For Immediate Release
Chicago, IL – November 12, 2021 – Zacks Equity Research Shares of Donnelley Financial Solutions, Inc. DFIN as the Bull of the Day, Beyond Meat, Inc. BYND as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Crocs, Inc. CROX, Tri Pointe Homes, Inc. TPH and Tractor Supply Company TSCO.
Here is a synopsis of all five stocks:
– Zacks
Bull of the Day:
When I am on the hunt for the “next big thing” I always start the same way. I look for stocks with consistent earnings growth over several quarters. Even better, if there was a downwards earnings trend that reversed and now is heading higher. It shows there has been a huge change to either the market or the individual company. It can lead to some serous gains if I can catch it before the rest of the market does.
One way to find these ideas is by using the Zacks Rank. Stocks in the good graces of the Zacks Rank have seen recent earnings estimate revisions coming from analysts. These positive revisions tell me the analysts know something I don’t, and perhaps the rest of the market does not know either.
Today’s Bull of the Day is a stock I found several months ago and is a success story. It’s Donnelley Financial Solutions. Donnelley Financial Solutions is a leader in risk and compliance solutions, providing insightful technology, industry expertise and data insights to clients across the globe.
Donnelley Financial Solutions is a Zacks Rank #1 (Strong Buy). The reason for the favorable Zacks Rank is the positive earnings estimate revisions coming from analysts. Over the last thirty days, analysts have increased their estimates for the current quarter, current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates for each of those time periods. Current quarter estimates are up from 79 cents to $1.26, current year is up from $4.07 to $5.12, while next year is up from $4.43 to $5.68. That current year number for Donnelley Financial Solutions represent year-over-year EPS growth of 147%. That is on revenue growth of just 10%.
A recent string of earnings beats for Donnelley Financial Solutions is forcing analysts to move their numbers higher. Last quarter’s $1.36 EPS number was 67% better than the 81-cent estimate. Over the last four quarters, Donnelley Financial Solutions has beat earnings by an average of 47 cents.
Bear of the Day:
For several months, today’s Bear of the Day was one of the hottest stocks on Wall Street. Everybody was talking about how it was going to revolutionize the industry. In the future, that may still be true. However, right now, earnings are moving in the wrong direction. One way to figure that out is by looking at our Zacks Rank. The Zacks Rank helps find stocks with the strongest earnings trends. Stocks which are not in the good graces of the Zacks Rank have earnings which are moving in the opposite direction, to the downside.
Today’s Bear of the Day is a stock with earnings currently moving in the wrong direction. I’m talking about Beyond Meat. Beyond Meat, Inc., a food company, manufactures, markets, and sells plant-based meat products in the United States and internationally. It operates under the Beyond Meat, Beyond Burger, Beyond Beef, Beyond Sausage, Beyond Breakfast Sausage, Beyond Chicken, Beyond Fried Chicken, Beyond Meatball, the Caped Steer Logo, Go Beyond, Eat What You Love, The Cookout Classic, The Future of Protein, and The Future of Protein Beyond Meat and design trademarks. The company sells its products through grocery, mass merchandiser, club, convenience store, natural retailer channels, restaurants, foodservice outlets, and schools, as well as through an e-commerce site.
Currently, Beyond Meat is a Zacks Rank #5 (Strong Sell). The reason for the unfavorable rank is the series of negative earnings estimate revisions coming from analysts. Over the last thirty day, four analysts have cut their earnings estimates for the current year while five have done so for next year. The bearish moves have dropped the Zacks Consensus Estimates for Beyond Meat’s current year from a $1.17-per-share loss to a $1.52 loss. Next year’s number is off from a 54-cent loss to 99-cents.
Beyond Meat has a history of disappointing earnings reports. Over the last year, Beyond Meat has missed earnings by an average of 21-cents. Last quarter’s 87-cent loss was 46 cents worse-than-expected.
That being said, Beyond Meat still has very strong growth in both EPS and revenues. Next year, earnings are expected to grow 34.9%. Revenue growth is more impressive though, with current year growth at 23.13% and next year at 44.87% growth.
The Food – Meat Products industry is in the Top 12% of our Zacks Industry Rank. Several other names in the industry are in the good graces of our Zacks Rank.
Additional content:
3 Growth Stocks with a Zacks Rank #1 (Strong Buy)
What an amazing start to November! A ‘goldilocks’ jobs report, a taper announcement and passage of a $1.2 Trillion infrastructure package. And amid all this, investors enjoyed a solid earnings season that reassured nervous investors at a time of soaring inflation and severe global supply chain issues.
Oh, and the major indices started the month with a solid week of new highs. There may never be a better time to take a look at the Zacks #1 Rank Growth Stocks screen.
In addition to a Strong Buy ranking, this strategy also looks for stocks with a minimum 20% historical growth EPS rate and a 20% or more projected growth rate. We’re looking for big growth in the past and the present that will lead to big growth in the future.
Below are three names that recently passed the test for this screen:
Crocs
Crocs fell victim to the globe’s severe supply chain issues just like most other retailers, but this popular footwear brand proved to be as durable and flexible as its iconic clogs and sandals. Despite the challenges, CROX continues to beat earnings estimates and also raised its revenue growth forecast for fiscal 2021.
If you don’t own a pair of Crocs yourself, then you certainly know someone who does. It’s one of the leading footwear brands in the world and is famous for its clog material