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The Progressive and Archer Daniels Midland have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 26, 2024 – Zacks Equity Research shares The Progressive Corp, (PGR - Free Report) as the Bull of the Day and Archer Daniels Midland (ADM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Exxon Mobil Corp. (XOM - Free Report) , Matador Resources Co. (MTDR - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) .
The Progressive Corp, a current Zacks Rank #1 (Strong Buy), is a massive American insurance company. Analysts have taken their expectations higher across the board.
In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 20% of all Zacks industries. Let's take a deeper look at the company.
Progressive
Right off the bat, it's worth noting that Progressive shares have been monster performers in general over the last decade, delivering a remarkable 25% annualized return vs. the S&P 500's 13.1%. Shares got a solid boost following its latest set of quarterly results.
Concerning the above-mentioned quarter, PGR exceeded the Zacks Consensus EPS estimate by 24% and posted a 3% revenue beat, reflecting growth rates of 97% and 23%, respectively. Drilling a bit deeper, Progressive saw total Policies in Force grow 9% from the year-ago period, reflecting continued business momentum.
The company's top line performance has been strong, with revenues enjoying a recent acceleration.
In addition, shares aren't overly stretched regarding valuation given the company's growth, with the current 21.6X forward earnings multiple (F1) comparing favorably to the Zacks industry average of 29.0X. PGR is forecasted to enjoy 45% earnings growth on 15% higher sales in its current year (FY24), with FY25 expectations alluding to an additional 17% bump in earnings paired with a 12% revenue boost.
The stock carries a Style Score of 'A' for Growth and a Style Score of 'D' for Value.
Income-focused investors could also be attracted to PGR shares, currently yielding a respectable 0.4% annually paired with a sustainable payout ratio sitting at 6% of its earnings.
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.
The Progressive Corp. would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Archer Daniels Midland is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. Analysts have lowered their earnings expectations over the last several months, pushing the stock into a Zacks Rank #5 (Strong Sell).
In addition, the company resides in the Zacks Agriculture – Operations industry, which is currently ranked in the bottom 4% of all Zacks industries (242/250). Let's take a closer look at how the agriculture giant currently stacks up.
Archer Daniels Midland
ADM shares have had a rough showing over the last year, losing more than 30% in value and widely underperforming relative to the general market. News of the company suspending its CFO over accounting practices near the end of January caused shares to nosedive, as we can see highlighted below.
It was the biggest one-day drop for the stock (-24%) since all the way back in 1929.
Shares have seen modest buying pressure since, up a slight 2.5%. Nonetheless, the unfavorable coverage has certainly weighed heavily on investors' sentiment and will remain a hurdle for the company to clear.
Bottom Line
Negative earnings estimate revisions from analysts and a recent suspension of its CFO paint a challenging picture for the company's shares in the near term.
Archer Daniels Midland 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:
Keep an Eye on 3 Permian Plays as Energy Stays Strong
The pricing environment of crude oil continues to be favorable, encouraging more exploration and production activities. Upstream players may keep increasing their operations in prolific shale resources, consequently raising the count of drilling rigs. With the uptick in drilling activities, production is expected to increase, benefiting businesses involved in exploration and production.
Oil Price Still High
West Texas Intermediate crude price is trading at more than $75 per barrel, which is favorable for exploration and production activities. In its short-term energy outlook, the U.S. Energy Information Administration ("EIA") projected the average spot price of West Texas Intermediate crude at $77.68 per barrel this year, still a handsome price for upstream operations.
Permian Oil Production to Rise
In March, total oil production from shale resources in the United States will likely increase by 20,000 barrels per day to 9,716 thousand barrels per day (MBbl/D), per EIA. The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.
Of all the resources, Permian will witness the highest increase in daily oil production next month, according to the EIA's drilling productivity report. In the Permian, the EIA projects oil production to rise by 14,000 barrels per day to 6,085 MBbls/D next month.
Permian Explorers in the Spotlight
It is crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices raised the incentive to keep an eye on companies like Exxon Mobil Corp., Matador Resources Co. and Diamondback Energy, Inc., operating in the most prolific basin. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks to Gain
ExxonMobil has solid upstream businesses. In the Permian Basin, ExxonMobil has a solid pipeline of profitable projects. To strengthen its presence in the Permian further, ExxonMobil entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources (PXD). This is because Pioneer Natural is one of the foremost oil producers operating in the Permian Basin. With the deal closure expected in the first half of 2024, Permian production of the integrated energy major will increase significantly.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. In the sub-basin of the broader Permian, the company has a vast inventory of drilling areas that will back the exploration and production company's production volumes.
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/performancefor information about the performance numbers displayed in this press release.
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The Progressive and Archer Daniels Midland have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 26, 2024 – Zacks Equity Research shares The Progressive Corp, (PGR - Free Report) as the Bull of the Day and Archer Daniels Midland (ADM - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Exxon Mobil Corp. (XOM - Free Report) , Matador Resources Co. (MTDR - Free Report) and Diamondback Energy, Inc. (FANG - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
The Progressive Corp, a current Zacks Rank #1 (Strong Buy), is a massive American insurance company. Analysts have taken their expectations higher across the board.
In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 20% of all Zacks industries. Let's take a deeper look at the company.
Progressive
Right off the bat, it's worth noting that Progressive shares have been monster performers in general over the last decade, delivering a remarkable 25% annualized return vs. the S&P 500's 13.1%. Shares got a solid boost following its latest set of quarterly results.
Concerning the above-mentioned quarter, PGR exceeded the Zacks Consensus EPS estimate by 24% and posted a 3% revenue beat, reflecting growth rates of 97% and 23%, respectively. Drilling a bit deeper, Progressive saw total Policies in Force grow 9% from the year-ago period, reflecting continued business momentum.
The company's top line performance has been strong, with revenues enjoying a recent acceleration.
In addition, shares aren't overly stretched regarding valuation given the company's growth, with the current 21.6X forward earnings multiple (F1) comparing favorably to the Zacks industry average of 29.0X. PGR is forecasted to enjoy 45% earnings growth on 15% higher sales in its current year (FY24), with FY25 expectations alluding to an additional 17% bump in earnings paired with a 12% revenue boost.
The stock carries a Style Score of 'A' for Growth and a Style Score of 'D' for Value.
Income-focused investors could also be attracted to PGR shares, currently yielding a respectable 0.4% annually paired with a sustainable payout ratio sitting at 6% of its earnings.
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.
The Progressive Corp. would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Archer Daniels Midland is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products. Analysts have lowered their earnings expectations over the last several months, pushing the stock into a Zacks Rank #5 (Strong Sell).
In addition, the company resides in the Zacks Agriculture – Operations industry, which is currently ranked in the bottom 4% of all Zacks industries (242/250). Let's take a closer look at how the agriculture giant currently stacks up.
Archer Daniels Midland
ADM shares have had a rough showing over the last year, losing more than 30% in value and widely underperforming relative to the general market. News of the company suspending its CFO over accounting practices near the end of January caused shares to nosedive, as we can see highlighted below.
It was the biggest one-day drop for the stock (-24%) since all the way back in 1929.
Shares have seen modest buying pressure since, up a slight 2.5%. Nonetheless, the unfavorable coverage has certainly weighed heavily on investors' sentiment and will remain a hurdle for the company to clear.
Bottom Line
Negative earnings estimate revisions from analysts and a recent suspension of its CFO paint a challenging picture for the company's shares in the near term.
Archer Daniels Midland 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:
Keep an Eye on 3 Permian Plays as Energy Stays Strong
The pricing environment of crude oil continues to be favorable, encouraging more exploration and production activities. Upstream players may keep increasing their operations in prolific shale resources, consequently raising the count of drilling rigs. With the uptick in drilling activities, production is expected to increase, benefiting businesses involved in exploration and production.
Oil Price Still High
West Texas Intermediate crude price is trading at more than $75 per barrel, which is favorable for exploration and production activities. In its short-term energy outlook, the U.S. Energy Information Administration ("EIA") projected the average spot price of West Texas Intermediate crude at $77.68 per barrel this year, still a handsome price for upstream operations.
Permian Oil Production to Rise
In March, total oil production from shale resources in the United States will likely increase by 20,000 barrels per day to 9,716 thousand barrels per day (MBbl/D), per EIA. The shale resources comprise Anadarko, Appalachia, Bakken, Eagle Ford, Haynesville, Niobrara and Permian.
Of all the resources, Permian will witness the highest increase in daily oil production next month, according to the EIA's drilling productivity report. In the Permian, the EIA projects oil production to rise by 14,000 barrels per day to 6,085 MBbls/D next month.
Permian Explorers in the Spotlight
It is crystal clear that a favorable crude pricing scenario is backing higher production volumes. Improving Permian production amid healthy oil prices raised the incentive to keep an eye on companies like Exxon Mobil Corp., Matador Resources Co. and Diamondback Energy, Inc., operating in the most prolific basin. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks to Gain
ExxonMobil has solid upstream businesses. In the Permian Basin, ExxonMobil has a solid pipeline of profitable projects. To strengthen its presence in the Permian further, ExxonMobil entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources (PXD). This is because Pioneer Natural is one of the foremost oil producers operating in the Permian Basin. With the deal closure expected in the first half of 2024, Permian production of the integrated energy major will increase significantly.
Diamondback Energy, a leading pure-play Permian operator, has reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company is likely to continue witnessing increased production volumes. FANG also has an investment-grade balance sheet.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. In the sub-basin of the broader Permian, the company has a vast inventory of drilling areas that will back the exploration and production company's production volumes.
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 >>
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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.