We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
QuickLogic and Dorman Products have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – December 18, 2023 – Zacks Equity Research shares QuickLogic (QUIK - Free Report) as the Bull of the Day and Dorman Products (DORM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Macy's, Inc. (M - Free Report) , Abercrombie & Fitch (ANF - Free Report) and American Eagle Outfitters (AEO - Free Report) .
QuickLogic is a Zacks Rank #2 (Buy) that has an F for Value and an A for Growth. This is a semiconductor company that makes and sells ultra low power chips. These are ideal for the smartphone and wearable market. Let’s explore more about this company in this Bull of The Day article.
Description
QuickLogic Corporation is a semiconductor provider of ultra-low power, comprehensive, flexible sensor processing solutions enabling significantly longer battery life for the Smartphone, Wearable, and IoT markets. They are the only company integrating multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. QuickLogic accelerates the pace of innovation for always-on motion, light, environmental, location, and voice-enabled user experiences.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For QuickLogic, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For QUIK estimates are moving higher.
This quarter has QUIK expected to earn $0.14, up from $0.07 cent 30 days ago.
Next quarter is the first quarter of 2024 and there is no estimate.
The full year 2023 has seen estimates move from $0.05 to $0.11 over the last 30 days.
Next fiscal year has seen a move higher from $0.32 to $0.36 over the same period.
Accelerating Growth
This year the company is looking for 30% topline growth and that is great but even better than that is the 2024 is calling for 31% topline growth. Accelerating growth on top is a great signal.
Valuation
I see a forward PE for QUIK at 116x, but that number drops to 38x when you extend it to the end of 2024. The price to book multiple of 12.6x is a little high, but chips names tend to trade at elevated levels. The company is expected to grow at a 30% rate, but the most recent quarter saw sales growth of 92% on a year over year basis and it that keeps up the growth rates will move dramatically higher. Price to sales comes in at 10x.
I see operating margins making some big moves higher. Solid revenue growth and better execution (margins) will lead to higher EPS estimates down the road.
Dorman Products is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Dorman Products, Inc. is a leading supplier of Dealer Exclusive replacement parts to the Automotive, Medium and Heavy Duty Aftermarkets. Dorman products are marketed under the Dorman, OE Solutions, HELP!, AutoGrade, First Stop, Conduct-Tite, TECHoice, Dorman Hybrid Drive Batteries and Dorman HD Solutions brand names.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of DORM, I see three misses of the Zacks Consensus Estimate and one meet. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For DORM I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $5.16 to $4.38 over the last 60 days.
The next year moved from a gain of $6.06 to $5.22 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Macy's, Inc. has been making smart moves to enhance customers’ shopping experience. The company is ramping up digital capabilities to provide seamless omnichannel experiences. It has also been progressing well on its Polaris strategy, which includes boosting digital capabilities and attaining operating efficiency.
Over the past three months, the department store chain’s shares have surged 76.2%, outperforming the industry’s 36.2% growth.
Let’s Delve Deeper
Management is on track to strengthen its omnichannel capabilities with investments in online shopping experiences, data and analytics, technology infrastructure as well as better fulfillment capabilities. Macy’s expanded its omnichannel offerings such as curbside, store pickup and same-day delivery bode well. The launch of Macy’s Marketplace encompassed products in a wider range of categories, such as pets, home, kids, baby and maternity, beauty, health, toys and electronics.
Digital sales are likely to account for one-third of net sales in fiscal 2023. The company is progressing well with reimagining its private brands. Impressively, NDSN concluded the third quarter of fiscal 2023 with 1,500 brands on the platform and grew its gross merchandise value by about 22% on a consecutive quarterly basis.
The company is repositioning its physical store footprint to better serve customers and support omnichannel market sales growth. It is ramping up its small-format store initiative, with openings across Macy's and Bloomie's locations. Presently, it operates 15 small-format locations, including 12 Macy's and three Bloomie's.
These stores, about one-fifth the size of its larger counterparts, are designed to provide customers with a premium shopping experience in high-traffic areas. Shoppers can expect to find a mix of Macy's private brands and popular market brands in these smaller outlets. Moving ahead, it plans to open up to 30 additional small-format Macy's locations through fall 2025, alongside expanding Bloomie's locations.
Additionally, Macy’s collaboration with the Swedish buy now, pay later group Klarna is enabling the company to offer shoppers financial ease and payment flexibility with their online purchases. The company’s tie-up with DoorDash for expedited delivery service is also encouraging. Markedly, the redesigned mobile app, live shopping functionality and addition of payment options such as Apple Pay, Klarna Express Checkout, PayPal and Venmo have been making shopping easier for customers.
Macy's Polaris Strategy to adapt better to the evolving retail ecosystem also bodes well. This includes strengthening customer relationships, expanding assortments, accelerating digital growth, optimizing store portfolio and reducing costs.
Moreover, the company’s expanded Star Rewards Loyalty program has been enhancing customer engagement. This was evident in the third quarter of fiscal 2023. Star Rewards program members made up roughly 72% of the overall Macy's brand-owned-plus-licensed sales on a trailing twelve-month basis.
On a trailing 12-month basis, 41.3 million active customers shopped the Macy’s brand. We note that 4 million active customers shopped the Bloomingdale’s brand on a trailing 12-month basis. Comparable sales at the Bluemercury brand were up 2.5% on an owned basis. About 683,000 active customers shopped the Bluemercury brand on a trailing 12-month basis.
What Else?
In recent developments, this omnichannel retailer received a buyout proposal from real estate investor Arkhouse Management and asset manager Brigade Capital Management, per the media reports. This deal is valued at $5.8 billion, according to the media sources. Sources say that the offer, which was submitted on Dec 1, 2023, values the company’s shares at $21 a share. We note that the offer price reflects a 32.4% premium to M's closing price of $15.86 per share on Nov 30. However, Macy’s has declined to comment.
According to sources, the group offering the proposal holds a huge stake in Macy's via Arkhouse-managed funds and has also discussed with the company, whose board has been mulling the offer.
Nonetheless, this Zacks Rank #3 (Hold) company seems to be a decent investment pick now. A VGM Score of B further adds to the strength.
Key Picks
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch and American Eagle Outfitters.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago reported figure. ANF delivered an earnings surprise of 713% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently has a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 23% in each of the trailing four quarters.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figures.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
QuickLogic and Dorman Products have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – December 18, 2023 – Zacks Equity Research shares QuickLogic (QUIK - Free Report) as the Bull of the Day and Dorman Products (DORM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Macy's, Inc. (M - Free Report) , Abercrombie & Fitch (ANF - Free Report) and American Eagle Outfitters (AEO - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
QuickLogic is a Zacks Rank #2 (Buy) that has an F for Value and an A for Growth. This is a semiconductor company that makes and sells ultra low power chips. These are ideal for the smartphone and wearable market. Let’s explore more about this company in this Bull of The Day article.
Description
QuickLogic Corporation is a semiconductor provider of ultra-low power, comprehensive, flexible sensor processing solutions enabling significantly longer battery life for the Smartphone, Wearable, and IoT markets. They are the only company integrating multi-core processing, programmable logic, sensor fusion and context aware algorithms, and embedded software. QuickLogic accelerates the pace of innovation for always-on motion, light, environmental, location, and voice-enabled user experiences.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For QuickLogic, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For QUIK estimates are moving higher.
This quarter has QUIK expected to earn $0.14, up from $0.07 cent 30 days ago.
Next quarter is the first quarter of 2024 and there is no estimate.
The full year 2023 has seen estimates move from $0.05 to $0.11 over the last 30 days.
Next fiscal year has seen a move higher from $0.32 to $0.36 over the same period.
Accelerating Growth
This year the company is looking for 30% topline growth and that is great but even better than that is the 2024 is calling for 31% topline growth. Accelerating growth on top is a great signal.
Valuation
I see a forward PE for QUIK at 116x, but that number drops to 38x when you extend it to the end of 2024. The price to book multiple of 12.6x is a little high, but chips names tend to trade at elevated levels. The company is expected to grow at a 30% rate, but the most recent quarter saw sales growth of 92% on a year over year basis and it that keeps up the growth rates will move dramatically higher. Price to sales comes in at 10x.
I see operating margins making some big moves higher. Solid revenue growth and better execution (margins) will lead to higher EPS estimates down the road.
Bear of the Day:
Dorman Products is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Dorman Products, Inc. is a leading supplier of Dealer Exclusive replacement parts to the Automotive, Medium and Heavy Duty Aftermarkets. Dorman products are marketed under the Dorman, OE Solutions, HELP!, AutoGrade, First Stop, Conduct-Tite, TECHoice, Dorman Hybrid Drive Batteries and Dorman HD Solutions brand names.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of DORM, I see three misses of the Zacks Consensus Estimate and one meet. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For DORM I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $5.16 to $4.38 over the last 60 days.
The next year moved from a gain of $6.06 to $5.22 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Macy's Robust Omnichannel Moves Appear Encouraging
Macy's, Inc. has been making smart moves to enhance customers’ shopping experience. The company is ramping up digital capabilities to provide seamless omnichannel experiences. It has also been progressing well on its Polaris strategy, which includes boosting digital capabilities and attaining operating efficiency.
Over the past three months, the department store chain’s shares have surged 76.2%, outperforming the industry’s 36.2% growth.
Let’s Delve Deeper
Management is on track to strengthen its omnichannel capabilities with investments in online shopping experiences, data and analytics, technology infrastructure as well as better fulfillment capabilities. Macy’s expanded its omnichannel offerings such as curbside, store pickup and same-day delivery bode well. The launch of Macy’s Marketplace encompassed products in a wider range of categories, such as pets, home, kids, baby and maternity, beauty, health, toys and electronics.
Digital sales are likely to account for one-third of net sales in fiscal 2023. The company is progressing well with reimagining its private brands. Impressively, NDSN concluded the third quarter of fiscal 2023 with 1,500 brands on the platform and grew its gross merchandise value by about 22% on a consecutive quarterly basis.
The company is repositioning its physical store footprint to better serve customers and support omnichannel market sales growth. It is ramping up its small-format store initiative, with openings across Macy's and Bloomie's locations. Presently, it operates 15 small-format locations, including 12 Macy's and three Bloomie's.
These stores, about one-fifth the size of its larger counterparts, are designed to provide customers with a premium shopping experience in high-traffic areas. Shoppers can expect to find a mix of Macy's private brands and popular market brands in these smaller outlets. Moving ahead, it plans to open up to 30 additional small-format Macy's locations through fall 2025, alongside expanding Bloomie's locations.
Additionally, Macy’s collaboration with the Swedish buy now, pay later group Klarna is enabling the company to offer shoppers financial ease and payment flexibility with their online purchases. The company’s tie-up with DoorDash for expedited delivery service is also encouraging. Markedly, the redesigned mobile app, live shopping functionality and addition of payment options such as Apple Pay, Klarna Express Checkout, PayPal and Venmo have been making shopping easier for customers.
Macy's Polaris Strategy to adapt better to the evolving retail ecosystem also bodes well. This includes strengthening customer relationships, expanding assortments, accelerating digital growth, optimizing store portfolio and reducing costs.
Moreover, the company’s expanded Star Rewards Loyalty program has been enhancing customer engagement. This was evident in the third quarter of fiscal 2023. Star Rewards program members made up roughly 72% of the overall Macy's brand-owned-plus-licensed sales on a trailing twelve-month basis.
On a trailing 12-month basis, 41.3 million active customers shopped the Macy’s brand. We note that 4 million active customers shopped the Bloomingdale’s brand on a trailing 12-month basis. Comparable sales at the Bluemercury brand were up 2.5% on an owned basis. About 683,000 active customers shopped the Bluemercury brand on a trailing 12-month basis.
What Else?
In recent developments, this omnichannel retailer received a buyout proposal from real estate investor Arkhouse Management and asset manager Brigade Capital Management, per the media reports. This deal is valued at $5.8 billion, according to the media sources. Sources say that the offer, which was submitted on Dec 1, 2023, values the company’s shares at $21 a share. We note that the offer price reflects a 32.4% premium to M's closing price of $15.86 per share on Nov 30. However, Macy’s has declined to comment.
According to sources, the group offering the proposal holds a huge stake in Macy's via Arkhouse-managed funds and has also discussed with the company, whose board has been mulling the offer.
Nonetheless, this Zacks Rank #3 (Hold) company seems to be a decent investment pick now. A VGM Score of B further adds to the strength.
Key Picks
We have highlighted three better-ranked stocks, namely Abercrombie & Fitch and American Eagle Outfitters.
Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 13.3% from the year-ago reported figure. ANF delivered an earnings surprise of 713% in the last reported quarter.
American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently has a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 23% in each of the trailing four quarters.
The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 4% and 39.2%, respectively, from the year-ago reported figures.
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
800-767-3771 ext. 9339
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.