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Archrock and Diebold Nixdorf have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 9, 2024 – Zacks Equity Research shares Archrock (AROC - Free Report) as the Bull of the Day and Diebold Nixdorf, Inc. (DBD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Disney (DIS - Free Report) .
Archrock is a Zacks Rank #1 (Strong Buy) that has a D for Value and D for Growth. This oil and gas stock that focuses on compression services recently beat earnings and has a great chart. Let's explore more about this company in this Bull of The Day article.
Description
Archrock, Inc. is a provider of natural gas contract compression services as well as supplier of aftermarket services of compression equipment. The company operates in the oil and gas producing regions primarily in the United States. Archrock, Inc., formerly known as Exterran Holdings, Inc., is based in Houston, United States.
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 Archrock, I see two beats and two meets of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 8%.
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 has held still at $0.22.
Next quarter has seen the consensus move from $0.22 to $0.24.
The full fiscal year 2024 estimate has moved from $0.91 to $1.00
Next year has moved from $1.08 to $1.15.
Valuation
The forward PE multiple for AROC is 21.2x which is just above the average market multiple of about 18x. The price to book stands at 3.8x, which means the value oriented will be only slightly interested in this stock as they tend to place more emphasis on that metric. The price to sales multiple comes om at 3.3x. Over the last two quarters, operating margins have increased from 9% to 11%.
When a company is able to produce good topline growth (18.6% in the most recent quarter for AROC) and has expanding margins then it is a pretty safe bet to say that earnings are going to be heading higher.
Diebold Nixdorf, Inc. is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings beat. The company is best known as the maker of ATM's but has diversified into cash recyclers and dispensers, deposit terminals and other kiosk technologies. This article will look at why this stock is a Zacks Rank #5, as it is the Bear of the Day.
Description
Diebold Nixdorf Incorporated engages in the automating, digitizing and transforming the way people bank and shop. Its operating segments include Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools and kiosk technologies, as well as physical security solutions and front-end applications for consumer connection points and back-end platforms. Diebold Nixdorf is based in Hudson, Ohio.
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 Diebold Nixdorf, I see only one quarter with a Zacks Consensus Estimate. That quarter saw the company post $3.02 when the estimate was calling for $1.39 for a beat of $1.63 or 117%. 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 DBD I see annual estimates moving lower of late.
The current year (2024) consensus number moved lower from $4.80 to $3.94 over the last 60 days.
The next year moved from $4.08 to $4.73 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5.
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.
Additional content:
Does The Walt Disney Company Still Have the Magic?
Disney stock is rising from the ashes – and all of us are witnesses.
A reviving theme park business on both a domestic and international level is helping the company regain momentum. Recent attractions such as the Frozen theme land at Hong Kong Disney and Walt Disney Park in Paris, along with the Zootopia theme land at Shanghai Disney, are expected to significantly boost revenue prospects.
Disney has been in the crosshairs the past few years with Florida Governor Ron DeSantis. The company managed to reach a settlement agreement late in March regarding the Central Florida Tourism Oversight District, which runs the special tax district where the Walt Disney World theme park is located.
The settlement paves the way for additional theme-park development in the Sunshine State. Disney plans to invest $17 billion in Florida over the next decade as part of a broader upgrade project to its theme parks.
Disney stock has experienced a flurry of brokerage upgrades and price target hikes this year. Just recently, the company successfully fought off Nelson Peltz's attempt to secure board seats; the triumph in the contested proxy battle was met with a stamp of approval by Disney's board and CEO Bob Iger in their efforts to turn around the company.
Disney Emerges from the Streaming War
The entertainment giant is strengthening its position in a streaming space that is currently dominated by rival Netflix.
Disney's expanding streaming services include the likes of ESPN+, Hulu, Disney+, and Star+. The offerings are expected to be major growth drivers over the long-term.
In particular, Disney+ has developed into a key player, primarily driven by its solid content portfolio. The service offers more than 700 movies and nearly 12,000 episodes of various televisions shows from recognized brands such as Pixar, Marvel, Star Wars, and National Geographic.
Disney is taking steps to prevent users from sharing passwords for its Disney+ streaming service. Taking a page out of Netflix's book, Disney will start cracking down on password sharing in June in several countries, and more broadly beginning in September.
Hulu, which is owned by Disney, began limiting password sharing outside of households last month in an effort to boost subscriber growth. Hulu ended the first quarter with 49.7 million paid subscribers, a gain of 1.2 million from the figure reported in the prior quarter.
The Zacks Rundown
Disney, a Zacks Rank #3 (Hold), is part of the Zacks Media Conglomerates industry, which currently ranks in the top 31% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months. This group has soared more than 20% this year, handily outpacing the general market.
Quantitative research studies suggest about half of a stock's future price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on stocks within the top Zacks Ranked Industries, we can provide a constant tailwind to our investing success.
The company has witnessed its share price climb more than 30% already this year.
Disney has established an impressive history of beating earnings estimates. Most recently, the company delivered fiscal Q1 earnings of $1.22/share, a 25.8% surprise over the $0.97/share consensus estimate.
The figure reflected a 23% increase from the year-ago period. The media conglomerate exceeded the EPS mark in each of the last four quarters, with an average earnings surprise of 14.17%.
Analysts covering DIS are mainly in agreement in terms of earnings estimate revisions; fiscal second-quarter estimates have been raised by 9.18% in the past 60 days. The Q2 Zacks Consensus Estimate now stands at $1.07/share, representing a 15.1% potential improvement from last year.
What the Zacks Model Unveils
The Zacks Earnings ESP (Expected Surprise Prediction) seeks to find companies that have recently seen positive earnings estimate revision activity. The idea is that this recent information can serve as a more accurate predictor of the future, which can give investors a leg up during earnings season.
The technique has proven to be quite useful in finding positive surprises. In fact, when combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks delivered a positive surprise 70% of the time according to our 10-year back test.
DIS is a Zacks Rank #3 (Hold) and boasts a +3.84% Earnings ESP. Another beat may be in the cards when the company reports its fiscal Q2 results in May.
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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Archrock and Diebold Nixdorf have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 9, 2024 – Zacks Equity Research shares Archrock (AROC - Free Report) as the Bull of the Day and Diebold Nixdorf, Inc. (DBD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Disney (DIS - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
Archrock is a Zacks Rank #1 (Strong Buy) that has a D for Value and D for Growth. This oil and gas stock that focuses on compression services recently beat earnings and has a great chart. Let's explore more about this company in this Bull of The Day article.
Description
Archrock, Inc. is a provider of natural gas contract compression services as well as supplier of aftermarket services of compression equipment. The company operates in the oil and gas producing regions primarily in the United States. Archrock, Inc., formerly known as Exterran Holdings, Inc., is based in Houston, United States.
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 Archrock, I see two beats and two meets of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 8%.
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 has held still at $0.22.
Next quarter has seen the consensus move from $0.22 to $0.24.
The full fiscal year 2024 estimate has moved from $0.91 to $1.00
Next year has moved from $1.08 to $1.15.
Valuation
The forward PE multiple for AROC is 21.2x which is just above the average market multiple of about 18x. The price to book stands at 3.8x, which means the value oriented will be only slightly interested in this stock as they tend to place more emphasis on that metric. The price to sales multiple comes om at 3.3x. Over the last two quarters, operating margins have increased from 9% to 11%.
When a company is able to produce good topline growth (18.6% in the most recent quarter for AROC) and has expanding margins then it is a pretty safe bet to say that earnings are going to be heading higher.
Bear of the Day:
Diebold Nixdorf, Inc. is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings beat. The company is best known as the maker of ATM's but has diversified into cash recyclers and dispensers, deposit terminals and other kiosk technologies. This article will look at why this stock is a Zacks Rank #5, as it is the Bear of the Day.
Description
Diebold Nixdorf Incorporated engages in the automating, digitizing and transforming the way people bank and shop. Its operating segments include Banking and Retail. The company offers cash recyclers and dispensers, intelligent deposit terminals, teller automation tools and kiosk technologies, as well as physical security solutions and front-end applications for consumer connection points and back-end platforms. Diebold Nixdorf is based in Hudson, Ohio.
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 Diebold Nixdorf, I see only one quarter with a Zacks Consensus Estimate. That quarter saw the company post $3.02 when the estimate was calling for $1.39 for a beat of $1.63 or 117%. 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 DBD I see annual estimates moving lower of late.
The current year (2024) consensus number moved lower from $4.80 to $3.94 over the last 60 days.
The next year moved from $4.08 to $4.73 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5.
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.
Additional content:
Does The Walt Disney Company Still Have the Magic?
Disney stock is rising from the ashes – and all of us are witnesses.
A reviving theme park business on both a domestic and international level is helping the company regain momentum. Recent attractions such as the Frozen theme land at Hong Kong Disney and Walt Disney Park in Paris, along with the Zootopia theme land at Shanghai Disney, are expected to significantly boost revenue prospects.
Disney has been in the crosshairs the past few years with Florida Governor Ron DeSantis. The company managed to reach a settlement agreement late in March regarding the Central Florida Tourism Oversight District, which runs the special tax district where the Walt Disney World theme park is located.
The settlement paves the way for additional theme-park development in the Sunshine State. Disney plans to invest $17 billion in Florida over the next decade as part of a broader upgrade project to its theme parks.
Disney stock has experienced a flurry of brokerage upgrades and price target hikes this year. Just recently, the company successfully fought off Nelson Peltz's attempt to secure board seats; the triumph in the contested proxy battle was met with a stamp of approval by Disney's board and CEO Bob Iger in their efforts to turn around the company.
Disney Emerges from the Streaming War
The entertainment giant is strengthening its position in a streaming space that is currently dominated by rival Netflix.
Disney's expanding streaming services include the likes of ESPN+, Hulu, Disney+, and Star+. The offerings are expected to be major growth drivers over the long-term.
In particular, Disney+ has developed into a key player, primarily driven by its solid content portfolio. The service offers more than 700 movies and nearly 12,000 episodes of various televisions shows from recognized brands such as Pixar, Marvel, Star Wars, and National Geographic.
Disney is taking steps to prevent users from sharing passwords for its Disney+ streaming service. Taking a page out of Netflix's book, Disney will start cracking down on password sharing in June in several countries, and more broadly beginning in September.
Hulu, which is owned by Disney, began limiting password sharing outside of households last month in an effort to boost subscriber growth. Hulu ended the first quarter with 49.7 million paid subscribers, a gain of 1.2 million from the figure reported in the prior quarter.
The Zacks Rundown
Disney, a Zacks Rank #3 (Hold), is part of the Zacks Media Conglomerates industry, which currently ranks in the top 31% out of approximately 250 industries. Because it is ranked in the top half of all Zacks Ranked Industries, we expect this group to outperform over the next 3 to 6 months. This group has soared more than 20% this year, handily outpacing the general market.
Quantitative research studies suggest about half of a stock's future price appreciation is due to its industry grouping. In fact, the top 50% of Zacks Ranked Industries outperforms the bottom 50% by a factor of more than 2 to 1. By focusing on stocks within the top Zacks Ranked Industries, we can provide a constant tailwind to our investing success.
The company has witnessed its share price climb more than 30% already this year.
Disney has established an impressive history of beating earnings estimates. Most recently, the company delivered fiscal Q1 earnings of $1.22/share, a 25.8% surprise over the $0.97/share consensus estimate.
The figure reflected a 23% increase from the year-ago period. The media conglomerate exceeded the EPS mark in each of the last four quarters, with an average earnings surprise of 14.17%.
Analysts covering DIS are mainly in agreement in terms of earnings estimate revisions; fiscal second-quarter estimates have been raised by 9.18% in the past 60 days. The Q2 Zacks Consensus Estimate now stands at $1.07/share, representing a 15.1% potential improvement from last year.
What the Zacks Model Unveils
The Zacks Earnings ESP (Expected Surprise Prediction) seeks to find companies that have recently seen positive earnings estimate revision activity. The idea is that this recent information can serve as a more accurate predictor of the future, which can give investors a leg up during earnings season.
The technique has proven to be quite useful in finding positive surprises. In fact, when combining a Zacks Rank #3 or better with a positive Earnings ESP, stocks delivered a positive surprise 70% of the time according to our 10-year back test.
DIS is a Zacks Rank #3 (Hold) and boasts a +3.84% Earnings ESP. Another beat may be in the cards when the company reports its fiscal Q2 results in May.
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.