B&G Foods, Kohl's, Dave & Buster's Entertainment, AK Steel and Applied Materials highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – January 18, 2017 –Zacks Equity Research highlights B&G Foods (NYSE: BGS – Free Report ) as the Bull of the Day and Kohl’s Corp (NYSE: KSS – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Dave & Buster’s Entertainment (NASDAQ: PLAY – Free Report ), AK Steel Corp. (NYSE: AKS – Free Report ) and Applied Materials Inc. (NASDAQ: AMAT – Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

B&G Foods (NYSE:BGS – Free Report ) is a food products company with a huge portfolio of well-known brands. They manufacture and market processed and packaged foods across the United States and Canada.

Solid Third Quarter Results

The company reported their Q3 results on Oct 27, 2016.Net sales for the quarter surged 49.2%, thanks mainly to the acquisition of Green Giant.

Gross profit as a percentage of net sales increased to 36.3% from 33.6% in Q3 2015, primarily driven by the acquisition of Green Giant.

Adjusted net income came in at $36.7 million, or $0.56 per share, beating the Zacks Consensus Estimate of $0.52 per share. This was the third consecutive quarterly beat for the company. In the past four quarters, they have posted an average positive quarterly surprise of 12.16%.

Rising Estimates

After better than expected results and revised guidance, analysts have raised estimates for the company. Zacks Consensus Estimates for the current and the next year are now $2.18 per share and $2.43 per share respectively, up from $2.17 and $2.31, before the results.

Bear of the Day :

Headquartered in Menomonee Falls, WI, Kohl’s Corp (NYSE: KSS – Free Report ) operates about 1,100 stores across 49 states and an e-commerce site. Falling estimates sent the stock to a Zacks Rank #5 (Strong Sell).

Weak Guidance Reflects Rising Challenges

Earlier this month, the retailer reported that their comparable sales decreased 2.1% year-over-year in the months of November and December 2016 combined.

“Sales were volatile throughout the holiday season. Strong sales on Black Friday and during the week before Christmas were offset by softness in early November and December,” said the CEO.

They also cut their FY 2016 earnings guidance to $2.92 to $2.97 per share from $3.12 to $3.32 per share. The stock plunged about 19% after the report.

The guidance reflected rising challenges for the industry that is struggling with dwindling foot traffic at stores and continuing transition to online shopping.

Falling Estimates

Analysts have slashed their estimates for the company after weak guidance. Zacks Consensus Estimates for the current and next fiscal year have fallen to $3.64 per share and $3.84 per share from $3.93 and $4.21 respectively, before the report.

Additional content:

How to Find Market-Beating Growth Stocks in 2017

Both Wall Street and investors look to fast growing stocks to send the market higher during a bull run, and our current low-interest rate landscape should allow for high-growth stocks to prosper.

But how do you find solid growth stocks in this market climate? An easy way to navigate through the hundreds of options is by utilizing high quality stock screeners. Screening helps investors narrow down companies based on the essential ability to meet every condition important to the user. Any stock that misses even one of the requirements will be filtered out.

This lets investors easily choose ideal-for-them metrics. Screens are effective because they only keep the best in, helping you select criteria that you believe will lead to an increase in price. It isn’t always easy to create a successful screen, but with Zacks Premium Screens , investors have reaped profits time and time again. Our predefined criteria are carefully chosen to capture stocks with the best opportunity to beat the market.

Today, I’ve found three growth stocks using one of our most popular premium screens, Market Beating Growth Stocks. Some of the metrics of this screen include:

• Zacks Rank #1 (Strong Buy)

• Zacks Growth Style Score = A

• This Year’s Estimated EPS Growth (F1/F0) >= 20%

• Last Close >= 5

• Average 20-Day Volume >= 100,000

Let’s see what the screen has discovered this time around.

Dave & Buster’s

Along with having a great stock ticker, Dave & Buster’s Entertainment (NASDAQ: PLAY – Free Report ) is a fast-growing company in the restaurant industry, cleverly combining dining, drinking, and gaming all into one. The stock has a Zacks Rank #1 (Strong Buy), as well as a Zacks Growth Style Score of ‘A.’ PLAY last closed out at $55.02 per share, and has an average 20-day trading volume of more than 514,793.

As for growth estimates, Dave & Buster’s looks golden. The company’s EPS is expected to gain almost 35% for 2017, with six positive estimate revisions in the last 60 days compared to none lower. Dave & Buster’s has a history of stellar earnings growth, and with an average surprise of 37.81%, don’t be surprised when PLAY continues to soar.

AK Steel

American steel giant AK Steel Corp. (NYSE: AKS – Free Report ) is known for producing flat-rolled carbon, stainless, and electrical steel products, as well as carbon and stainless tubular steel products for the automotive, appliance, construction, and manufacturing markets. AKS is a #1 (Strong Buy) on the Zacks Rank, with a Zacks Growth Style Score of ‘A.’ The stocks last closed out at $9.71 per share, and has an average 20-day trading volume of 15,155,222.

AK Steel has grown tremendously since its IPO back in 1994, and it looks like it has no plans of slowing down. The company expects EPS growth of over 209% this year, with three positive estimate revisions in the last 60 days compared to three negative revisions in the same time frame. AK Steel has beaten earnings in the last four consecutive quarters, and has an average surprise of just over +170%.

Applied Materials

Likely the lesser known company on this list, Applied Materials Inc. (NASDAQ:AMAT – Free Report ) manufactures equipment and software for semiconductor chips for electronics, solar products, and flat panel displays for computers, smartphones, and televisions. AMAT is a #1 (Strong Buy) on the Zacks Rank, and has a Zacks Growth Style Score of ‘A.’ Its last closing price was $33.79, while its average 20-day trading volume is around 7,242,992 shares.

Looking ahead, 2017 should be a good year for Applied Materials. The company expects estimated EPS growth roughly 38.75% for this year, with 10 positive estimate revisions compared to none lower. Sales are estimated to gain 17.6% in the same time frame. AMAT has beaten earnings expectations for the past four consecutive quarters, and has a humble average surprise of +4.54%.

Bottom Line

While investing in growth stocks can pose a risky bet at times, especially in comparison to value or momentum stocks, they traditionally have the highest potential for the greatest returns. The three stocks detailed above are expected to have a great 2017. Dave & Buster’s, AK Steel, and Applied Materials all operate in fundamentally strong industries, and each company boasts unique characteristics to help it stay ahead of the competition.

To begin using Zacks Premium Screens to discover more stock picks based on metrics most important to you—plus, gain access to the Zacks #1 Rank List, +1,000 Equity Research Reports, Earnings Surprise Filter, the award-winning Focus List portfolio of 50-longer-term stocks and much more—start your 30-day free trial to Zacks Premium now.

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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.

Strong Stocks that Should Be in the News

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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B&G Foods Inc. (BGS): Free Stock Analysis Report
 
Kohl's Corp. (KSS): Free Stock Analysis Report
 
Dave & Buster's Entertainment Inc. (PLAY): Free Stock Analysis Report
 
AK Steel Holding Corp. (AKS): Free Stock Analysis Report
 
Applied Materials Inc. (AMAT): Free Stock Analysis Report
 
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