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Phreesia and LCI have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 5, 2024 – Zacks Equity Research shares Phreesia (PHR - Free Report) as the Bull of the Day and LCI Industries (LCII - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Royal Caribbean Cruises Ltd. (RCL - Free Report) and Carnival Corporation & plc (CCL - Free Report) .
Phreesia is a Zacks Rank #1 (Strong Buy) that has a F for Value and B for Growth. This medical information systems company is flying under the radar of most investors as it is a small cap and currently losing money. The thing is, the company recently accelerated its push to profitability. Let’s explore more about this company in this Bull of The Day article.
Description
Phreesia, Inc. engages in the provision of patient check-in solutions for medical practices. The firm offers appointments, clinical support, integration, registration, patient activation, analytics and reports, revenue cycle, patient surveys, and privacy and security products. Its solutions include health systems, multi-specialty, and federally qualified health centers (FQHCs).
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 Phreesia, I see four beats of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 12.2%.
The most recent beat saw an acceleration in the push to profitability. The loss per share was decreasing by two cents in each of the previous quarters, but that changed in the October 2023 quarter. The loss per share was down to $0.58 and that represented a 10 cent improvement.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Following the most recent quarter estimates have trended higher.
The consensus estimate for the current quarter stood at a loss of $0.71 before the report and has since moved to a loss of $0.58.
Next quarter has seen the consensus move from a loss of $0.68 to a loss of $0.50.
The full fiscal year 2024 estimate Has moved from a loss of $2.61 to a loss of $2.32.
Next year has moved from a loss of $2.00 to a loss of $1.43.
These estimate revisions are all headed in the right direction and tell us that the company is pushing towards profitability.
Valuation
No earnings means no PE to lean on so we look at the price to book. The price to book multiple is 5.4x which is a little high for a company not earning money, but also could be double that when they reach profitability. Price to sales comes in at 4.3x and operating margins continue to improve over the last few quarters.
LCI Industries is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower due following a recent earnings miss. The company is in the automotive equipment space and specializes in the components for recreational vehicles and manufactured houses. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
LCI Industries is a supplier of components to the recreational vehicle and manufactured housing industries as well as adjacent industries including bus, cargo and equestrian trailer, marine and heavy truck. The company's product portfolio includes awnings, suspension enhancement, chassis, doors and laminates, electronics, interior, software and apps, windows and glass, thermoformed bath and kitchen products. LCI Industries, formerly known as Drew Industries Incorporated, is based in Elkhart, Indiana.
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 LCI Industries, I see one beat of the Zacks Consensus Estimate and three misses. 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 LCII I see annual estimates moving lower of late.
The current fiscal year (2023) consensus number moved lower from $3.08 to $2.91 over the last 60 days.
The next year moved from a gain of $7.35 to $7.04 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:
2 Top Cruise Stocks Worth a Buy in February
Cruise liners took a severe beating during the outburst of the coronavirus that led to travel curbs. However, things have begun to look hunky-dory for cruise lines post-pandemic as travel restrictions were lifted. The cruise liners took advantage of the pent-up demand and booked profits in recent times.
Consumers have started to open up their wallets for leisure and recreational activities, which led to record bookings for cruise liners. Consumers are confident about their well-being as steady economic growth squashed concerns about an impending recession, while jobs were added to the economy at a steady clip.
The consumer confidence index came in at 114.8 in January from December’s revised reading of 108.0, and it also hit a two-year high, per the Conference Board. A separate measure that shows how confident consumers are about the economy at the moment rose to its strongest level since the onset of the pandemic. At the same time, consumers remain optimistic that the economy is well-poised to improve soon, which no doubt bodes well for discretionary players like cruise liners.
Thus, with the current macroeconomic scenario in favor of cruise liners, investors should certainly place their bets on two top-notch cruise operators, such as Royal Caribbean Cruises Ltd. and Carnival Corporation & plc. Both stocks, as of now, flaunt a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Royal Caribbean’s shares recently soared toward pre-pandemic levels after it posted upbeat fourth-quarter earnings results and projected a positive outlook for the current year. The cruise operator’s net income for the reported quarter came in at $278 million. The reading is in sharp contrast to a loss of $500 million reported in the same period a year ago.
Revenues came in at a healthy $3.33 billion in the fourth quarter, up 28% from year-ago levels, and were mostly led by a considerable increase in passenger tickets. The cruise operator recently witnessed record booking in terms of rate and volume to begin the Wave season. This is when cruise promotions heighten, particularly in the first quarter of a year.
Looking forward, the cruise operator expects its net income to improve as consumers continue to spend on experiences and inflationary pressures cool down. For the first quarter, the company’s management sees adjusted earnings per share to come in at $1.10 to $1.20, which will be in contrast to a loss of 23 cents a share reported last year.
The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 0.6% over the past 60 days. Royal Caribbean’s expected earnings growth rate for the current and next year are a remarkable 188.4% and 38%, respectively. The company’s projected revenue growth rates for the current and next years are 57.7% and 14.1%, respectively.
Similarly, Carnival is seeing record travel bookings across the board for the first half of the year as consumers are splurging on travel with the worst of the pandemic being over. Carnival has predicted an adjusted EBITDA of around $5.6 billion for 2024, which is more than 30% compared to last year.
In the fourth quarter, Carnival posted revenues of $5.4 billion, up 41% from the same period a year ago. Nonetheless, the Zacks Consensus Estimate for CCL’s current-year earnings has moved up 9.9% over the past 60 days. Carnival’s expected earnings growth rate for the current and next quarters are a solid 67.3% and 109.7%, respectively. The company’s estimated revenue growth rates for the current and next years are 13.7% and 4.7%, respectively.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Phreesia and LCI have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 5, 2024 – Zacks Equity Research shares Phreesia (PHR - Free Report) as the Bull of the Day and LCI Industries (LCII - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Royal Caribbean Cruises Ltd. (RCL - Free Report) and Carnival Corporation & plc (CCL - Free Report) .
Here is a synopsis of all four stocks.
Bull of the Day:
Phreesia is a Zacks Rank #1 (Strong Buy) that has a F for Value and B for Growth. This medical information systems company is flying under the radar of most investors as it is a small cap and currently losing money. The thing is, the company recently accelerated its push to profitability. Let’s explore more about this company in this Bull of The Day article.
Description
Phreesia, Inc. engages in the provision of patient check-in solutions for medical practices. The firm offers appointments, clinical support, integration, registration, patient activation, analytics and reports, revenue cycle, patient surveys, and privacy and security products. Its solutions include health systems, multi-specialty, and federally qualified health centers (FQHCs).
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 Phreesia, I see four beats of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 12.2%.
The most recent beat saw an acceleration in the push to profitability. The loss per share was decreasing by two cents in each of the previous quarters, but that changed in the October 2023 quarter. The loss per share was down to $0.58 and that represented a 10 cent improvement.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Following the most recent quarter estimates have trended higher.
The consensus estimate for the current quarter stood at a loss of $0.71 before the report and has since moved to a loss of $0.58.
Next quarter has seen the consensus move from a loss of $0.68 to a loss of $0.50.
The full fiscal year 2024 estimate Has moved from a loss of $2.61 to a loss of $2.32.
Next year has moved from a loss of $2.00 to a loss of $1.43.
These estimate revisions are all headed in the right direction and tell us that the company is pushing towards profitability.
Valuation
No earnings means no PE to lean on so we look at the price to book. The price to book multiple is 5.4x which is a little high for a company not earning money, but also could be double that when they reach profitability. Price to sales comes in at 4.3x and operating margins continue to improve over the last few quarters.
Bear of the Day:
LCI Industries is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower due following a recent earnings miss. The company is in the automotive equipment space and specializes in the components for recreational vehicles and manufactured houses. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
LCI Industries is a supplier of components to the recreational vehicle and manufactured housing industries as well as adjacent industries including bus, cargo and equestrian trailer, marine and heavy truck. The company's product portfolio includes awnings, suspension enhancement, chassis, doors and laminates, electronics, interior, software and apps, windows and glass, thermoformed bath and kitchen products. LCI Industries, formerly known as Drew Industries Incorporated, is based in Elkhart, Indiana.
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 LCI Industries, I see one beat of the Zacks Consensus Estimate and three misses. 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 LCII I see annual estimates moving lower of late.
The current fiscal year (2023) consensus number moved lower from $3.08 to $2.91 over the last 60 days.
The next year moved from a gain of $7.35 to $7.04 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:
2 Top Cruise Stocks Worth a Buy in February
Cruise liners took a severe beating during the outburst of the coronavirus that led to travel curbs. However, things have begun to look hunky-dory for cruise lines post-pandemic as travel restrictions were lifted. The cruise liners took advantage of the pent-up demand and booked profits in recent times.
Consumers have started to open up their wallets for leisure and recreational activities, which led to record bookings for cruise liners. Consumers are confident about their well-being as steady economic growth squashed concerns about an impending recession, while jobs were added to the economy at a steady clip.
The consumer confidence index came in at 114.8 in January from December’s revised reading of 108.0, and it also hit a two-year high, per the Conference Board. A separate measure that shows how confident consumers are about the economy at the moment rose to its strongest level since the onset of the pandemic. At the same time, consumers remain optimistic that the economy is well-poised to improve soon, which no doubt bodes well for discretionary players like cruise liners.
Thus, with the current macroeconomic scenario in favor of cruise liners, investors should certainly place their bets on two top-notch cruise operators, such as Royal Caribbean Cruises Ltd. and Carnival Corporation & plc. Both stocks, as of now, flaunt a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Royal Caribbean’s shares recently soared toward pre-pandemic levels after it posted upbeat fourth-quarter earnings results and projected a positive outlook for the current year. The cruise operator’s net income for the reported quarter came in at $278 million. The reading is in sharp contrast to a loss of $500 million reported in the same period a year ago.
Revenues came in at a healthy $3.33 billion in the fourth quarter, up 28% from year-ago levels, and were mostly led by a considerable increase in passenger tickets. The cruise operator recently witnessed record booking in terms of rate and volume to begin the Wave season. This is when cruise promotions heighten, particularly in the first quarter of a year.
Looking forward, the cruise operator expects its net income to improve as consumers continue to spend on experiences and inflationary pressures cool down. For the first quarter, the company’s management sees adjusted earnings per share to come in at $1.10 to $1.20, which will be in contrast to a loss of 23 cents a share reported last year.
The Zacks Consensus Estimate for RCL’s current-year earnings has moved up 0.6% over the past 60 days. Royal Caribbean’s expected earnings growth rate for the current and next year are a remarkable 188.4% and 38%, respectively. The company’s projected revenue growth rates for the current and next years are 57.7% and 14.1%, respectively.
Similarly, Carnival is seeing record travel bookings across the board for the first half of the year as consumers are splurging on travel with the worst of the pandemic being over. Carnival has predicted an adjusted EBITDA of around $5.6 billion for 2024, which is more than 30% compared to last year.
In the fourth quarter, Carnival posted revenues of $5.4 billion, up 41% from the same period a year ago. Nonetheless, the Zacks Consensus Estimate for CCL’s current-year earnings has moved up 9.9% over the past 60 days. Carnival’s expected earnings growth rate for the current and next quarters are a solid 67.3% and 109.7%, respectively. The company’s estimated revenue growth rates for the current and next years are 13.7% and 4.7%, respectively.
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/performance for information about the performance numbers displayed in this press release.