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Rocky Brands and Skyworks Solutions have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – November 22, 2023 – Zacks Equity Research shares Rocky Brands (RCKY - Free Report) as the Bull of the Day and Skyworks Solutions (SWKS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Airlines Group Inc. (AAL - Free Report) , United Airlines Holdings, Inc. (UAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) .
Boasting a Zacks Rank #1 (Strong Buy) and landing the Bull of the Day, Rocky Brands is a trending retail apparel stock to consider right now. Rocky Brands' Zacks Shoes and Retail Apparel Industry is currently in the top 16% of over 250 Zacks industries with other standouts including Adidas and Skechers.
However, after crushing third quarter top and bottom line expectations earlier in the month the strengthening outlook of Rocky Brands may be the most compelling at the moment.
Q3 Review: As a leading provider of premium quality footwear and apparel Rocky Brands Q3 earnings of $1.09 per share impressively topped the Zacks Consensus of $0.31 a share by a whopping 251%. Plus, sales of $125.61 million came in 11% better than expected.
Rocky Brands attributed the strong results to product improvement which resulted in reduced inventory levels and an acceleration in at-once orders from key wholesale partners with some of the company's brands including Rocky Outdoor Gear, Durango, and Dickies.
Year over year, Rocky Brands' Q3 earnings soared 47% from $0.74 a share in the prior year quarter despite sales falling -15%. Amid broader economic headwinds, Rocky Brands' retail segment sales did increase 4.7% YoY which is a great sign as the holiday shopping season is upon us and inventories decreased 26.5% from a year ago.
Soaring Earnings Estimates: Alluding to more upside in Rocky Brands stock is that annual earnings estimates have soared over the last 30 days. Fiscal 2023 earnings estimates have skyrocketed 132% to $1.74 a share compared to estimates of $0.75 per share a month ago. Even better, FY24 EPS estimates have climbed 53% to $2.55 per share compared to estimates of $1.66 a share 30 days ago.
Attractive Valuation: Trading around $25 a share, Rocky Brands stock is up a respectable +8% this year and the company's P/E valuation also points to the plausibility of more upside. Supported by rising EPS estimates Rocky Brands stock trades at a 14.8X forward earnings multiple which is a slight discount to its industry average of 15.2X and nicely beneath the S&P 500's 21.3X.
Generous Dividend: Rocky Brands may not be as renowned as some of its well-known industry peers like Nike (NKE), Adidas, or even Skechers but the company's payout to shareholders shouldn't be overlooked.
Rocky Brands' 2.4% annual dividend yield is above the benchmark's 1.42% average and easily tops Adidas' 0.24% and Nike's 1.28% while Skechers doesn't offer a payout at the moment.
Bottom Line
With the holiday shopping season beginning, Rocky Brands stock is very attractive and now may be an ideal time to buy RCKY shares after the company's very impressive Q3 report showed increased profitability, product improvement, and reduced inventory.
Providing a broad range of high-performance analog and mixed-signal semiconductors, the long-term outlook of Skyworks Solutions is still favorable but short-term risks lie ahead.
Specifically, Skyworks products are used in applications within the aerospace, automotive, broadband, and cellular infrastructure markets among others that relate to radio frequency.
Unfortunately, the Zacks Semiconductors-Radio Frequency Industry is currently in the bottom 14% of over 250 Zacks industries and investors may want to be cautious of Skyworks' stock at the moment which lands a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
Industry Challenges & Declining Earnings Estimates
Broader economic uncertainties including higher inflation and rising interest rates have had a dismal effect on the companies within the Zacks Semiconductors-Radio Frequency Industry most notably Skyworks and Akoustis Technologies (AKTS).
Declining earnings estimates are indicative of such and suggest more short-term weakness ahead with Skyworks starting to take the brunt of its industry's weakening outlook as a leader in the space. To that point, earnings estimates for Skyworks' current fiscal 2024 have fallen -19% in the last 30 days from $8.95 per share to $7.21 a share. More concerning, FY25 EPS estimates have dropped -16% over the last month from $10.41 per share to $8.70 a share.
Stagnant Price Performance
Making the glaring drop in annual earnings estimates look even more bleak is that Skyworks' price performance and the inflationary recovery of the Semiconductor-Radio Frequency Industry have largely trailed the broader indexes.
While the S&P 500 and Nasdaq have rebounded and soared +19% and +36% this year respectively Skyworks' stock is up a modest +3% with its Zacks Subindustry down -2%. Furthermore, over the last three years, Skyworks stock is still down -32% and its Zacks Subindustry has fallen -44% to largely trail the S&P 500's +27% and the Nasdaq's +19%.
Bottom Line
Given the poor price performance of Skyworks stock over the last few years the large decline in annual earnings estimates in the last month is definitely concerning. It appears that selling or avoiding Skyworks stock may be the right move at the moment as there could be much better opportunities ahead.
Additional content:
3 Airline Stocks in Focus Ahead of Thanksgiving
Soaring fuel and labor costs have been eating into the profits of airlines, but the holiday season is expected to turn things in favor of airline companies. The holiday season is an important window for airlines to boost revenues, and this Thanksgiving holiday period is expected to be one of the busiest ones in recent times.
Hence, investors should utilize this opportunity and invest in airline stocks like American Airlines Group Inc., United Airlines Holdings, Inc. and Delta Air Lines, Inc..
Thanksgiving Travel to Soar
Airlines took a major hit during the peak of the pandemic and the year after that as travel came to a standstill. However, the industry has since recovered from historic lows and is now gearing up for the upcoming holiday season, which is projected to see a record volume of passenger traffic.
A staggering 30 million passengers are expected to be screened between Nov 17 and Nov 28, hitting a record high, the Transportation Security Administration said.
The Sunday following Thanksgiving is projected to be the busiest day within this timeframe, with an estimated 2.9 million passengers expected to travel by air.
Weather played spoilsport last year during this time, compelling several airlines to cancel thousands of flights across the country. However, most airlines this year are ready to handle the situation more efficiently.
According to the Federal Aviation Administration, Thanksgiving flights are expected to peak at 49,606 on the Wednesday preceding the holiday, surpassing last year's record of 48,192.
Expectations of record passenger traffic are high this year, particularly after airlines recorded robust traffic volumes during the Labor Day weekend.
Pent-up demand has soared since the removal of the pandemic-induced restrictions. Although higher fuel and labor costs have been posing major challenges for the airline industry, optimism is high surrounding air travel this year.
This has seen airlines gearing up to accommodate more passengers and adding 253,000 more seats per day during the period. Also, lucrative discounts are being offered to lure flyers.
According to flight-tracking site Hopper, Thanksgiving flight deals are currently averaging $248 for domestic round trips. This reflects a decrease from $271 last year and $276 in 2019, the pre-pandemic time.
According to the latest U.S. inflation report from the Department of Labor, overall airfare has declined more than 13%.
Our Choices
Given this situation, it would be ideal to invest in airline stocks.
American Airlines Group Inc.'s wholly owned subsidiaries are American Airlines, Envoy Aviation Group, PSA Airlines and Piedmont Airlines. AAL's primary business is to provide passenger and cargo services.
American Airlines Group's expected earnings growth rate for the current year is 378%. Shares of AAL have gained 7.3% in the past 30 days. American Airlines Grouppresently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
United Airlines Holdings, Inc. transports people and cargo not only throughout North America but also to destinations in Asia, Europe, the Middle East and Latin America. UAL's hubs are at Newark Liberty International Airport, Chicago O'Hare International Airport, Denver International Airport, George Bush Intercontinental Airport, Los Angeles International Airport, A.B. Won Pat International Airport, San Francisco International Airport and Washington Dulles International Airport.
United Airlines Holdings' expected earnings growth rate for the current year is 286.9%. Shares of UAL have gained 10.4% in the past 30 days. United Airlines Holdings presently has a Zacks Rank #3.
Delta Air Lines, Inc. is one of the four carriers that controls the majority of the U.S. aviation market (the carriers account for more than 60% of the domestic market share).
Delta Air Lines' expected earnings growth rate for the current year is 90.6%. Shares of Dal have gained 10.2% in the past 30 days. Delta Air Lines currently has a Zacks Rank #3.
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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Rocky Brands and Skyworks Solutions have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – November 22, 2023 – Zacks Equity Research shares Rocky Brands (RCKY - Free Report) as the Bull of the Day and Skyworks Solutions (SWKS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Airlines Group Inc. (AAL - Free Report) , United Airlines Holdings, Inc. (UAL - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Boasting a Zacks Rank #1 (Strong Buy) and landing the Bull of the Day, Rocky Brands is a trending retail apparel stock to consider right now. Rocky Brands' Zacks Shoes and Retail Apparel Industry is currently in the top 16% of over 250 Zacks industries with other standouts including Adidas and Skechers.
However, after crushing third quarter top and bottom line expectations earlier in the month the strengthening outlook of Rocky Brands may be the most compelling at the moment.
Q3 Review: As a leading provider of premium quality footwear and apparel Rocky Brands Q3 earnings of $1.09 per share impressively topped the Zacks Consensus of $0.31 a share by a whopping 251%. Plus, sales of $125.61 million came in 11% better than expected.
Rocky Brands attributed the strong results to product improvement which resulted in reduced inventory levels and an acceleration in at-once orders from key wholesale partners with some of the company's brands including Rocky Outdoor Gear, Durango, and Dickies.
Year over year, Rocky Brands' Q3 earnings soared 47% from $0.74 a share in the prior year quarter despite sales falling -15%. Amid broader economic headwinds, Rocky Brands' retail segment sales did increase 4.7% YoY which is a great sign as the holiday shopping season is upon us and inventories decreased 26.5% from a year ago.
Soaring Earnings Estimates: Alluding to more upside in Rocky Brands stock is that annual earnings estimates have soared over the last 30 days. Fiscal 2023 earnings estimates have skyrocketed 132% to $1.74 a share compared to estimates of $0.75 per share a month ago. Even better, FY24 EPS estimates have climbed 53% to $2.55 per share compared to estimates of $1.66 a share 30 days ago.
Attractive Valuation: Trading around $25 a share, Rocky Brands stock is up a respectable +8% this year and the company's P/E valuation also points to the plausibility of more upside. Supported by rising EPS estimates Rocky Brands stock trades at a 14.8X forward earnings multiple which is a slight discount to its industry average of 15.2X and nicely beneath the S&P 500's 21.3X.
Generous Dividend: Rocky Brands may not be as renowned as some of its well-known industry peers like Nike (NKE), Adidas, or even Skechers but the company's payout to shareholders shouldn't be overlooked.
Rocky Brands' 2.4% annual dividend yield is above the benchmark's 1.42% average and easily tops Adidas' 0.24% and Nike's 1.28% while Skechers doesn't offer a payout at the moment.
Bottom Line
With the holiday shopping season beginning, Rocky Brands stock is very attractive and now may be an ideal time to buy RCKY shares after the company's very impressive Q3 report showed increased profitability, product improvement, and reduced inventory.
Bear of the Day:
Providing a broad range of high-performance analog and mixed-signal semiconductors, the long-term outlook of Skyworks Solutions is still favorable but short-term risks lie ahead.
Specifically, Skyworks products are used in applications within the aerospace, automotive, broadband, and cellular infrastructure markets among others that relate to radio frequency.
Unfortunately, the Zacks Semiconductors-Radio Frequency Industry is currently in the bottom 14% of over 250 Zacks industries and investors may want to be cautious of Skyworks' stock at the moment which lands a Zacks Rank #5 (Strong Sell) and the Bear of the Day.
Industry Challenges & Declining Earnings Estimates
Broader economic uncertainties including higher inflation and rising interest rates have had a dismal effect on the companies within the Zacks Semiconductors-Radio Frequency Industry most notably Skyworks and Akoustis Technologies (AKTS).
Declining earnings estimates are indicative of such and suggest more short-term weakness ahead with Skyworks starting to take the brunt of its industry's weakening outlook as a leader in the space. To that point, earnings estimates for Skyworks' current fiscal 2024 have fallen -19% in the last 30 days from $8.95 per share to $7.21 a share. More concerning, FY25 EPS estimates have dropped -16% over the last month from $10.41 per share to $8.70 a share.
Stagnant Price Performance
Making the glaring drop in annual earnings estimates look even more bleak is that Skyworks' price performance and the inflationary recovery of the Semiconductor-Radio Frequency Industry have largely trailed the broader indexes.
While the S&P 500 and Nasdaq have rebounded and soared +19% and +36% this year respectively Skyworks' stock is up a modest +3% with its Zacks Subindustry down -2%. Furthermore, over the last three years, Skyworks stock is still down -32% and its Zacks Subindustry has fallen -44% to largely trail the S&P 500's +27% and the Nasdaq's +19%.
Bottom Line
Given the poor price performance of Skyworks stock over the last few years the large decline in annual earnings estimates in the last month is definitely concerning. It appears that selling or avoiding Skyworks stock may be the right move at the moment as there could be much better opportunities ahead.
Additional content:
3 Airline Stocks in Focus Ahead of Thanksgiving
Soaring fuel and labor costs have been eating into the profits of airlines, but the holiday season is expected to turn things in favor of airline companies. The holiday season is an important window for airlines to boost revenues, and this Thanksgiving holiday period is expected to be one of the busiest ones in recent times.
Hence, investors should utilize this opportunity and invest in airline stocks like American Airlines Group Inc., United Airlines Holdings, Inc. and Delta Air Lines, Inc..
Thanksgiving Travel to Soar
Airlines took a major hit during the peak of the pandemic and the year after that as travel came to a standstill. However, the industry has since recovered from historic lows and is now gearing up for the upcoming holiday season, which is projected to see a record volume of passenger traffic.
A staggering 30 million passengers are expected to be screened between Nov 17 and Nov 28, hitting a record high, the Transportation Security Administration said.
The Sunday following Thanksgiving is projected to be the busiest day within this timeframe, with an estimated 2.9 million passengers expected to travel by air.
Weather played spoilsport last year during this time, compelling several airlines to cancel thousands of flights across the country. However, most airlines this year are ready to handle the situation more efficiently.
According to the Federal Aviation Administration, Thanksgiving flights are expected to peak at 49,606 on the Wednesday preceding the holiday, surpassing last year's record of 48,192.
Expectations of record passenger traffic are high this year, particularly after airlines recorded robust traffic volumes during the Labor Day weekend.
Pent-up demand has soared since the removal of the pandemic-induced restrictions. Although higher fuel and labor costs have been posing major challenges for the airline industry, optimism is high surrounding air travel this year.
This has seen airlines gearing up to accommodate more passengers and adding 253,000 more seats per day during the period. Also, lucrative discounts are being offered to lure flyers.
According to flight-tracking site Hopper, Thanksgiving flight deals are currently averaging $248 for domestic round trips. This reflects a decrease from $271 last year and $276 in 2019, the pre-pandemic time.
According to the latest U.S. inflation report from the Department of Labor, overall airfare has declined more than 13%.
Our Choices
Given this situation, it would be ideal to invest in airline stocks.
American Airlines Group Inc.'s wholly owned subsidiaries are American Airlines, Envoy Aviation Group, PSA Airlines and Piedmont Airlines. AAL's primary business is to provide passenger and cargo services.
American Airlines Group's expected earnings growth rate for the current year is 378%. Shares of AAL have gained 7.3% in the past 30 days. American Airlines Grouppresently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
United Airlines Holdings, Inc. transports people and cargo not only throughout North America but also to destinations in Asia, Europe, the Middle East and Latin America. UAL's hubs are at Newark Liberty International Airport, Chicago O'Hare International Airport, Denver International Airport, George Bush Intercontinental Airport, Los Angeles International Airport, A.B. Won Pat International Airport, San Francisco International Airport and Washington Dulles International Airport.
United Airlines Holdings' expected earnings growth rate for the current year is 286.9%. Shares of UAL have gained 10.4% in the past 30 days. United Airlines Holdings presently has a Zacks Rank #3.
Delta Air Lines, Inc. is one of the four carriers that controls the majority of the U.S. aviation market (the carriers account for more than 60% of the domestic market share).
Delta Air Lines' expected earnings growth rate for the current year is 90.6%. Shares of Dal have gained 10.2% in the past 30 days. Delta Air Lines currently has a Zacks Rank #3.
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.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.