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GameStop and Becton, Dickinson and Company have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – December 12, 2023 – Zacks Equity Research shares GameStop (GME - Free Report) as the Bull of the Day and Becton, Dickinson and Company (BDX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Red Rock Resorts, Inc. (RRR - Free Report) , PlayAGS, Inc. (AGS - Free Report) and PENN Entertainment, Inc. (PENN - Free Report) .
Before everybody goes nuts over here and calls me an overzealous wannabe that must have just watched "Dumb Money" I want to hammer home the fact that this has nothing to do with Roaring Kitty. Really, it's just based on facts and actions taken by analysts on Wall Street that Zacks happens to aggregate. All-in-all, it's a great way to highlight the Zacks Rank by pointing out the action in today's Bull of the Day, GameStop.
GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities.
The stock is currently a Zacks Rank #1 (Strong Buy) in the Retail – Consumer Electronics industry which ranks in the Top 5% of our Zacks Industry Rank. The reason for the strong rank is that two analysts have come out over the last week and increased their earnings estimates for both the current year and next year. The bullish move has catapulted the current year Zacks Consensus Estimate from a 17-cent loss to just a 2-cent loss. That now represents growth of 98% over last year. Next year's number is up from a 20-cent loss to just a 5-cent loss.
A quick look at the Price, Consensus and EPS Surprise Chart on GameStop shows that estimates and the stock's price has been moving in opposite directions. Since the end of 2022, estimates have trended in a singular direction, up. At the same time, the stock has come down from near $30 to the $15 level it sits at today. That sort of divergence between earnings and price will not last forever. Either earnings will come down or the stock's price will come up. For now, this divergence, coupled with four consecutive quarterly earnings beats are reason enough to name GameStop today's Bull of the Day.
Not all stocks are enjoying the run of the small caps or chip stops or whatever your favorite niche of the market is. Some of them are struggling to keep pace with the pack. Others are actively heading lower. Today's Bear of the Day is a stock that has pulled back from recent highs and is trending lower. The more troubling part for long-term investors is that earnings estimates are also coming down.
Today's Bear of the Day is Becton, Dickinson and Company. Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company operates in three segments: BD Medical, BD Life Sciences, and BD Interventional.
Becton, Dickinson and Company is a Zacks Rank #5 (Strong Sell) in the Medical – Dental Supplies industry which ranks in the Bottom 21% of our Zacks Industry Rank. The reason for the unfavorable rank is that a recent earnings report has caused several firms around Wall Street to cut their earnings estimates for the company. Over the last thirty days, eleven analysts have cut their current year number while six have followed suit for next year.
The result has slashed our Zacks Consensus Estimate for the current year and next year. The current year number is off from $13.53 to $12.84 while next year's number is down from $15.03 to $14.19. Those numbers are still both good for year-over-year growth though. Current year EPS growth is estimated to come in at 5.16% with next year at 10.58. That's on revenue growth of 4.25% this year and 5.8% next year.
Additional content:
3 Industry-Beating Casino Stocks to Watch Amid Market Volatility
The casino industry has seen a turnaround in 2023, despite an economic slowdown. Factors such as a well-spread portfolio across different regions, sustained customer engagement efforts and property investments have contributed to the resilience.
The industry has been benefiting from increased visitation and spending per visit, especially from younger demographics. Also, an uptick in hotel reservations and a burgeoning interest in non-gaming features hint at a potential resurgence in growth.
Casino operators are maintaining a disciplined operational approach by refining business processes, optimizing marketing strategies and renegotiating agreements with vendors and third parties. Also, there's a heightened focus on service quality and staffing levels to accommodate gamers better.
Strong Q3 Performance Uplift Spirits
Despite concerns about economic slowdowns and inflation, gross gaming revenues (GGR) remain strong, especially in regional casinos. Factors like growth of online betting and relaxed gambling laws have contributed to the industry's stability.
In third-quarter 2023, the U.S. commercial gaming sector achieved strong revenues and generated $16.17 billion, indicating a 6.1% increase compared to the previous year. This marks the industry's most lucrative third quarter to date, with continuous annual revenue growth for the 11th consecutive quarter.
Revenue growth across land-based casinos, iGaming and sports betting - contributed to the overall gain. Traditional slot machines, table games, and iGaming collectively produced $12.49 billion in revenue, a 1.8% rise year on year. Meanwhile, iGaming, increased by 26% year on year to $1.52 billion.
Sports betting, both in-person and online, soared by 22.8% year-over-year, amounting to $2.15 billion in revenue. Notably, growth was primarily driven by newer operational states like Maryland (online), Massachusetts, Nebraska and Ohio. With Americans wagering $79 billion in the first nine months of 2023 — up 32.7% year over year — the industry is poised for growth.
AGA president and CEO Bill Miller highlighted the industry's role in creating job opportunities and contributing significantly to communities through increased tax revenue. The third quarter saw a surge in direct gaming taxes, contributing an estimated $3.43 billion to state and local governments in gaming states, a 4.7% increase from the previous year's levels.
The Macau gaming industry is also reaping the rewards of increased visitation. In November, there was a 435% year-over-year surge in GGR, reaching MOP$16.04 billion (US$2 billion). For the first 11 months of 2023, GGR is up 324.9% year over year. The government of Macau forecasts yielding collective GGR of MOP216 billion ($26.84 billion) in 2024.
Road Ahead
Considering the favorable reception of online platforms and widespread regulatory acceptance across states, we anticipate continued strong performance in the online gaming industry in the coming periods.
Surveys indicate that more than a third of adults still intend to visit a casino within the next year, resembling patterns observed in previous quarters. In particular industries, gaming supplier CEOs anticipate increased unit sales by the year's end, while numerous operator CEOs aim to bolster their investments in food and beverage services.
The outlook for growth remains optimistic as businesses prepare to leverage the introduction of additional live online casino games. Moreover, the inclusion of a robust program schedule featuring events like F1 and the Super Bowl is expected to contribute positively to these developments further.
Investing in the gaming sector might sound profitable right now. It is worth noting that the Zacks Gaming industry is currently in the top 30% (with the rank of 76) of the 251 Zacks industries, which hints at further growth.
Red Rock Resorts, Inc. stands to gain from strong spending per visit across its portfolio. Attributes such as strong and consistent visitation from guests, increased spending per visit, more time spent on gaming devices and a return of core customers have been adding to the positives. Also, it reported growth in food and beverage and hotel segments fueled by higher average checks and strength in the catering business. It intends to focus on business optimization and cost-reduction measures to drive growth. It also stated its intention to continue its investments in additional amenities, which include the opening of new high-limit slot and table rooms at its Green Valley Ranch properties in late 2023.
Red Rock currently carries a Zacks Rank #3 and has gained 5.4% in the past three months compared with the industry's 2.3% growth. For 2024, the Zacks Consensus Estimate for RRR's financial-year sales and earnings per share (EPS) suggests an increase of 10.5% and 17.9%, respectively, from the year-ago period's levels.
PlayAGS, Inc. is likely to benefit from robust Domestic EGM gaming operations, an expanding premium unit footprint, and strong performance in the Interactive segment. Their focus on premium games such as Bonus Spin Xtreme and PAX S indicates promising prospects. The company aims to venture into untapped markets and create new products for its table business. It maintains a positive outlook on EGM product demand, strategic business development efforts, and ongoing R&D progress. Expectations for the fourth quarter of 2023 involve solid pricing for Spectra 43, with anticipation surrounding the initial sale of Spectra 49 units and the inclusion of non-Spectra family units in the sales pipeline.
PlayAGS currently carries a Zacks Rank #3 and has gained 12% in the past three months. For 2024, the Zacks Consensus Estimate for AGS' financial-year sales and EPS suggests an increase of 3.1% and 386.7%, respectively, from the year-ago period's levels.
PENN Entertainment, Inc. is likely to benefit from omnichannel strength, technological investments and improvement in marketing capabilities. Management emphasizes reimaging its properties with best-in-class retail sports books, new games, refreshed hotel offerings and new third-party restaurant concepts to drive growth. Also, focus on strategic alliances bodes well. The company is optimistic with respect to integrations across ESPN's wide user base and strong media partnerships. In the future, it expects amalgamation to pave the path for new customer acquisition and organic cross-selling opportunities.
PENN Entertainment currently carries a Zacks Rank #3 and has gained 9.6% in the past three months. For 2024, the Zacks Consensus Estimate for PENN's financial-year sales and EPS suggests an increase of 0.6% and 114.1%, respectively, from the year-ago period's levels.
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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GameStop and Becton, Dickinson and Company have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – December 12, 2023 – Zacks Equity Research shares GameStop (GME - Free Report) as the Bull of the Day and Becton, Dickinson and Company (BDX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Red Rock Resorts, Inc. (RRR - Free Report) , PlayAGS, Inc. (AGS - Free Report) and PENN Entertainment, Inc. (PENN - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Before everybody goes nuts over here and calls me an overzealous wannabe that must have just watched "Dumb Money" I want to hammer home the fact that this has nothing to do with Roaring Kitty. Really, it's just based on facts and actions taken by analysts on Wall Street that Zacks happens to aggregate. All-in-all, it's a great way to highlight the Zacks Rank by pointing out the action in today's Bull of the Day, GameStop.
GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities.
The stock is currently a Zacks Rank #1 (Strong Buy) in the Retail – Consumer Electronics industry which ranks in the Top 5% of our Zacks Industry Rank. The reason for the strong rank is that two analysts have come out over the last week and increased their earnings estimates for both the current year and next year. The bullish move has catapulted the current year Zacks Consensus Estimate from a 17-cent loss to just a 2-cent loss. That now represents growth of 98% over last year. Next year's number is up from a 20-cent loss to just a 5-cent loss.
A quick look at the Price, Consensus and EPS Surprise Chart on GameStop shows that estimates and the stock's price has been moving in opposite directions. Since the end of 2022, estimates have trended in a singular direction, up. At the same time, the stock has come down from near $30 to the $15 level it sits at today. That sort of divergence between earnings and price will not last forever. Either earnings will come down or the stock's price will come up. For now, this divergence, coupled with four consecutive quarterly earnings beats are reason enough to name GameStop today's Bull of the Day.
Bear of the Day:
Not all stocks are enjoying the run of the small caps or chip stops or whatever your favorite niche of the market is. Some of them are struggling to keep pace with the pack. Others are actively heading lower. Today's Bear of the Day is a stock that has pulled back from recent highs and is trending lower. The more troubling part for long-term investors is that earnings estimates are also coming down.
Today's Bear of the Day is Becton, Dickinson and Company. Becton, Dickinson and Company develops, manufactures, and sells medical supplies, devices, laboratory equipment, and diagnostic products for healthcare institutions, physicians, life science researchers, clinical laboratories, pharmaceutical industry, and the general public worldwide. The company operates in three segments: BD Medical, BD Life Sciences, and BD Interventional.
Becton, Dickinson and Company is a Zacks Rank #5 (Strong Sell) in the Medical – Dental Supplies industry which ranks in the Bottom 21% of our Zacks Industry Rank. The reason for the unfavorable rank is that a recent earnings report has caused several firms around Wall Street to cut their earnings estimates for the company. Over the last thirty days, eleven analysts have cut their current year number while six have followed suit for next year.
The result has slashed our Zacks Consensus Estimate for the current year and next year. The current year number is off from $13.53 to $12.84 while next year's number is down from $15.03 to $14.19. Those numbers are still both good for year-over-year growth though. Current year EPS growth is estimated to come in at 5.16% with next year at 10.58. That's on revenue growth of 4.25% this year and 5.8% next year.
Additional content:
3 Industry-Beating Casino Stocks to Watch Amid Market Volatility
The casino industry has seen a turnaround in 2023, despite an economic slowdown. Factors such as a well-spread portfolio across different regions, sustained customer engagement efforts and property investments have contributed to the resilience.
The industry has been benefiting from increased visitation and spending per visit, especially from younger demographics. Also, an uptick in hotel reservations and a burgeoning interest in non-gaming features hint at a potential resurgence in growth.
Casino operators are maintaining a disciplined operational approach by refining business processes, optimizing marketing strategies and renegotiating agreements with vendors and third parties. Also, there's a heightened focus on service quality and staffing levels to accommodate gamers better.
Strong Q3 Performance Uplift Spirits
Despite concerns about economic slowdowns and inflation, gross gaming revenues (GGR) remain strong, especially in regional casinos. Factors like growth of online betting and relaxed gambling laws have contributed to the industry's stability.
In third-quarter 2023, the U.S. commercial gaming sector achieved strong revenues and generated $16.17 billion, indicating a 6.1% increase compared to the previous year. This marks the industry's most lucrative third quarter to date, with continuous annual revenue growth for the 11th consecutive quarter.
Revenue growth across land-based casinos, iGaming and sports betting - contributed to the overall gain. Traditional slot machines, table games, and iGaming collectively produced $12.49 billion in revenue, a 1.8% rise year on year. Meanwhile, iGaming, increased by 26% year on year to $1.52 billion.
Sports betting, both in-person and online, soared by 22.8% year-over-year, amounting to $2.15 billion in revenue. Notably, growth was primarily driven by newer operational states like Maryland (online), Massachusetts, Nebraska and Ohio. With Americans wagering $79 billion in the first nine months of 2023 — up 32.7% year over year — the industry is poised for growth.
AGA president and CEO Bill Miller highlighted the industry's role in creating job opportunities and contributing significantly to communities through increased tax revenue. The third quarter saw a surge in direct gaming taxes, contributing an estimated $3.43 billion to state and local governments in gaming states, a 4.7% increase from the previous year's levels.
The Macau gaming industry is also reaping the rewards of increased visitation. In November, there was a 435% year-over-year surge in GGR, reaching MOP$16.04 billion (US$2 billion). For the first 11 months of 2023, GGR is up 324.9% year over year. The government of Macau forecasts yielding collective GGR of MOP216 billion ($26.84 billion) in 2024.
Road Ahead
Considering the favorable reception of online platforms and widespread regulatory acceptance across states, we anticipate continued strong performance in the online gaming industry in the coming periods.
Surveys indicate that more than a third of adults still intend to visit a casino within the next year, resembling patterns observed in previous quarters. In particular industries, gaming supplier CEOs anticipate increased unit sales by the year's end, while numerous operator CEOs aim to bolster their investments in food and beverage services.
The outlook for growth remains optimistic as businesses prepare to leverage the introduction of additional live online casino games. Moreover, the inclusion of a robust program schedule featuring events like F1 and the Super Bowl is expected to contribute positively to these developments further.
Investing in the gaming sector might sound profitable right now. It is worth noting that the Zacks Gaming industry is currently in the top 30% (with the rank of 76) of the 251 Zacks industries, which hints at further growth.
3 Solid Picks
Here, we have highlighted three stocks that have not only performed better than the industry in the past three months but also boast solid prospects. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Red Rock Resorts, Inc. stands to gain from strong spending per visit across its portfolio. Attributes such as strong and consistent visitation from guests, increased spending per visit, more time spent on gaming devices and a return of core customers have been adding to the positives. Also, it reported growth in food and beverage and hotel segments fueled by higher average checks and strength in the catering business. It intends to focus on business optimization and cost-reduction measures to drive growth. It also stated its intention to continue its investments in additional amenities, which include the opening of new high-limit slot and table rooms at its Green Valley Ranch properties in late 2023.
Red Rock currently carries a Zacks Rank #3 and has gained 5.4% in the past three months compared with the industry's 2.3% growth. For 2024, the Zacks Consensus Estimate for RRR's financial-year sales and earnings per share (EPS) suggests an increase of 10.5% and 17.9%, respectively, from the year-ago period's levels.
PlayAGS, Inc. is likely to benefit from robust Domestic EGM gaming operations, an expanding premium unit footprint, and strong performance in the Interactive segment. Their focus on premium games such as Bonus Spin Xtreme and PAX S indicates promising prospects. The company aims to venture into untapped markets and create new products for its table business. It maintains a positive outlook on EGM product demand, strategic business development efforts, and ongoing R&D progress. Expectations for the fourth quarter of 2023 involve solid pricing for Spectra 43, with anticipation surrounding the initial sale of Spectra 49 units and the inclusion of non-Spectra family units in the sales pipeline.
PlayAGS currently carries a Zacks Rank #3 and has gained 12% in the past three months. For 2024, the Zacks Consensus Estimate for AGS' financial-year sales and EPS suggests an increase of 3.1% and 386.7%, respectively, from the year-ago period's levels.
PENN Entertainment, Inc. is likely to benefit from omnichannel strength, technological investments and improvement in marketing capabilities. Management emphasizes reimaging its properties with best-in-class retail sports books, new games, refreshed hotel offerings and new third-party restaurant concepts to drive growth. Also, focus on strategic alliances bodes well. The company is optimistic with respect to integrations across ESPN's wide user base and strong media partnerships. In the future, it expects amalgamation to pave the path for new customer acquisition and organic cross-selling opportunities.
PENN Entertainment currently carries a Zacks Rank #3 and has gained 9.6% in the past three months. For 2024, the Zacks Consensus Estimate for PENN's financial-year sales and EPS suggests an increase of 0.6% and 114.1%, respectively, from the year-ago period's levels.
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.