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Diageo, Match Group, Amazon's and Whole Foods as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL – August 28, 2017 – Zacks Equity Research highlights Diageo (NYSE:(DEO - Free Report) Free Report)as the Bull of the Day Match Group (OTCMKTS:(MTCH - Free Report) Free Report)as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amazon’s (NASDAQ:AMZN Free Report) and Whole Foods (NASDAQ:WFM Free Report).

Here is a synopsis of all five stocks:

Bull of the Day:

There’s never a dull moment in the stock market. If you were getting used to sideways action, the events of the last couple of weeks have shown that you shouldn’t be complacent. We’ve had two spikes in volatility to go along with major market averages coming down to test 50-day and 200-day moving averages. The good news is, this is creating new trends in the market you can take advantage of.

One time-tested strategy is looking for stocks with positive earnings estimate revisions. Let’s face it, no matter how much you follow a stock, you’re not going to have as much information at your disposal as an analyst whose entire day is dedicated to following that stock and stocks within the same industry. As these analysts increase their earnings estimates, it could be a hint that good things are happening.

Today’s Bull of the Day, Diageo (NYSE:(DEO - Free Report) Free Report) has seen a string of bullish estimate revisions lately. Diageo plc, together with its subsidiaries, produces, markets, and sells alcoholic beverages worldwide. The company offers a collection of brands across spirits, beer, cider, and wine categories. Its brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray, and Guinness. 

Bullish estimate revisions are the reason it’s currently a Zacks Rank #1 (Strong Buy). Over the last thirty days, an analyst has come out and increased their estimate for the current year and next year. The current year number was revised up to $6.14 from $5.95 while next year’s number has gone from $6.41 to $6.71.

Bear:

When you’re looking for ideas to invest in, it’s important to check out the earnings history of the stock you’re investigating. Not only what the growth has been in earnings but how has the sentiment of analysts changed over time? Historically, do analysts have high hopes then dial back their expectations? Revising EPS estimates to the downside isn’t nearly as attractive as the opposite. If analysts have to keep dropping their expectations, eventually investors will be taking back their investment dollars.

Today’s Bear of the Day is Match Group (OTCMKTS:(MTCH - Free Report) Free Report).Match Group, Inc. provides dating products. The company operates in two segments, Dating and Non-dating. It operates a portfolio of approximately 45 brands, including Match, Tinder, PlentyOfFish, Meetic, OkCupid, Pairs, Twoo, OurTime, BlackPeopleMeet, and LoveScout24. The company offers its dating products through its Websites and applications in 42 languages approximately in 190 countries.

Match Group is currently a Zacks Rank #5 (Strong Sell) because of several earnings estimate revisions to the downside. Over the last thirty days, five analysts have dropped their estimates for the current year while seven have done so for next year’s number. This is setting up Match Group for a 0.9% contraction in EPS this year. That in vacuum doesn’t seem like such a drastic number but when you look at the revision history then it paints a different story. A year ago, analysts were expecting 76 cents EPS this year, now they are looking for just 63 cents. Next year’s number started off at $1.17 last year and has dwindled down to 79 cents.

Additional content:

What Changes Will Amazon Make at Whole Foods?

Now that Amazon’s (NASDAQ:AMZNFree Report) purchase of Whole Foods (NASDAQ:WFMFree Report) is official, what changes can the organic grocers' customers expect, and how might Amazon users benefit from the merger?

On Wednesday, the Federal Trade Commission approved Amazon’s $13.7 billion acquisition of Whole Foods, which was first announced in mid-June. And the news caused grocery store stocks to plummet on Thursday.

But, aside from helping send shivers down grocery store investors’ spines, and adding roughly 470 organic grocery stores to its ever-growing list of diversified assets, what will Amazon really change about Whole Foods? 

Changes

The Texas-based chain’s natural and organic foods often come with hefty price tags. So one of Amazon’s first steps, which will begin as soon as Monday, is to lower Whole Foods’ prices.

“Everybody should be able to eat Whole Foods Market quality – we will lower prices without compromising Whole Foods Market’s long-held commitment to the highest standards,” CEO of Amazon Worldwide Consumer Jeff Wilke said in a statement.

On top of that, Jeff Bezos’ company will incorporate Amazon Prime into Whole Foods’ point-of-sale system. Prime members will then eventually earn unique in-store benefits and savings opportunities.

The company will also make Amazon Prime the grocery store’s customer rewards program. “The two companies will invent in additional areas over time, including in merchandising and logistics,” according to the statement.

Here are some other highlights from the official Amazon, Whole Foods announcement—minus the extensive list of soon-to-be lower priced food items:

  •  In the future, after certain technical integration work is complete, Amazon Prime will become Whole Foods Market’s customer rewards program, providing Prime members with special savings and other in-store benefits.

  • Whole Foods Market’s healthy and high-quality private label products—including 365 Everyday Value, Whole Foods Market, Whole Paws and Whole Catch—will be available through Amazon.com, AmazonFresh, Prime Pantry and Prime Now.

  • Amazon Lockers will be available in select Whole Foods Market stores. Customers can have products shipped from Amazon.com to their local Whole Foods Market store for pick up or send returns back to Amazon during a trip to the store.

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About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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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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