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BP and Sonic have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – April 20, 2026 – Zacks Equity Research shares BP (BP - Free Report) as the Bull of the Day and Sonic Automotive (SAH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Berkshire Hathaway (BRK.B - Free Report) , MetLife (MET - Free Report) and Aflac Inc. (AFL - Free Report) .
All-time highs will make you feel like a genius. Every stock looks like a winner. But here’s the reality of the situation, when the market eventually gets picky again, it’s not going to reward hype. It’s going to reward earnings strength. That’s why we lean on the Zacks Rank to cut through the noise and find stocks with real momentum under the hood. Today’s Bull of the Day has all of the momentum in an energy market that has changed forever since the start of the US-Iran conflict.
Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) BP. BP sits in the Energy sector, and while it might not have the flashy appeal of AI stocks, this is exactly the kind of name that works when markets rotate. Energy has quietly been one of the most resilient areas, especially with oil prices holding firm amid ongoing geopolitical uncertainty.
What’s driving the bullish case here? You guessed it, earnings estimate revisions. Analysts have been steadily raising their expectations for BP over the last couple of months. That kind of upward revision activity is the backbone of a Zacks Rank #1 (Strong Buy). It tells you that Wall Street is becoming more confident in the company’s ability to generate profits in the current environment.
Over the last sixty days, no fewer than eight analysts have increased their earnings estimates for the current year. Seven have done so for next year as well. It’s pushed up our Zacks Consensus Estimates for the current year from $2.66 to $4.59 while next year’s number is up from $3.15 to $3.88.
BP is benefiting from a combination of stable crude prices, disciplined capital spending, and strong cash flow generation. The company has also leaned heavily into shareholder returns, with consistent dividends and buybacks making it attractive for income-focused investors.
But this isn’t just an old-school oil story anymore. BP has been investing aggressively in energy transition initiatives, including renewables and low-carbon technologies. Now, let’s be clear, this is still an oil company at its core. But that diversification gives it a longer runway than some of its peers who are more tied strictly to fossil fuels.
The market has been on a tear lately, and when that happens, it’s easy to forget that not every stock deserves to ride the wave higher. Eventually, reality sets in, and when it does, stocks with weakening earnings trends tend to get exposed first. We help uncover these types of stocks with our Zacks Rank. Stocks that are not in the good graces of our Zacks Rank have the weakest earnings trends.
That brings us to today’s Bear of the Day, Zacks Rank #5 (Strong Sell) Sonic Automotive. Sonic Automotive operates as a major automotive retailer in the U.S., selling both new and used vehicles while also generating revenue from financing, insurance, and service operations. On the surface, it sounds like a solid, diversified business. But dig a little deeper, and the cracks start to show.
The biggest issue here is earnings estimate revisions, and not the kind you want to see. Over the last couple of months, analysts have been trimming their expectations for both the current year and next year. That downward pressure on estimates is exactly what drives weaker Zacks Ranks and signals deteriorating sentiment on Wall Street.
Three analysts have dropped their numbers for the current year while two have done so for next year. The bearish moves have slashed our Zacks Consensus Estimate for the current year from $7.05 to $6.54 while next year’s number is down from $7.84 to $7.21.
Why the pessimism? It comes down to the broader environment for auto retailers. Higher interest rates are still biting, making auto loans more expensive and reducing affordability for consumers. That directly impacts vehicle demand, especially on the new car side. At the same time, used car prices have been normalizing, which compresses margins for dealers who were previously benefiting from elevated pricing.
And let’s not ignore the margin story. During the pandemic-era boom, dealerships enjoyed record margins thanks to tight inventory and surging demand. Those days are over. Now we’re seeing margin compression across the industry, and Sonic isn’t immune.
The Automotive – Retail and Whole Sales industry ranks in the Bottom 7% of our Zacks Industry Rank. There are no Zacks Rank #1 (Strong Buy) nor Zacks Rank #2 (Buy) stocks in the industry right now.
Additional content:
Berkshire Taps Yen Bonds: Does This Signal Confidence in Japan?
Berkshire Hathaway has sold ¥272.3 billion or $1.7 billion worth of yen-denominated bonds per a media report, reflecting a well-structured financing strategy. The 10-year notes offering comprised six tranches, with maturities ranging from three to 30 years, as per the report.
By tapping the Japanese debt market, the company is effectively managing currency risk while taking advantage of the country’s low borrowing costs. This approach enables Berkshire to secure funding at more attractive rates than in the United States and deploy the capital into higher-yielding investment opportunities.
The move likely signals confidence in Japanese assets, building on Berkshire’s existing investments in major Japanese trading houses. Berkshire has been steadily increasing its stakes in Japan’s five companies — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — since initiating investment in July 2019. By the end of 2025, Berkshire’s aggregate investment cost was $15.4 billion, while the market value of its stakes had grown to $35.4 billion.
Per the 2025 annual report of Berkshire Hathaway, the company has borrowed an amount roughly equivalent to the yen invested (cost basis) in Japan, at an average cost of 1.2%, with a weighted-average life of approximately 5.75 years.
Borrowing in yen creates a natural hedge when invested in yen assets, reducing currency risk by aligning assets and liabilities—consistent with Berkshire’s conservative approach. It also signals potential for greater exposure to Japan, where valuations remain attractive and governance is improving. The move further reflects Berkshire’s strong credit quality, allowing access to global funding at favorable rates.
What About Other Insurers?
MetLife, a major U.S. insurer, has built a strong, long-term presence in Japan. MetLife’s most transformative move was acquiring Alico in 2010. It positioned MetLife as a leading force in Japan’s life insurance sector and reinforced its strategic growth ambitions in Asia.
Aflac Inc. established Aflac Ventures Japan in 2019 to invest in cancer care, HealthTech, and InsurTech startups, fostering innovation for Aflac Life Insurance Japan. In 2018, Aflac converted its Japanese branch into a subsidiary. Today, Japan remains a vital revenue driver, underscoring Aflac’s strategic commitment.
BRK.B’s Price Performance
Shares of BRK.B have lost 4.9% year to date, underperforming the industry.
BRK.B’s Expensive Valuation
BRK.B trades at a price-to-book value ratio of 1.42, above the industry average of 1.40. It carries a Value Score of D.
Estimate Movement for BRK.B
The Zacks Consensus Estimate for BRK.B’s first-quarter 2026 EPS has witnessed no movement over the last 30 days, while that for the second quarter moved 6.1% south in the same time frame. The consensus estimate for full-year 2026 has moved 2 cents north, while that for 2027 has moved 4 cents south over the last 30 days.
The consensus estimates for BRK.B’s 2026 and 2027 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2025 EPS indicates a decline, the same for 2026 suggests an increase.
BRK.B stock currently carries a Zacks Rank #5 (Strong Sell).
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
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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.
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BP and Sonic have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – April 20, 2026 – Zacks Equity Research shares BP (BP - Free Report) as the Bull of the Day and Sonic Automotive (SAH - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on —Berkshire Hathaway (BRK.B - Free Report) , MetLife (MET - Free Report) and Aflac Inc. (AFL - Free Report) .
Here is a synopsis of all three stocks:
Bull of the Day:
All-time highs will make you feel like a genius. Every stock looks like a winner. But here’s the reality of the situation, when the market eventually gets picky again, it’s not going to reward hype. It’s going to reward earnings strength. That’s why we lean on the Zacks Rank to cut through the noise and find stocks with real momentum under the hood. Today’s Bull of the Day has all of the momentum in an energy market that has changed forever since the start of the US-Iran conflict.
Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) BP. BP sits in the Energy sector, and while it might not have the flashy appeal of AI stocks, this is exactly the kind of name that works when markets rotate. Energy has quietly been one of the most resilient areas, especially with oil prices holding firm amid ongoing geopolitical uncertainty.
What’s driving the bullish case here? You guessed it, earnings estimate revisions. Analysts have been steadily raising their expectations for BP over the last couple of months. That kind of upward revision activity is the backbone of a Zacks Rank #1 (Strong Buy). It tells you that Wall Street is becoming more confident in the company’s ability to generate profits in the current environment.
Over the last sixty days, no fewer than eight analysts have increased their earnings estimates for the current year. Seven have done so for next year as well. It’s pushed up our Zacks Consensus Estimates for the current year from $2.66 to $4.59 while next year’s number is up from $3.15 to $3.88.
BP is benefiting from a combination of stable crude prices, disciplined capital spending, and strong cash flow generation. The company has also leaned heavily into shareholder returns, with consistent dividends and buybacks making it attractive for income-focused investors.
But this isn’t just an old-school oil story anymore. BP has been investing aggressively in energy transition initiatives, including renewables and low-carbon technologies. Now, let’s be clear, this is still an oil company at its core. But that diversification gives it a longer runway than some of its peers who are more tied strictly to fossil fuels.
Bear of the Day:
The market has been on a tear lately, and when that happens, it’s easy to forget that not every stock deserves to ride the wave higher. Eventually, reality sets in, and when it does, stocks with weakening earnings trends tend to get exposed first. We help uncover these types of stocks with our Zacks Rank. Stocks that are not in the good graces of our Zacks Rank have the weakest earnings trends.
That brings us to today’s Bear of the Day, Zacks Rank #5 (Strong Sell) Sonic Automotive. Sonic Automotive operates as a major automotive retailer in the U.S., selling both new and used vehicles while also generating revenue from financing, insurance, and service operations. On the surface, it sounds like a solid, diversified business. But dig a little deeper, and the cracks start to show.
The biggest issue here is earnings estimate revisions, and not the kind you want to see. Over the last couple of months, analysts have been trimming their expectations for both the current year and next year. That downward pressure on estimates is exactly what drives weaker Zacks Ranks and signals deteriorating sentiment on Wall Street.
Three analysts have dropped their numbers for the current year while two have done so for next year. The bearish moves have slashed our Zacks Consensus Estimate for the current year from $7.05 to $6.54 while next year’s number is down from $7.84 to $7.21.
Why the pessimism? It comes down to the broader environment for auto retailers. Higher interest rates are still biting, making auto loans more expensive and reducing affordability for consumers. That directly impacts vehicle demand, especially on the new car side. At the same time, used car prices have been normalizing, which compresses margins for dealers who were previously benefiting from elevated pricing.
And let’s not ignore the margin story. During the pandemic-era boom, dealerships enjoyed record margins thanks to tight inventory and surging demand. Those days are over. Now we’re seeing margin compression across the industry, and Sonic isn’t immune.
The Automotive – Retail and Whole Sales industry ranks in the Bottom 7% of our Zacks Industry Rank. There are no Zacks Rank #1 (Strong Buy) nor Zacks Rank #2 (Buy) stocks in the industry right now.
Additional content:
Berkshire Taps Yen Bonds: Does This Signal Confidence in Japan?
Berkshire Hathaway has sold ¥272.3 billion or $1.7 billion worth of yen-denominated bonds per a media report, reflecting a well-structured financing strategy. The 10-year notes offering comprised six tranches, with maturities ranging from three to 30 years, as per the report.
By tapping the Japanese debt market, the company is effectively managing currency risk while taking advantage of the country’s low borrowing costs. This approach enables Berkshire to secure funding at more attractive rates than in the United States and deploy the capital into higher-yielding investment opportunities.
The move likely signals confidence in Japanese assets, building on Berkshire’s existing investments in major Japanese trading houses. Berkshire has been steadily increasing its stakes in Japan’s five companies — Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo — since initiating investment in July 2019. By the end of 2025, Berkshire’s aggregate investment cost was $15.4 billion, while the market value of its stakes had grown to $35.4 billion.
Per the 2025 annual report of Berkshire Hathaway, the company has borrowed an amount roughly equivalent to the yen invested (cost basis) in Japan, at an average cost of 1.2%, with a weighted-average life of approximately 5.75 years.
Borrowing in yen creates a natural hedge when invested in yen assets, reducing currency risk by aligning assets and liabilities—consistent with Berkshire’s conservative approach. It also signals potential for greater exposure to Japan, where valuations remain attractive and governance is improving. The move further reflects Berkshire’s strong credit quality, allowing access to global funding at favorable rates.
What About Other Insurers?
MetLife, a major U.S. insurer, has built a strong, long-term presence in Japan. MetLife’s most transformative move was acquiring Alico in 2010. It positioned MetLife as a leading force in Japan’s life insurance sector and reinforced its strategic growth ambitions in Asia.
Aflac Inc. established Aflac Ventures Japan in 2019 to invest in cancer care, HealthTech, and InsurTech startups, fostering innovation for Aflac Life Insurance Japan. In 2018, Aflac converted its Japanese branch into a subsidiary. Today, Japan remains a vital revenue driver, underscoring Aflac’s strategic commitment.
BRK.B’s Price Performance
Shares of BRK.B have lost 4.9% year to date, underperforming the industry.
BRK.B’s Expensive Valuation
BRK.B trades at a price-to-book value ratio of 1.42, above the industry average of 1.40. It carries a Value Score of D.
Estimate Movement for BRK.B
The Zacks Consensus Estimate for BRK.B’s first-quarter 2026 EPS has witnessed no movement over the last 30 days, while that for the second quarter moved 6.1% south in the same time frame. The consensus estimate for full-year 2026 has moved 2 cents north, while that for 2027 has moved 4 cents south over the last 30 days.
The consensus estimates for BRK.B’s 2026 and 2027 revenues indicate year-over-year increases. While the consensus estimate for BRK.B’s 2025 EPS indicates a decline, the same for 2026 suggests an increase.
BRK.B stock currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
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Media Contact
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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.