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Monday.com and Blackstone have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – November 30, 2023 – Zacks Equity Research shares Monday.com (MNDY - Free Report) as the Bull of the Day and The Blackstone Group (BX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Skechers (SKX - Free Report) , Hilton Worldwide (HLT - Free Report) and Royal Caribbean Cruises (RCL - Free Report) .
Monday.com is a Zacks Rank #1 (Strong Buy) that develops software applications in the United States, Europe, the Middle East, Africa, and internationally. The company provides an open platform that democratizes the power of software so organizations can easily build software applications and work management tools to fit their every need.
The stock is up 45% on the year, but it has been a roller coaster ride. Higher interest rates combined with a lofty valuation have created a lot of volatility for the name.
After hitting 2023 highs back in July, the stock started to sell off. And when the Israel-Hamas conflict broke out, the stock sold off another 15%.
Despite these headwinds, the company has performed. A recent earnings report brought a fresh round of buying and the stock is trading just below its 2023 highs.
About the Company
Monday.com was incorporated in 2012 and is headquartered in Tel Aviv, Israel. The company employs over 1,600 people and has over 186,000 customers using monday.com.
The company serves organizations, educational or government institutions, and distinct business units of an organization.
The stock has a Zacks Style Score of “A” in Growth and Momentum. However, the company has a Forward PE of 121 and has a score of “F” in Value.
Q3 Earnings Beat and Raised Guidance
On November 13th, MNDY reported a 255% EPS beat and raised its Q4 revenue outlook. Paid enterprise customers were up 57% year over year.
The company now sees FY23 revenues at $723-725M v the expected $704M.
The company has never missed earnings since its IPO back in 2021. Management commented they are seeing continued momentum from their multi-product strategy and robust customer demand.
Investors responded positively to the quarter, taking the stock up by almost 11%.
Analyst Estimates
Since earnings, analysts have been taking the numbers higher and some are even raising price targets.
Looking at the current quarter, estimates are surging 64% higher over the last 30 days. For the next quarter, estimates have gone from $0.18 to $0.29 over that same time frame, or 61%.
Looking at the longer term, estimates are keeping pace, with big percentage moves higher.
For the current year, analysts have taken numbers from $0.91 to $1.48, or 63%. For next year, we see estimates go from $1.07 to $1.71, or 60%.
Since earnings, Citigroup reiterated their Buy rating and $194 target. TD Cowen reiterated their Outperform and $205 target. KeyBanc maintained its Overweight and raised its price target to $185 from $180.
The Technicals
The stock was a hot IPO in 2021, going from its offering price of $155 to $450. But as tech sold off in 2022, the stock was crushed, falling all the way to a low of $73.58.
After the recent earnings report, the stock is over 130% from those lows.
Those looking for an entry can target the 200-day MA at $155. However, that price might not come as a 161.8% Fibonacci extension at $212 is in play already for the bulls.
Bottom Line
When it comes down to valuation, monday.com investors see the company's earnings growth as strong enough to grow into the high PE.
When it comes down to the Israel exposure and risk, there was no disruption to services as the company initiated a hybrid work environment adjusting to the potential risk.
Despite these headwinds, the company produced a monster quarter and the stock is closing in on 2023 highs.
The Blackstone Group is a Zacks Rank #5 (Strong Sell) that is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity, and multi-asset class strategies.
The stock has recently rallied with other financial stocks, but investors might be getting ahead of themselves as the stock approaches 2023 highs.
A Q3 earnings miss that resulted in analysts dropping estimates should be viewed as a caution flag as we head into 2024.
About the Company
Blackstone has become one of the most recognizable names on Wall Street of late. It was founded in 1985 and is headquartered in New York, New York.The company employs over 4,500 people, with additional offices across Asia, Europe, North America, and Central America.
The company operates its businesses through four segments: Private Equity, Real Estate, Hedge Fund Solutions, and Credit & Insurance. As of Sep 30, 2023, total AUM was $1.01 trillion and fee-earning AUM was $734.5 billion.
BX is valued at $77 billion and has a Forward PE of 28. The stock holds Zacks Style Scores of “F” in Momentum and Value. BX pays a dividend of 3%.
Q3 Earnings
The Blackstone Group reported Q3 EPS back in October, posting a 4% surprise to the downside. The quarter was affected by a slow-deal making environment that resulted in lower asset sales.
Management commentary was very cautious in tone, but this was before the recent market rally. While the atmosphere has changed over the last month, estimates are still drifting lower since the earnings report.
Estimates
Over the last 60 days, numbers for the current quarter have been taken down from $1.27 to $1.05, or 17%.
For the current year, analysts have lowered estimates by 7% over that same time frame.
Looking at the longer term, numbers are going lower as well. For next year, estimates have fallen from $5.92 to $5.32, or over 10%.
The stock sold off after earnings but has rallied over 25% since the October low. Market forces have helped financials and BX, but investors should be looking to take profits into this up move.
Technical Take
The stock has traded in a sideways pattern since early 2022. The trading range has seen support around the $75-80 levels and resistance between $110-120. With the stock at $112 as of this writing, investors should be looking to take chips off the table.
Better entries below the current price include the 50-day moving average at $103 and the 200-day currently resides at $95.50
In Summary
While the fundamental environment might be shifting in favor of Blackstone, analysts are not on board yet. Investors should be taking chips off the table and looking for fresh entries at lower prices.
Additional content:
3 Stocks to Gain as Consumer Confidence Rebounds
After three successive months of decline, confidence among Americans ticked up in November, aided mostly by strong labor market conditions. Expectations for future business circumstances improved despite geopolitical issues, sustained inflation and the likelihood of a recession ahead.
This will undoubtedly strengthen consumer outlay, which surely bodes well for consumer discretionary stocks such as Skechers, Hilton Worldwide and Royal Caribbean Cruises.
Americans Feel Much Better About the Economy
The Conference Board stated that its consumer confidence index increased to 102.0 this month from a downwardly revised 99.1 last month. The consumer confidence index advanced more than analysts’ expectations of 100.9.
Confidence among consumers strengthened as they are now feeling much better about future business scenarios, income and job availability.
The expectations index, which measures consumers’ outlook on business and labor market situations, improved to 77.8 in November from October’s reading of 72.7. Now, the reading may be below the 80 mark, indicating a recession shortly, but still, consumers’ economic outlook for the next six months improved.
Even though consumers are preoccupied with the rise in prices, confidence largely among households aged 55 and above increased. After all, they are now much more self-assured about their financial conditions.
Why Does Consumer Confidence Matter?
Confidence among consumers is necessary in evaluating consumer outlays in the upcoming three to six-month period. The more confidence households possess, the more they are likely to open their purses.
From an investment standpoint, when consumers are willing to splurge, companies that sell nonobligatory items and provide hospitality services are likely to profit.
3 Solid Choices
We have, thus, selected three consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). Such stocks also boast a VGM Score of A or B. Here V stands for Value, G for Growth, and M for Momentum, and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skechers designs, develops, markets and distributes footwear for men, women and children. Skechers has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for SKX’s current-year earnings has moved up 1.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 44.5%.
Hilton Worldwide is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. Hilton Worldwide has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for HLT’s current-year earnings has moved up 0.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 24.3%.
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises has a Zacks Rank #1 and a VGM Score of B.
The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 7.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 187.9%.
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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Monday.com and Blackstone have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – November 30, 2023 – Zacks Equity Research shares Monday.com (MNDY - Free Report) as the Bull of the Day and The Blackstone Group (BX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Skechers (SKX - Free Report) , Hilton Worldwide (HLT - Free Report) and Royal Caribbean Cruises (RCL - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Monday.com is a Zacks Rank #1 (Strong Buy) that develops software applications in the United States, Europe, the Middle East, Africa, and internationally. The company provides an open platform that democratizes the power of software so organizations can easily build software applications and work management tools to fit their every need.
The stock is up 45% on the year, but it has been a roller coaster ride. Higher interest rates combined with a lofty valuation have created a lot of volatility for the name.
After hitting 2023 highs back in July, the stock started to sell off. And when the Israel-Hamas conflict broke out, the stock sold off another 15%.
Despite these headwinds, the company has performed. A recent earnings report brought a fresh round of buying and the stock is trading just below its 2023 highs.
About the Company
Monday.com was incorporated in 2012 and is headquartered in Tel Aviv, Israel. The company employs over 1,600 people and has over 186,000 customers using monday.com.
The company serves organizations, educational or government institutions, and distinct business units of an organization.
The stock has a Zacks Style Score of “A” in Growth and Momentum. However, the company has a Forward PE of 121 and has a score of “F” in Value.
Q3 Earnings Beat and Raised Guidance
On November 13th, MNDY reported a 255% EPS beat and raised its Q4 revenue outlook. Paid enterprise customers were up 57% year over year.
The company now sees FY23 revenues at $723-725M v the expected $704M.
The company has never missed earnings since its IPO back in 2021. Management commented they are seeing continued momentum from their multi-product strategy and robust customer demand.
Investors responded positively to the quarter, taking the stock up by almost 11%.
Analyst Estimates
Since earnings, analysts have been taking the numbers higher and some are even raising price targets.
Looking at the current quarter, estimates are surging 64% higher over the last 30 days. For the next quarter, estimates have gone from $0.18 to $0.29 over that same time frame, or 61%.
Looking at the longer term, estimates are keeping pace, with big percentage moves higher.
For the current year, analysts have taken numbers from $0.91 to $1.48, or 63%. For next year, we see estimates go from $1.07 to $1.71, or 60%.
Since earnings, Citigroup reiterated their Buy rating and $194 target. TD Cowen reiterated their Outperform and $205 target. KeyBanc maintained its Overweight and raised its price target to $185 from $180.
The Technicals
The stock was a hot IPO in 2021, going from its offering price of $155 to $450. But as tech sold off in 2022, the stock was crushed, falling all the way to a low of $73.58.
After the recent earnings report, the stock is over 130% from those lows.
Those looking for an entry can target the 200-day MA at $155. However, that price might not come as a 161.8% Fibonacci extension at $212 is in play already for the bulls.
Bottom Line
When it comes down to valuation, monday.com investors see the company's earnings growth as strong enough to grow into the high PE.
When it comes down to the Israel exposure and risk, there was no disruption to services as the company initiated a hybrid work environment adjusting to the potential risk.
Despite these headwinds, the company produced a monster quarter and the stock is closing in on 2023 highs.
Bear of the Day:
The Blackstone Group is a Zacks Rank #5 (Strong Sell) that is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity, and multi-asset class strategies.
The stock has recently rallied with other financial stocks, but investors might be getting ahead of themselves as the stock approaches 2023 highs.
A Q3 earnings miss that resulted in analysts dropping estimates should be viewed as a caution flag as we head into 2024.
About the Company
Blackstone has become one of the most recognizable names on Wall Street of late. It was founded in 1985 and is headquartered in New York, New York.The company employs over 4,500 people, with additional offices across Asia, Europe, North America, and Central America.
The company operates its businesses through four segments: Private Equity, Real Estate, Hedge Fund Solutions, and Credit & Insurance. As of Sep 30, 2023, total AUM was $1.01 trillion and fee-earning AUM was $734.5 billion.
BX is valued at $77 billion and has a Forward PE of 28. The stock holds Zacks Style Scores of “F” in Momentum and Value. BX pays a dividend of 3%.
Q3 Earnings
The Blackstone Group reported Q3 EPS back in October, posting a 4% surprise to the downside. The quarter was affected by a slow-deal making environment that resulted in lower asset sales.
Management commentary was very cautious in tone, but this was before the recent market rally. While the atmosphere has changed over the last month, estimates are still drifting lower since the earnings report.
Estimates
Over the last 60 days, numbers for the current quarter have been taken down from $1.27 to $1.05, or 17%.
For the current year, analysts have lowered estimates by 7% over that same time frame.
Looking at the longer term, numbers are going lower as well. For next year, estimates have fallen from $5.92 to $5.32, or over 10%.
The stock sold off after earnings but has rallied over 25% since the October low. Market forces have helped financials and BX, but investors should be looking to take profits into this up move.
Technical Take
The stock has traded in a sideways pattern since early 2022. The trading range has seen support around the $75-80 levels and resistance between $110-120. With the stock at $112 as of this writing, investors should be looking to take chips off the table.
Better entries below the current price include the 50-day moving average at $103 and the 200-day currently resides at $95.50
In Summary
While the fundamental environment might be shifting in favor of Blackstone, analysts are not on board yet. Investors should be taking chips off the table and looking for fresh entries at lower prices.
Additional content:
3 Stocks to Gain as Consumer Confidence Rebounds
After three successive months of decline, confidence among Americans ticked up in November, aided mostly by strong labor market conditions. Expectations for future business circumstances improved despite geopolitical issues, sustained inflation and the likelihood of a recession ahead.
This will undoubtedly strengthen consumer outlay, which surely bodes well for consumer discretionary stocks such as Skechers, Hilton Worldwide and Royal Caribbean Cruises.
Americans Feel Much Better About the Economy
The Conference Board stated that its consumer confidence index increased to 102.0 this month from a downwardly revised 99.1 last month. The consumer confidence index advanced more than analysts’ expectations of 100.9.
Confidence among consumers strengthened as they are now feeling much better about future business scenarios, income and job availability.
The expectations index, which measures consumers’ outlook on business and labor market situations, improved to 77.8 in November from October’s reading of 72.7. Now, the reading may be below the 80 mark, indicating a recession shortly, but still, consumers’ economic outlook for the next six months improved.
Even though consumers are preoccupied with the rise in prices, confidence largely among households aged 55 and above increased. After all, they are now much more self-assured about their financial conditions.
Why Does Consumer Confidence Matter?
Confidence among consumers is necessary in evaluating consumer outlays in the upcoming three to six-month period. The more confidence households possess, the more they are likely to open their purses.
From an investment standpoint, when consumers are willing to splurge, companies that sell nonobligatory items and provide hospitality services are likely to profit.
3 Solid Choices
We have, thus, selected three consumer discretionary stocks that flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). Such stocks also boast a VGM Score of A or B. Here V stands for Value, G for Growth, and M for Momentum, and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners. You can see the complete list of today’s Zacks #1 Rank stocks here.
Skechers designs, develops, markets and distributes footwear for men, women and children. Skechers has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for SKX’s current-year earnings has moved up 1.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 44.5%.
Hilton Worldwide is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. Hilton Worldwide has a Zacks Rank #2 and a VGM Score of B.
The Zacks Consensus Estimate for HLT’s current-year earnings has moved up 0.5% over the past 60 days. The company’s expected earnings growth rate for the current year is 24.3%.
Royal Caribbean Cruises is a cruise company. Royal Caribbean Cruises has a Zacks Rank #1 and a VGM Score of B.
The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 7.3% over the past 60 days. The company’s expected earnings growth rate for the current year is 187.9%.
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.