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EMCOR and Disney have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – December 21, 2023 – Zacks Equity Research shares EMCOR Group, Inc. (EME - Free Report) as the Bull of the Day and The Walt Disney Company (DIS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Goldman Sachs Group, Inc. (GS - Free Report) , General Motors Co. (GM - Free Report) and Apple Inc. (AAPL - Free Report) .
EMCOR Group, Inc. is a leader in mechanical and electrical construction, industrial and energy infrastructure, and building services. The company serves commercial, industrial, utility, and institutional clients.
Analysts have taken a bullish stance on the company’s outlook across the board, pushing it into a favorable Zacks Rank #1 (Strong Buy). As shown below, the revisions trend has been particularly positive for the company’s current quarter, up more than 20% over the last several months.
In addition, the company is part of the Zacks Building Products – Heavy Construction industry, currently ranked in the top 34% of all Zacks industries. Aside from the improved earnings outlook and favorable industry standing, let’s take a closer look at a few other aspects of the company.
EMCOR Group
EMCOR shares have delivered a notably strong performance in 2023, up nearly 50% and outperforming the general market handily on the back of better-than-expected quarterly results. Concerning its latest release, the company posted a 33% beat relative to the Zacks Consensus EPS Estimate and reported sales 2% ahead of expectations, with revenue of $3.2 billion reflecting a quarterly record.
The company’s top line remains in good shape, recovering nicely from pandemic lows in 2020.
The better-than-expected quarterly results were driven by continued strength within its U.S. Construction segments, with sales increasing 16% year-over-year on a combined basis. The company continued to see resilient demand for its services, particularly in semiconductors, data centers, manufacturing re-shoring, healthcare, and across the EV value chain.
EMCOR lifted its current year revenue and EPS guidance following the strong quarter, now expecting full-year revenues of $12.5 billion and EPS in a band of $12.25 - $12.65 per share ($10.75 – $11.25 per share previously).
Investors also stand to reap a passive income from EME shares, presently yielding a modest 0.3% annually paired with a sustainable payout ratio sitting at 6% of its earnings. While the yield may be on the lower end, the company’s 21% five-year annualized dividend growth rate helps pick up the slack.
Shares currently trade at a 17.4X forward 12-month earnings multiple, above the five-year median by a fair margin but well off the 20.1X high earlier in 2023. The stock carries a Style Score of “C” for Value.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
EMCOR Group would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
The Walt Disney Company has assets that span movies, television, publishing, and theme parks. Analysts have taken a bearish stance on the stock, landing it into an unfavorable Zacks Rank #5 (Strong Sell).
Estimates have been taken lower across the board.
In addition, the company resides in the Zacks – Media Conglomerates industry, which is currently ranked in the bottom 29% of all Zacks industries. What’s been going on with the company? Let’s take a closer look at its current standing.
Disney
Disney shares have faced adverse price action for some time now, down more than 50% since making all-time highs in early 2021 as the company tries to regain its ‘blockbuster’ movie status. Following hit-after-hit throughout the last decade, several of Disney’s recent releases have failed to attract viewers, with slowing Disney+ subscriber growth also hampering results.
The company reported 150.2 million Disney+ subscribers throughout its latest quarterly release, down 14 million, or 8%, from the same period last year. Nonetheless, shares bounced nicely following the mentioned release, helping deliver an 8.3% return since the report date and matching the S&P 500’s performance.
The recent favorable price action off the 2023 lows is undoubtedly a good start, but the company’s earnings picture remains under considerable pressure.
Disney’s growth profile remains overall positive, underpinned by its Growth Style Score of “A’. Consensus expectations for its current year indicate 16.4% earnings growth on nearly 4% higher sales, with FY25 consensus estimates currently suggesting an additional 30% of earnings growth on 5% higher revenues.
The company’s shares presently trade at a 1.9X forward 12-month price-to-sales ratio, beneath the 2.9X five-year median and five-year highs of 4.8X.
Bottom Line
Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.
The Walt Disney Company is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Goldman Sachs (GS - Free Report) Eyes Expansion in India
Per a Bloomberg article, The Goldman Sachs Group, Inc. is planning to enhance its credit business in India as the country is one of the fastest-growing economies in the world.
Per International Monetary Fund data, India’s gross domestic product is expected to rise 6.3% for the financial year ending March 2024. Also, earlier this month, India’s union home minister stated that the country would become a $5 trillion economy by the end of 2025.
GS conducts business as a non-banking financial company in India. Per Sonjoy Chatterjee, the chairman and chief executive officer (CEO) for Goldman in India, the bank intends to broaden the range of its loan offerings in the country.
Besides this, Goldman desires to obtain a license to boost its currency trading that would permit it to deal with counterparties like financial investors, equity customers or a corporate customer.
Per Reserve Bank of India (RBI) data, India had seven standalone primary dealers as of Apr 1, 2020. Notably, Goldman Sachs (India) Capital Markets Pvt. Ltd. was part of it. Last year, RBI permitted the standalone primary dealers underwriting primary issuances of government bonds to offer all foreign exchange products to its users.
In regard to this, Chatterjee stated, “We couldn’t trade the currency in India because we are not a bank.” He further added, “So that’s another area we want to scale up.”
Apart from opportunities for credit expansion and currency trading in India, GS believes that the deal-making activity in the country is likely to receive a boost. Particularly, Chatterjee stated that private equity firms are considering deploying a substantial portion of their Asia fund capital in India. Per Chatterjee, “When you have a large Asia fund of $8-$10 billion, India is the most obvious destination.” Hence, the company’s efforts to leverage the growing market is a strategic fit.
Goldman has been eyeing growth opportunities of late. Per an internal memo circulated last week, GS had disclosed changes in its senior executives’ positions as it intends to expand its operations in the private credit space. It further aims to double the size of the business targeting assets worth $110 billion under management over the medium term.
Such growth moves by GS are necessary to support its top-line expansion since the bank has been pulling back from its consumer lending business as it proved to be costlier than expected. Hence, Goldman’s CEO, David Solomon, decided to shift the bank’s focus back to its traditional strengths, which are investment banking and trading.
Accordingly, last month, GS made efforts to offload its General Motors Co. credit card program. The firm informed its employees within the Platform Solutions division, who worked on GM cards, that the process of searching for a new issuer would be initiated by GM.
In late November, Goldman also received a proposal from Apple Inc. to end the credit card partnership in the next 12-15 months. Per a Reuters article, the proposal from AAPL included retreating from the entire consumer partnership with Goldman. This included both credit card and savings account facilities.
Goldman’s shares have gained 11.3% over the past six months compared with the industry’s 10.5% rise.
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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EMCOR and Disney have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – December 21, 2023 – Zacks Equity Research shares EMCOR Group, Inc. (EME - Free Report) as the Bull of the Day and The Walt Disney Company (DIS - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Goldman Sachs Group, Inc. (GS - Free Report) , General Motors Co. (GM - Free Report) and Apple Inc. (AAPL - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
EMCOR Group, Inc. is a leader in mechanical and electrical construction, industrial and energy infrastructure, and building services. The company serves commercial, industrial, utility, and institutional clients.
Analysts have taken a bullish stance on the company’s outlook across the board, pushing it into a favorable Zacks Rank #1 (Strong Buy). As shown below, the revisions trend has been particularly positive for the company’s current quarter, up more than 20% over the last several months.
In addition, the company is part of the Zacks Building Products – Heavy Construction industry, currently ranked in the top 34% of all Zacks industries. Aside from the improved earnings outlook and favorable industry standing, let’s take a closer look at a few other aspects of the company.
EMCOR Group
EMCOR shares have delivered a notably strong performance in 2023, up nearly 50% and outperforming the general market handily on the back of better-than-expected quarterly results. Concerning its latest release, the company posted a 33% beat relative to the Zacks Consensus EPS Estimate and reported sales 2% ahead of expectations, with revenue of $3.2 billion reflecting a quarterly record.
The company’s top line remains in good shape, recovering nicely from pandemic lows in 2020.
The better-than-expected quarterly results were driven by continued strength within its U.S. Construction segments, with sales increasing 16% year-over-year on a combined basis. The company continued to see resilient demand for its services, particularly in semiconductors, data centers, manufacturing re-shoring, healthcare, and across the EV value chain.
EMCOR lifted its current year revenue and EPS guidance following the strong quarter, now expecting full-year revenues of $12.5 billion and EPS in a band of $12.25 - $12.65 per share ($10.75 – $11.25 per share previously).
Investors also stand to reap a passive income from EME shares, presently yielding a modest 0.3% annually paired with a sustainable payout ratio sitting at 6% of its earnings. While the yield may be on the lower end, the company’s 21% five-year annualized dividend growth rate helps pick up the slack.
Shares currently trade at a 17.4X forward 12-month earnings multiple, above the five-year median by a fair margin but well off the 20.1X high earlier in 2023. The stock carries a Style Score of “C” for Value.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
EMCOR Group would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
The Walt Disney Company has assets that span movies, television, publishing, and theme parks. Analysts have taken a bearish stance on the stock, landing it into an unfavorable Zacks Rank #5 (Strong Sell).
Estimates have been taken lower across the board.
In addition, the company resides in the Zacks – Media Conglomerates industry, which is currently ranked in the bottom 29% of all Zacks industries. What’s been going on with the company? Let’s take a closer look at its current standing.
Disney
Disney shares have faced adverse price action for some time now, down more than 50% since making all-time highs in early 2021 as the company tries to regain its ‘blockbuster’ movie status. Following hit-after-hit throughout the last decade, several of Disney’s recent releases have failed to attract viewers, with slowing Disney+ subscriber growth also hampering results.
The company reported 150.2 million Disney+ subscribers throughout its latest quarterly release, down 14 million, or 8%, from the same period last year. Nonetheless, shares bounced nicely following the mentioned release, helping deliver an 8.3% return since the report date and matching the S&P 500’s performance.
The recent favorable price action off the 2023 lows is undoubtedly a good start, but the company’s earnings picture remains under considerable pressure.
Disney’s growth profile remains overall positive, underpinned by its Growth Style Score of “A’. Consensus expectations for its current year indicate 16.4% earnings growth on nearly 4% higher sales, with FY25 consensus estimates currently suggesting an additional 30% of earnings growth on 5% higher revenues.
The company’s shares presently trade at a 1.9X forward 12-month price-to-sales ratio, beneath the 2.9X five-year median and five-year highs of 4.8X.
Bottom Line
Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.
The Walt Disney Company is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
Goldman Sachs (GS - Free Report) Eyes Expansion in India
Per a Bloomberg article, The Goldman Sachs Group, Inc. is planning to enhance its credit business in India as the country is one of the fastest-growing economies in the world.
Per International Monetary Fund data, India’s gross domestic product is expected to rise 6.3% for the financial year ending March 2024. Also, earlier this month, India’s union home minister stated that the country would become a $5 trillion economy by the end of 2025.
GS conducts business as a non-banking financial company in India. Per Sonjoy Chatterjee, the chairman and chief executive officer (CEO) for Goldman in India, the bank intends to broaden the range of its loan offerings in the country.
Besides this, Goldman desires to obtain a license to boost its currency trading that would permit it to deal with counterparties like financial investors, equity customers or a corporate customer.
Per Reserve Bank of India (RBI) data, India had seven standalone primary dealers as of Apr 1, 2020. Notably, Goldman Sachs (India) Capital Markets Pvt. Ltd. was part of it. Last year, RBI permitted the standalone primary dealers underwriting primary issuances of government bonds to offer all foreign exchange products to its users.
In regard to this, Chatterjee stated, “We couldn’t trade the currency in India because we are not a bank.” He further added, “So that’s another area we want to scale up.”
Apart from opportunities for credit expansion and currency trading in India, GS believes that the deal-making activity in the country is likely to receive a boost. Particularly, Chatterjee stated that private equity firms are considering deploying a substantial portion of their Asia fund capital in India. Per Chatterjee, “When you have a large Asia fund of $8-$10 billion, India is the most obvious destination.” Hence, the company’s efforts to leverage the growing market is a strategic fit.
Goldman has been eyeing growth opportunities of late. Per an internal memo circulated last week, GS had disclosed changes in its senior executives’ positions as it intends to expand its operations in the private credit space. It further aims to double the size of the business targeting assets worth $110 billion under management over the medium term.
Such growth moves by GS are necessary to support its top-line expansion since the bank has been pulling back from its consumer lending business as it proved to be costlier than expected. Hence, Goldman’s CEO, David Solomon, decided to shift the bank’s focus back to its traditional strengths, which are investment banking and trading.
Accordingly, last month, GS made efforts to offload its General Motors Co. credit card program. The firm informed its employees within the Platform Solutions division, who worked on GM cards, that the process of searching for a new issuer would be initiated by GM.
In late November, Goldman also received a proposal from Apple Inc. to end the credit card partnership in the next 12-15 months. Per a Reuters article, the proposal from AAPL included retreating from the entire consumer partnership with Goldman. This included both credit card and savings account facilities.
Goldman’s shares have gained 11.3% over the past six months compared with the industry’s 10.5% rise.
GS presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.