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Netflix and Vita Coco have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – January 30, 2024 – Zacks Equity Research shares Netflix (NFLX - Free Report) as the Bull of the Day and Vita Coco (COCO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Boeing Company's (BA - Free Report) , CAE Inc. (CAE - Free Report) and Leidos (LDOS - Free Report) .
The headlines this year have been dominated by the "Magnificent Seven." Seven large cap growth stocks that have been rocketing the market higher. Before the Mag 7, we had a different group of leaders pushing the market higher. It was FANG. Among those names is today's Bull of the Day. It's the company that appears to have won the streaming wars.
Today's Bull of the Day is Zacks Rank #1 (Strong Buy) Netflix. Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
The company is coming off an impressive quarter with huge subscriber growth. The company added 13 million subscribers last quarter, far outpacing expectations. This big number has led eleven analysts to increase their earnings estimates for the current year and nine to do so for next year. The bullish move has increased our Zacks Consensus Estimate for the current year from $15.86 to $16.85 while next year's number is up from $18.92 to $20.63.
That means that current year EPS growth is now slated to come in at 40%, with next year coming in at 22.41%. Those are some solid growth numbers considering the stock is trading at 33.85x earnings. Compare that to the broad market's 20.71x earnings. Revenue growth is forecast to come in at 14.27% this year and 11.53% next year.
The Price, Consensus and EPS Surprise Chart highlights the strong move off the early 2022 lows in earnings. Estimates turned around as the stock bottomed out. Shares had dipped down to the high $100s. Since then, it has been a steady slog higher. This latest earnings report, although technically a miss on EPS, has led to a rally which broke the stock out from $500, ticking up to $575 on January 29th.
With the market spiking higher across the board, it can feel like no matter what you do you are guaranteed to make money. That could not be further from the case. Sure, a rally helps, but eventually a company needs to stand on its own two. What that means, is that earnings have to be there. Stocks with the strongest earnings trends have the highest chance of hanging in over the long run. One way to find stocks with the strongest earnings trends is by leaning on the tried-and-true power of the Zacks Rank.
Today's Bear of the Day is a stock that has fallen out of the good graces of our Zacks Rank. That means that this company has seen estimates move in the wrong direction, to the downside. It's Zacks Rank #5 (Strong Sell) Vita Coco.The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, and the Asia Pacific. The company offers coconut oil and coconut milk; juice, hydration mix, and milk; sparkling water; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It also provides private label coconut water and oil to retailers.
The reason for the unfavorable rank is that analysts have cut estimates for the current year and next year recently. Over the last thirty days, analysts have dropped their numbers for both periods. This bearish sentiment has dropped the Zacks Consensus Estimate for the current year from 79 cents to 77 cents and next year's number from 92 cents to 88 cents.
The Boeing Company's Defense, Space & Security segment is likely to have recorded impressive fourth-quarter 2023 revenues, owing to solid sales from space programs as well as higher deliveries of its defense products.
However, higher estimated costs from the VC-25B program are likely to have had an adverse impact on the BDS segment's bottom line. Boeing's fourth-quarter and full-year 2023 results are scheduled to be released on Jan 31.
Click here to know how the company's overall performance might have been in the soon-to-be-reported quarter.
Steady Order Flow to Aid Backlog
With the U.S. administration spending significantly on the nation's defense capabilities for the past few years, Boeing Defense, Space & Security (BDS) unit has been witnessing solid order flow from the Pentagon, NASA and Congress for its varied products. Moreover, the diverse regional threats witnessed across Asia, Europe and the Middle East have also been offering growth opportunities for this unit's products.
Consequently, Boeing has been witnessing a solid global demand for its major combat programs, which translated into an overall order value of $6 billion for the BDS unit in the third quarter. Such solid order values thereby bolster the BDS segment's backlog.
We expect the upcoming results to reflect a similar order count for the unit, thereby once again bolstering its backlog figure.
Will Improved Deliveries Aid Q4 Performance?
Boeing's fourth-quarter defense delivery figures indicate an improvement of 12.5% from the year-ago period's level.
Its defense deliveries totaled 54 in the quarter, up from 48 in the prior-year quarter. Such improved delivery figures are expected to have bolstered the defense segment's revenues in the soon-to-be-reported quarter. Moreover, increased sales from space and proprietary programs are also projected to have boosted the BDS unit's top-line performance.
The Zacks Consensus Estimate for the defense unit's revenues is pegged at $6,267.7 million, indicating an improvement of 1.4% year over year.
Earnings Prospect
Strong order activities in the previous quarters as well as lower charges from development programs, as BA progresses in these programs, are expected to have favorably contributed to BDS' earnings performance.
However, higher estimated costs from the VC-25B program are likely to have had an adverse impact on the BDS segment's bottom line. Moreover, the impact of supply-chain constraints might have hurt its overall fourth-quarter earnings.
Notably, the bottom-line estimate for the company's defense unit is pegged at a loss of $233.2 million, indicating a deterioration from the year-ago quarter's reported earnings of $112 million.
What the Zacks Model Unveils
According to the Zacks model, the combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) — increases the odds of an earnings beat. That is the case here.
Boeing has an Earnings ESP of +12.32% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Other Stocks to Consider
Below are two other defense stocks that also have the right combination of elements to post an earnings beat this time around.
CAE delivered a four-quarter average earnings surprise of 15.97%. The consensus estimate for fiscal third-quarter earnings is pegged at 18 cents per share, while that for sales is pinned at $800.7 million.
Leidos is scheduled to release fourth-quarter results on Feb 13. LDOS has an Earnings ESP of +1.88% and a Zacks Rank #2 at present.
Leidos delivered a four-quarter average earnings surprise of 11.51%. The Zacks Consensus Estimate for LDOS' fourth-quarter earnings is pegged at $1.73 per share, while that for sales is pinned at $3.79 billion.
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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Netflix and Vita Coco have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 30, 2024 – Zacks Equity Research shares Netflix (NFLX - Free Report) as the Bull of the Day and Vita Coco (COCO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Boeing Company's (BA - Free Report) , CAE Inc. (CAE - Free Report) and Leidos (LDOS - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
The headlines this year have been dominated by the "Magnificent Seven." Seven large cap growth stocks that have been rocketing the market higher. Before the Mag 7, we had a different group of leaders pushing the market higher. It was FANG. Among those names is today's Bull of the Day. It's the company that appears to have won the streaming wars.
Today's Bull of the Day is Zacks Rank #1 (Strong Buy) Netflix. Netflix, Inc. provides entertainment services. It offers TV series, documentaries, feature films, and games across various genres and languages. The company also provides members the ability to receive streaming content through a host of internet-connected devices, including TVs, digital video players, TV set-top boxes, and mobile devices.
The company is coming off an impressive quarter with huge subscriber growth. The company added 13 million subscribers last quarter, far outpacing expectations. This big number has led eleven analysts to increase their earnings estimates for the current year and nine to do so for next year. The bullish move has increased our Zacks Consensus Estimate for the current year from $15.86 to $16.85 while next year's number is up from $18.92 to $20.63.
That means that current year EPS growth is now slated to come in at 40%, with next year coming in at 22.41%. Those are some solid growth numbers considering the stock is trading at 33.85x earnings. Compare that to the broad market's 20.71x earnings. Revenue growth is forecast to come in at 14.27% this year and 11.53% next year.
The Price, Consensus and EPS Surprise Chart highlights the strong move off the early 2022 lows in earnings. Estimates turned around as the stock bottomed out. Shares had dipped down to the high $100s. Since then, it has been a steady slog higher. This latest earnings report, although technically a miss on EPS, has led to a rally which broke the stock out from $500, ticking up to $575 on January 29th.
Bear of the Day:
With the market spiking higher across the board, it can feel like no matter what you do you are guaranteed to make money. That could not be further from the case. Sure, a rally helps, but eventually a company needs to stand on its own two. What that means, is that earnings have to be there. Stocks with the strongest earnings trends have the highest chance of hanging in over the long run. One way to find stocks with the strongest earnings trends is by leaning on the tried-and-true power of the Zacks Rank.
Today's Bear of the Day is a stock that has fallen out of the good graces of our Zacks Rank. That means that this company has seen estimates move in the wrong direction, to the downside. It's Zacks Rank #5 (Strong Sell) Vita Coco.The Vita Coco Company, Inc. develops, markets, and distributes coconut water products under the Vita Coco brand name in the United States, Canada, Europe, the Middle East, and the Asia Pacific. The company offers coconut oil and coconut milk; juice, hydration mix, and milk; sparkling water; Runa, a plant-based energy drink; packaged water under the Ever & Ever brand name; and PWR LIFT, a protein-infused fitness drink. It also provides private label coconut water and oil to retailers.
The reason for the unfavorable rank is that analysts have cut estimates for the current year and next year recently. Over the last thirty days, analysts have dropped their numbers for both periods. This bearish sentiment has dropped the Zacks Consensus Estimate for the current year from 79 cents to 77 cents and next year's number from 92 cents to 88 cents.
Additional content:
Will Improved Defense Deliveries Boost Boeing's (BA - Free Report) Q4?
The Boeing Company's Defense, Space & Security segment is likely to have recorded impressive fourth-quarter 2023 revenues, owing to solid sales from space programs as well as higher deliveries of its defense products.
However, higher estimated costs from the VC-25B program are likely to have had an adverse impact on the BDS segment's bottom line.
Boeing's fourth-quarter and full-year 2023 results are scheduled to be released on Jan 31.
Click here to know how the company's overall performance might have been in the soon-to-be-reported quarter.
Steady Order Flow to Aid Backlog
With the U.S. administration spending significantly on the nation's defense capabilities for the past few years, Boeing Defense, Space & Security (BDS) unit has been witnessing solid order flow from the Pentagon, NASA and Congress for its varied products. Moreover, the diverse regional threats witnessed across Asia, Europe and the Middle East have also been offering growth opportunities for this unit's products.
Consequently, Boeing has been witnessing a solid global demand for its major combat programs, which translated into an overall order value of $6 billion for the BDS unit in the third quarter. Such solid order values thereby bolster the BDS segment's backlog.
We expect the upcoming results to reflect a similar order count for the unit, thereby once again bolstering its backlog figure.
Will Improved Deliveries Aid Q4 Performance?
Boeing's fourth-quarter defense delivery figures indicate an improvement of 12.5% from the year-ago period's level.
Its defense deliveries totaled 54 in the quarter, up from 48 in the prior-year quarter. Such improved delivery figures are expected to have bolstered the defense segment's revenues in the soon-to-be-reported quarter. Moreover, increased sales from space and proprietary programs are also projected to have boosted the BDS unit's top-line performance.
The Zacks Consensus Estimate for the defense unit's revenues is pegged at $6,267.7 million, indicating an improvement of 1.4% year over year.
Earnings Prospect
Strong order activities in the previous quarters as well as lower charges from development programs, as BA progresses in these programs, are expected to have favorably contributed to BDS' earnings performance.
However, higher estimated costs from the VC-25B program are likely to have had an adverse impact on the BDS segment's bottom line. Moreover, the impact of supply-chain constraints might have hurt its overall fourth-quarter earnings.
Notably, the bottom-line estimate for the company's defense unit is pegged at a loss of $233.2 million, indicating a deterioration from the year-ago quarter's reported earnings of $112 million.
What the Zacks Model Unveils
According to the Zacks model, the combination of two key ingredients — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) — increases the odds of an earnings beat. That is the case here.
Boeing has an Earnings ESP of +12.32% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Other Stocks to Consider
Below are two other defense stocks that also have the right combination of elements to post an earnings beat this time around.
CAE Inc. is slated to release third-quarter fiscal 2024 results on Feb 14. CAE has an Earnings ESP of +7.18% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
CAE delivered a four-quarter average earnings surprise of 15.97%. The consensus estimate for fiscal third-quarter earnings is pegged at 18 cents per share, while that for sales is pinned at $800.7 million.
Leidos is scheduled to release fourth-quarter results on Feb 13. LDOS has an Earnings ESP of +1.88% and a Zacks Rank #2 at present.
Leidos delivered a four-quarter average earnings surprise of 11.51%. The Zacks Consensus Estimate for LDOS' fourth-quarter earnings is pegged at $1.73 per share, while that for sales is pinned at $3.79 billion.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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.
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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.