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Meta Platforms and Albemarle have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 8, 2024 – Zacks Equity Research shares Meta Platforms (META - Free Report) as the Bull of the Day and Albemarle Corp. (ALB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on MercadoLibre (MELI - Free Report) , StoneCo (STNE - Free Report) and Amazon (AMZN - Free Report) .
A member of the beloved ‘Magnificent 7,’ Meta Platforms has rewarded shareholders handsomely, up an astounding 30% just in 2024. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with expectations moving considerably higher across the board.
In addition to favorable earnings estimate revisions, the company resides in the Zacks Internet – Software industry, which is currently ranked in the top 38% of all Zacks industries. Aside from the favorable industry standing and positive earnings outlook, let’s take a closer look at how Meta currently stacks up.
Meta Platforms
Since finding a bottom in early October of 2022, Meta shares have been on an absolute tear, adding nearly 420% on the back of robust quarterly results. As shown below, shares have consistently enjoyed post-earnings positivity.
Digging deeper into the quarterly performance, Meta has delivered some sizable beats as of late, exceeding the Zacks Consensus EPS estimate by an average of nearly 20% across its last four releases. Revenue results have also been positive, with the company posting double-digit percentage Y/Y growth in three consecutive releases.
Shares aren’t overly expensive given the company’s forecasted growth, with the current 25.7X forward earnings multiple (F1) beneath five-year highs of 31.5X and comparing favorably to the respective Zacks industry average of 38.1X.
Consensus expectations for its current year suggest 30% earnings growth on 17% higher sales, with FY25 earnings and revenue forecasted to see growth of 15% and 13.6%, respectively. The stock sports a Style Score of ‘A’ for Growth.
Income-focused investors seeking technology exposure could soon be interested – Meta unveiled its first-ever dividend following its latest print, which is payable on March 26th to stockholders of record as of the close of business on February 22nd.
Several other notable highlights coming from its latest set of quarterly results include an additional $50 billion in share buybacks and the company’s operating margin moving well higher to 41% vs. 20% in the same period last year.
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.
Meta Platforms would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Albemarle Corp. is a global leader in providing essential elements for mobility, energy, connectivity, and health. Analysts have taken their earnings expectations lower over the last several months, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
In addition, the company currently resides in the Zacks Chemical – Diversified industry, which is currently ranked in the bottom 10% of all Zacks industries. Let’s take a closer look at a few other aspects of the company.
Albemarle
Shares have had a rough showing over the past year, down more than 50% and widely underperforming relative to the S&P 500. Recent quarterly prints haven’t supported shares much, moving lower post-earnings in back-to-back releases.
Concerning its latest quarterly release, the company fell short of the Zacks Consensus EPS estimate by nearly 26% and posted sales 3.4% below expectations. Falling lithium prices have stunted ALB’s growth.
It’s worth noting that the company is scheduled to reveal its next set of results on February 14th after the market’s close. Analysts have taken revenue expectations lower along with earnings expectations, with the $2.3 billion expected down nearly 7% since last November.
The unfavorable price action has boosted ALB’s yield, with shares now paying out 1.4% annually paired with a sustainable 8% payout ratio. Albemarle has also shown a nice commitment to increasingly rewarding shareholders, currently carrying a 2% five-year annualized dividend growth rate.
Bottom Line
Negative earnings estimate revisions from analysts stemming from falling lithium prices paint a challenging picture for the company’s shares in the near term.
Albemarle 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:
Do Not Fight This Market! 3 Top-Ranked Stocks to Join the Rally
After such a strong finish in 2023 and follow through at the start of 2024, investors are wondering when the correction is coming. While it is natural to expect some sort of pull-back I think investors would be best off not trying to predict, and instead continue buying top-ranked stocks.
Furthermore, there are many powerful investment themes keeping the markets bid, including a robust economy, exciting technological developments, and tremendous government spending deficits. That last item is definitely worth considering when wondering when the economy is going to slow down.
Because of the massive spending behind the most recent infrastructure bill, where more than $1 trillion is going to be spent, many laid off workers are likely to be soaked up by the public sector, and spending to continue.
Based on these influential economic developments, investors should focus on continuing to buy leading stocks with top Zacks ranks, because a major economic slowdown is becoming less and less likely.
Here I will share three stocks with top Zacks ranks, and market beating performance over the last month. I particularly like to look for stocks showing relative strength while the market continues to grind higher.
MercadoLibre
MercadoLibre is the Latin-American version of Amazon, building an e-commerce platform that continues to boom in popularity. MercadoLibre has been one of the most exciting stocks in the last few years and its returns continue to delight investors willing to own shares.
In addition to a Zacks Rank #2 (Buy) rating, reflecting upward trending earnings revisions, the company is forecasting impressive growth in sales and earnings.
This year, sales are expected to climb 36% YoY to $14.3 billion, while EPS are set to expand 134% to $22.30 per share. That growth is projected to continue on to the next year as well, with sales expected to grow 22.3% the following year, and EPS to increase 57.6%.
In addition to the fundamental developments in MercadoLibre, its technical advances are compelling as well. In addition to relative strength against the market, it has been forming a very nice technical trade pattern to measure a breakout trade from.
For investors waiting for a technical signal to enter MELI, a move above $1764 would market a clean breakout from this bullish consolidation.
StoneCo
StoneCo is a Brazilian financial technology company specializing in payment processing solutions. Founded in 2012, StoneCo provides a range of services, including electronic payments, credit card processing, and point-of-sale technology for businesses of varying sizes.
StoneCo has seen earnings estimates steadily trend higher over the last 10 months, giving it a Zacks Rank #1 (Strong Buy) rating. Additionally, the company is entering a period where EPS are expected to expand significantly. Earnings are forecast to grow 167% YoY this year, and 36.1% next year.
Like MercadoLibre, StoneCo stock is forming a convincing technical pattern. STNE stock was hit hard at the end of 2022 and traded sideways at a depressed level for nearly two years.
However, at the end of 2023, the stock initiated a stage one breakout, indicating investors had been buying the depressed stock. Now over the last two months, STNE price action has built out a weekly bull flag, leading me to believe another big breakout is coming.
If STNE stock trades above the $18.50 level, investors could rush in to buy the stock sending it significantly higher.
Amazon.com
Finally, one of the world's leading companies, Amazon just reported an incredibly strong quarter of financials sending the stock much higher.
Following the earnings gap up, Amazon stock is forming a post earnings consolidation, a very high probability trading setup. Above $171 and AMZN should make a run at its all-time high.
Amazon has also been garnering interest from analysts, who have been steadily upgrading earnings estimates. Current quarter earnings have been revised higher by 22% and current quarter earnings by 12.5%.
Earnings at the e-commerce and technology giant are expected to grow by an impressive 28.1% annually over the next 3-5 years, driven by its AWS and new advertising business segments.
Bottom Line
The great thing about investing in stocks is that the best ones offer tremendous asymmetric opportunities. There is no reason to try and predict market selloffs, because so long as you focus on buying top-tier securities, the returns take care of themselves. That is not to say that risk management isn’t key, but good investors are often optimists.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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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Meta Platforms and Albemarle have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 8, 2024 – Zacks Equity Research shares Meta Platforms (META - Free Report) as the Bull of the Day and Albemarle Corp. (ALB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on MercadoLibre (MELI - Free Report) , StoneCo (STNE - Free Report) and Amazon (AMZN - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
A member of the beloved ‘Magnificent 7,’ Meta Platforms has rewarded shareholders handsomely, up an astounding 30% just in 2024. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with expectations moving considerably higher across the board.
In addition to favorable earnings estimate revisions, the company resides in the Zacks Internet – Software industry, which is currently ranked in the top 38% of all Zacks industries. Aside from the favorable industry standing and positive earnings outlook, let’s take a closer look at how Meta currently stacks up.
Meta Platforms
Since finding a bottom in early October of 2022, Meta shares have been on an absolute tear, adding nearly 420% on the back of robust quarterly results. As shown below, shares have consistently enjoyed post-earnings positivity.
Digging deeper into the quarterly performance, Meta has delivered some sizable beats as of late, exceeding the Zacks Consensus EPS estimate by an average of nearly 20% across its last four releases. Revenue results have also been positive, with the company posting double-digit percentage Y/Y growth in three consecutive releases.
Shares aren’t overly expensive given the company’s forecasted growth, with the current 25.7X forward earnings multiple (F1) beneath five-year highs of 31.5X and comparing favorably to the respective Zacks industry average of 38.1X.
Consensus expectations for its current year suggest 30% earnings growth on 17% higher sales, with FY25 earnings and revenue forecasted to see growth of 15% and 13.6%, respectively. The stock sports a Style Score of ‘A’ for Growth.
Income-focused investors seeking technology exposure could soon be interested – Meta unveiled its first-ever dividend following its latest print, which is payable on March 26th to stockholders of record as of the close of business on February 22nd.
Several other notable highlights coming from its latest set of quarterly results include an additional $50 billion in share buybacks and the company’s operating margin moving well higher to 41% vs. 20% in the same period last year.
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.
Meta Platforms would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Albemarle Corp. is a global leader in providing essential elements for mobility, energy, connectivity, and health. Analysts have taken their earnings expectations lower over the last several months, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
In addition, the company currently resides in the Zacks Chemical – Diversified industry, which is currently ranked in the bottom 10% of all Zacks industries. Let’s take a closer look at a few other aspects of the company.
Albemarle
Shares have had a rough showing over the past year, down more than 50% and widely underperforming relative to the S&P 500. Recent quarterly prints haven’t supported shares much, moving lower post-earnings in back-to-back releases.
Concerning its latest quarterly release, the company fell short of the Zacks Consensus EPS estimate by nearly 26% and posted sales 3.4% below expectations. Falling lithium prices have stunted ALB’s growth.
It’s worth noting that the company is scheduled to reveal its next set of results on February 14th after the market’s close. Analysts have taken revenue expectations lower along with earnings expectations, with the $2.3 billion expected down nearly 7% since last November.
The unfavorable price action has boosted ALB’s yield, with shares now paying out 1.4% annually paired with a sustainable 8% payout ratio. Albemarle has also shown a nice commitment to increasingly rewarding shareholders, currently carrying a 2% five-year annualized dividend growth rate.
Bottom Line
Negative earnings estimate revisions from analysts stemming from falling lithium prices paint a challenging picture for the company’s shares in the near term.
Albemarle 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:
Do Not Fight This Market! 3 Top-Ranked Stocks to Join the Rally
After such a strong finish in 2023 and follow through at the start of 2024, investors are wondering when the correction is coming. While it is natural to expect some sort of pull-back I think investors would be best off not trying to predict, and instead continue buying top-ranked stocks.
Furthermore, there are many powerful investment themes keeping the markets bid, including a robust economy, exciting technological developments, and tremendous government spending deficits. That last item is definitely worth considering when wondering when the economy is going to slow down.
Because of the massive spending behind the most recent infrastructure bill, where more than $1 trillion is going to be spent, many laid off workers are likely to be soaked up by the public sector, and spending to continue.
Based on these influential economic developments, investors should focus on continuing to buy leading stocks with top Zacks ranks, because a major economic slowdown is becoming less and less likely.
Here I will share three stocks with top Zacks ranks, and market beating performance over the last month. I particularly like to look for stocks showing relative strength while the market continues to grind higher.
MercadoLibre
MercadoLibre is the Latin-American version of Amazon, building an e-commerce platform that continues to boom in popularity. MercadoLibre has been one of the most exciting stocks in the last few years and its returns continue to delight investors willing to own shares.
In addition to a Zacks Rank #2 (Buy) rating, reflecting upward trending earnings revisions, the company is forecasting impressive growth in sales and earnings.
This year, sales are expected to climb 36% YoY to $14.3 billion, while EPS are set to expand 134% to $22.30 per share. That growth is projected to continue on to the next year as well, with sales expected to grow 22.3% the following year, and EPS to increase 57.6%.
In addition to the fundamental developments in MercadoLibre, its technical advances are compelling as well. In addition to relative strength against the market, it has been forming a very nice technical trade pattern to measure a breakout trade from.
For investors waiting for a technical signal to enter MELI, a move above $1764 would market a clean breakout from this bullish consolidation.
StoneCo
StoneCo is a Brazilian financial technology company specializing in payment processing solutions. Founded in 2012, StoneCo provides a range of services, including electronic payments, credit card processing, and point-of-sale technology for businesses of varying sizes.
StoneCo has seen earnings estimates steadily trend higher over the last 10 months, giving it a Zacks Rank #1 (Strong Buy) rating. Additionally, the company is entering a period where EPS are expected to expand significantly. Earnings are forecast to grow 167% YoY this year, and 36.1% next year.
Like MercadoLibre, StoneCo stock is forming a convincing technical pattern. STNE stock was hit hard at the end of 2022 and traded sideways at a depressed level for nearly two years.
However, at the end of 2023, the stock initiated a stage one breakout, indicating investors had been buying the depressed stock. Now over the last two months, STNE price action has built out a weekly bull flag, leading me to believe another big breakout is coming.
If STNE stock trades above the $18.50 level, investors could rush in to buy the stock sending it significantly higher.
Amazon.com
Finally, one of the world's leading companies, Amazon just reported an incredibly strong quarter of financials sending the stock much higher.
Following the earnings gap up, Amazon stock is forming a post earnings consolidation, a very high probability trading setup. Above $171 and AMZN should make a run at its all-time high.
Amazon has also been garnering interest from analysts, who have been steadily upgrading earnings estimates. Current quarter earnings have been revised higher by 22% and current quarter earnings by 12.5%.
Earnings at the e-commerce and technology giant are expected to grow by an impressive 28.1% annually over the next 3-5 years, driven by its AWS and new advertising business segments.
Bottom Line
The great thing about investing in stocks is that the best ones offer tremendous asymmetric opportunities. There is no reason to try and predict market selloffs, because so long as you focus on buying top-tier securities, the returns take care of themselves. That is not to say that risk management isn’t key, but good investors are often optimists.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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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.