For Immediate Release
Chicago, IL – October 9, 2018 – Zacks Equity Research Verso Corp (VRS - Free Report) as the Bull of the Day, Anheuser-Busch InBev (BUD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet Inc. (GOOGL - Free Report) , Amazon (AMZN - Free Report) and Apple (AAPL - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
The Russell 2000 has taken a mighty tumble since breaking down through its 50-day moving average. The volatility has taken many small caps off down from their highs. As I’m sifting through the wreckage, I’m looking for stocks with solid earnings and great future prospects which are oversold. An easy way to do is to look for Zacks Rank #1 (Strong Buy) stocks. These stocks have had recent earnings estimate revisions to the upside, confirming the bullishness of analysts.
Today’s Bull of the Day is Zacks Rank #1 (Strong Buy) Verso Corp. Verso Corporation produces and sells coated papers in North America. It operates through two segments, Paper and Pulp. The company offers coated freesheet and coated groundwood, specialty, inkjet and digital, supercalendered, and uncoated freesheet papers; and northern bleached hardwood Kraft pulp to manufacture printing, writing, and specialty paper grades, as well as to manufacture tissue products. Its paper products are used primarily in media and marketing applications, including catalogs, magazines, and commercial printing applications, such as high-end advertising brochures, annual reports, and direct-mail advertising; and specialty applications comprising flexible packaging, and label and converting.
A quick glance at the Detailed Estimates tab on Zacks reveals why the stock carries the bullish Zacks Rank. Over the last ninety days, two analysts have increased their earnings estimates for the current quarter and current year. The bullish revisions have pushed our Zacks Consensus Estimate from 90 cents to $1.73 for the current quarter while the current year number has more than tripled, from 98 cents all the way up to $3.09.
That big jump in consensus has helped the stock go on an absolute tear over the last quarter. The stock was trading down in the low $20s before the revisions hit the wire, surging over $34 at the start of this month. Over the last week, with the small caps coming under pressure and the broad market looking for direction, the stock has been consolidating in the $32s. A positively-sloped 50-day moving average is helping to confirm the bullish trend over the intermediate term.
Bear of the Day:
Today’s Bear of the Day is in an industry which ranks in the Bottom 5% of our Zacks Industry Rank. That means that the stock, along with many of its peers, has seen downward earnings estimate revisions coming from analysts. It doesn’t mean that the stock is necessarily doomed, it just means that investors could see the earnings picture get worse before it gets better.
I’m talking about Zacks Rank #5 (Strong Sell) Anheuser-Busch InBev. Anheuser-Busch InBev SA/NV, a brewing company, engages in the production, distribution, and sale of beer, alcoholic beverages, and soft drinks worldwide. It offers a portfolio of approximately 500 beer brands, including Budweiser, Corona, and Stella Artois; Beck's, Castle, Castle Lite, Hoegaarden, and Leffe; and Aguila, Antarctica, Bud Light, Brahma, Cass, Chernigivske, Cristal, Harbin, Jupiler, Klinskoye, Michelob Ultra, Modelo Especial, Quilmes, Victoria, Sedrin, Sibirskaya Korona, and Skol.
The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions coming from analysts. Over the last sixty days, two analysts have cut their current year and next year earnings numbers. The bearish moves have cut our Zacks Consensus Estimate for the current year from $4.65 to $4.31 while next year’s number has dipped from $5.36 to $4.97.
Looking across the Alcoholic Beverages industry, many stocks have seen negative revisions.
Evaluating Alphabet (GOOGL - Free Report) Ahead of "Made By Google" Event
Alphabet Inc.’s Google is set to host a product launch event in New York Tuesday as it ramps up its product efforts in a growing battle against Amazon, Apple and others. So, let’s look at what to expect from the “Made by Google” event and evaluate GOOGL stock.
Made by Google
Google’s New York City press event Tuesday will likely see the company introduce its next-generation Pixel smartphones. The new Pixel 3 and the Pixel 3XL have been rumored for some time now. Like Apple’s iPhones, Google’s new phones will be separated by size. The phones reportedly run Google’s new Android 9.0 Pie software and feature wireless charging and a second selfie camera.
The tech giant might also introduce its new smart home assistant, with access to offerings such as YouTube. Google’s “Home Hub” is said to help control other smart home products, such as security cameras and lights. However, Google’s new offering isn’t expected to feature a webcam for video chatting. This might be a drawback compared to Amazon’s new Echo Show and Facebook’s new smart speaker.
The star of Tuesday’s show could end up being Google’s new tablet. The new Chrome OS-based “Pixel Slate” tablet might help Google challenge Apple’s iPad, at a lower price point. Made by Google might also feature some other significant announcements that could help the search engine giant compete in a quickly expanding smart device market.
Google is coming off a quarter where its total revenues jumped 26% to $32.65 billion. This is impressive growth for a company of its size. Alphabet, which has become the most powerful advertising player in the U.S., saw its ad revenues climb 24%, while paid clicks on Google properties soared 58%. Meanwhile, the firm’s “Google other revenues” category, which is comprised of the Google Play Store, Google Cloud offerings, and its hardware initiatives, surged over 36%.
Shares of GOOGL are up over 17% during the last 12 months, which outpaces the S&P 500’s roughly 14% jump and its industry’s 13%. With that said, shares of Alphabet have slipped recently, down over 1% in the last month.
Looking ahead, Google is projected to see its Q3 revenues jump by 22.4% to hit $27.25 billion, based on our current Zacks Consensus Estimate. Meanwhile, the company’s full-year revenues are expected to hit $109.60 billion, which would represent a nearly 23% surge.
At the other end of the income statement, Alphabet’s adjusted quarterly earnings are projected to pop by 9.7% to hit $10.5 per share. The firm’s adjusted EPS figure is expected to climb approximately 24% in fiscal 2018.
Alphabet is currently a Zacks Rank #3 (Hold) based on its recent earnings estimate revisions trends. But the company also sports an “A” grade for both Value and Momentum in our Style Scores system.
Alphabet is scheduled to report its third quarter 2018 financial results on Thursday, October 25.
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