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Amazon, Apollo Global Management and Netflix highlighted as Zacks Bull and Bear of the Day

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For Immediate Release

Chicago, IL – April 17, 2018 – Zacks Equity Research highlights Amazon (AMZN - Free Report) as the Bull of the Day, Apollo Global Management (APO - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Netflix (NFLX - Free Report) .

Here is a synopsis of all three stocks:

Bull of the Day:

Amazon has historically been one of the lower Zacks Ranked stocks.  The Zacks Rank focuses on earnings estimate revisions and Amazon historically was posting losses.  Things changed a few years ago as AWS pushed profits higher and higher.  Now the analysts are getting into the habit of raising estimates into the close of the quarter and that has helped the stock to obtain the best Zacks Rank #1 (Strong Buy) and it is also the Bull of the Day.

Description

Amazon is a retailer and a tech company.  The company sells it all on its website and also offers a suite of technical services via its Amazon Web Services (AWS) segment.

Earnings Ahead

Amazon is slated to report earnings on April 26 after the market is closed.  The current consensus is calling for $49.95B on top and $1.30 on the bottom line.

Given the recent strength in the transports and select retail names, investors would be wise to prep for the upcoming report.

Earnings Estimates

I am going to keep this one rather simple, as there has really only been one move in estimates over the last 60 days.  I see the Zacks Consensus Estimate for 2018 moving from $8.32 to $8.49 over that time period. 

For the following year, I see estimates moving in an even bigger fashion.  90 Days ago the Zacks Consensus Estimate was $14.48, but that number has moved higher, almost a dollar higher.  The current Zacks Consensus Estimate for 2019 is $15.45.

That looks like some big-time implied earnings growth to me.

Beating The Number

AMZN has been beating the number a lot of late. Over the last four quarters, there were three beats and one miss.  The average positive earnings surprise was 1,272% ahead of expectations.  That average is skewed by the September 2017 quarter which was a 5,100% positive earnings surprise.  

The most recent quarter was a 16% positive earnings surprise.  The lone miss was the June 2017 quarter with a 71% negative earnings surprise.

Bear of the Day:

Apollo Global Management beat the Zacks Consensus Estimate but estimates have fallen and they have taken the Zacks Rank down with it.  APO is the Bear of the Day today as a result of it holding the lowest Zacks Rank. Just about all Bear of the Day stocks are a Zacks Rank #5 (Strong Sell).

Description

Apollo Management operates as an alternative asset manager globally. The Company operates in three business segments: private equity, capital markets and real estate. It raises, invests and manages funds on behalf of pension and endowment funds, as well as other institutional and individual investors. Apollo Management, L.P. is headquartered in New York, New York.

Estimate Revisions

The major reason that stocks fall to a Zacks Rank #5 (Strong Sell) is due to negative earnings estimate revisions.

Over the last 30 days, there have been 4 negative revisions to the current quarter and 3 to the next quarter.  There have been 4 negative revisions to the current year and 2 to next year as well.

There have not been any positive earnings estimate revisions over the last 7, 30 or 60 days.

Zacks Consensus Estimate

The Zacks Consensus Estimate for 2018 was $3.22 60 days ago, but it has been moving lower.  30 days ago it stood at $3.20 and then slipped to $2.81 a week ago.  Now we are looking at $2.27, a fall of nearly $1 per share in earnings estimates.

The 2019 number has seen some up and down movement, with $3.16 as the estimate 90 days ago and then kicking higher to $3.31 60 days ago.  The 2019 number has slid, but not as dramatically, ending up at the current level of $3.26.

Additional content:

Netflix Soars, Adding 741 Million Members in Q1

Netflix just released its first quarter financial results, posting adjusted earnings of $0.64 per share and revenues of $3.7 billion.

Netflix is currently a Zacks Rank #2 (Buy), which is subject to change based on today’s results. Netflix shares had climbed 41% over the last 12 weeks, but slipped roughly 3% during the last month.

Shares of Netflix were down 1.24% on Monday prior to the release of its first quarter earnings results. Netflix stock is currently up 6.2% to $326.98 per share in after-hours trading shortly after its earnings report was released.

NFLX:

Beat earnings estimates. The company posted adjusted earnings of $0.64 per share, just beating the Zacks Consensus Estimate of 0.63 per share.

Beat revenue estimates. The company saw revenue figures of $3.7 billion, topping our consensus estimate of $3.69 billion.

Netflix’s revenues jumped 40.4% from $2.64 billion in the year-ago period. Meanwhile, the streaming giant’s adjusted Q1 earnings surged from $0.40 per share.

Netflix added 7.41 million new members, which is up 50% year over year, and topped the company’s forecast of 6.35 million. The streaming company closed the quarter with 125 million total members.

Looking forward to the second quarter, Netflix expects to add 6.2 million new members. The company noted that it is targeting a full-year operating margin between 10% and 11%.

Here’s a graph that looks at NFLX’s Price, Consensus and EPS Surprise history:

Check back later for our full analysis on NFLX’s earnings report!

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Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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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