultimate Strategy Session, I was asked what sector in the market I thought would lead heading into the end of the year. The favorites of yesteryear like energy or tech were not my choice. Rather, I thought that consumer discretionary was going to lead the way. My thinking was that folks were overly bearish on the US consumer given that student loan payments were set to un-freeze. If there’s one thing about American’s you can’t ever question, it’s our propensity to buy cool stuff to make us feel better. A little retail therapy so-to-speak.
Today’s Bull of the Day is a stock that benefits from consumer spending, but it’s also an enterprise play. I’m talking about Zacks Rank #1 (Strong Buy) Dell Technologies.Dell Technologies Inc. designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).
The reason for the favorable Zacks Rank is the recent positive earnings estimate revisions coming from analysts. Over the last sixty days, two analysts have upped the ante for both the current year and next year. It’s pushed up our Zacks Consensus Estimate for the current year from $5.55 to $6.33 while next year’s number is up from $6.12 to $6.99.
The company has been on an absolute heater when it comes to earnings reports. Last quarter’s 61 cent beat was the latest in a line of earnings beats dating back six consecutive quarters. While the company has been beating, estimates continue to rise. Estimates bottomed out in Q2 2023. Since then, they’ve continued to move up. That has helped the stock move from lows under $40 to over $70 where it closed on November 8th.
Bear of the Day:
Last week’s rally saw the small caps take off. So far this week, that hasn’t been the case. One of the areas of the market that rallied so dramatically along with the small caps was the regional banks. Unfortunately, over the last few days, it’s also been one of the hardest hit spots. Some of these stocks have more reason than others to give up ground. One of them is today’s Bear of the Day, Brookline Bancorp.
Brookline Bancorp, Inc. operates as a bank holding company for the Brookline Bank that provide commercial, business, and retail banking services to corporate, municipal, and retail customers in the United States. Its deposit products include demand checking, NOW, money market, and savings accounts. The company's loan portfolio primarily comprises first mortgage loans secured by commercial, multi-family, and residential real estate properties; loans to business entities comprising commercial lines of credit; loans to condominium associations; loans and leases used to finance equipment for small businesses; financing for construction and development projects; and home equity and other consumer loans.
The stock is currently a Zacks Rank #5 (Strong Sell) in the Financial – Savings and Loan industry which ranks in the Bottom 40% of our Zacks Industry Rank. The reason for the unfavorable rank is that over the last thirty days, three analysts have cut their estimates for next year. The bearish sentiment has cut down our Zacks Consensus Estimate from $1.12 to 92 cents for next year. That represents a drop of 10.13% for next year. That’s coming on the heels of this year’s 29% contraction in earnings.
Additional content:
These Stocks Likely to Outpace Estimates This Earnings Season
The July-September 2023 quarter earnings season for the Zacks Computer and Technology sector has been relatively modest so far than what the market had expected earlier.
Most companies in the space beat consensus EPS and revenue estimates, backed by accelerated digital transformation initiatives and strong IT spending. However, continued supply-chain disruptions, inflationary pressure and labor market constraints hurt the top and bottom-line growth of tech companies.
Per the latest Earnings Trends report, as of Nov 1, 53.3% of the tech companies in the S&P 500 list, constituting nearly 56.4% of the sector’s market capitalization, reported earnings. Total earnings of these tech companies were up 20.8% from the same period last year on 4.3% higher revenues, with 90% beating EPS estimates and 65% beating revenue estimates.
Overall, third-quarter earnings of the Computer and Technology sector are expected to grow 18.9% on 3.9% higher revenues compared with earnings growth of 4.9% on 1.7% higher revenues in the prior year period. The tech sector’s growth pace is expected to continue.
Earnings of the Big 7 Tech Players — Microsoft, Alphabet, Meta, Nvidia, Apple, Tesla, and Amazon — are expected to be up 49% from the same period last year on 12.1% higher revenues.
Zeroing-In on Winners
As the third-quarter earnings season is drawing to a close, a few tech companies are yet to report their quarterly figures. Here, with the help of the Zacks proprietary methodology, we have highlighted three tech stocks that are expected to deliver a beat in their upcoming quarterly results.
With the presence of several industry participants, finding the right tech stocks with the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes this task fairly simple.
You could narrow down your choices by looking at stocks that have the perfect combination of two key elements: a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP is our proprietary methodology for determining stocks that have maximum chances of beating estimates in their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our research shows that for stocks with this favorable mix of ingredients, the odds of a positive earnings surprise are as high as 70%.
3 Tech Stocks That Match the Criteria
Wix.com is slated to report third-quarter results on Nov 9. The company currently has an Earnings ESP of +20.19% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
WIX’s third-quarter performance is likely to have benefited from strong bookings growth and an improvement in the user base. This apart, its focus on converting new users to paid subscribers, coupled with strong customer retention and increasing average revenue per subscription, is anticipated to have boosted third-quarter performance. The robust uptake of AI Text Creator as well as Wix Editor and other new e-commerce applications, is likely to drive its results.
AI Text Creator enables Wix Editor users to create, manage and grow their online presence with quality site content. The company’s cost reduction initiative is expected to have cushioned its margin performance. WIX expects annual recurring revenues to be driven by incremental subscriptions from the ramping up of its Partners business on its core Self Creators base.
The Zacks Consensus Estimate for earnings has risen 5.5% to 77 cents per share in the past 30 days.
Wix.com Ltd. price-eps-surprise | Wix.com Ltd. Quote
Dell Technologies is slated to report third-quarter fiscal 2024 results on Nov 30. The company currently has an Earnings ESP of +0.80% and sports a Zacks Rank #1.
The company is expanding its Generative AI solutions portfolio, which is expected to have accelerated top-line growth in the to-be-reported quarter. Dell’s latest security services and solutions are expected to have helped enterprises protect their systems from threats, respond to attacks and secure their devices, systems and clouds.
It is expanding the capabilities of Managed Detection and Response solutions with the latest Pro Plus, which is a fully managed security operations solution. For the third quarter of fiscal 2024, DELL expects total revenues between $22.5 million and $23.5 billion, with a midpoint of $23 billion.
The Zacks Consensus Estimate for earnings has increased by a penny to $1.47 per share in the past 30 days.
Dell Technologies Inc. price-eps-surprise | Dell Technologies Inc. Quote
Keysight Technologies is slated to report fourth-quarter fiscal 2024 results on Nov 20. The company currently has an Earnings ESP of +0.18% and a Zacks Rank #3.
The company’s top line is expected to have benefited from steady demand for electronic design and test solutions. Its approach of collaborating with leading organizations to accelerate innovation and strategic buyouts is strengthening its portfolio and is likely to have supported the top line during the quarter.
Keysight has been gaining traction with strong industry-wide growth. It is witnessing solid adoption of its electronic design and test solutions. Electronic devices form the fulcrum of IoT services, wireless devices, data centers and 5G technologies. The rapid adoption of these devices has been increasing demand for electronics testing equipment.
The Zacks Consensus Estimate for earnings has remained steady at $1.87 per share in the past 30 days.
Keysight Technologies Inc. price-eps-surprise | Keysight Technologies 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.