For Immediate Release
Chicago, IL – May 21, 2018 – Zacks Equity Research highlights Canadian Solar CSIQ as the Bull of the Day and Anheuser-Busch InBev BUD as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Best Buy BBY, Ralph Lauren RL and Urban Outfitters URBN.
Here is a synopsis of all three stocks:
Bull of the Day:
California recently became the first state in the country to require solar panels for all new homes. The rule is set to go into effect starting in 2020. It’s part of the state’s plan to cut energy use int new homes by more than fifty percent. This sort of mandate from the largest state in the union instantly created huge upcoming demand for solar. That news was enough to get investors excited about solar stocks just like today’s Bull of the Day, Canadian Solar.
Now before you start raging about how this is a Canadian company, not a US company, understand the size and scope of Canadian Solar. Canadian Solar Inc., together with its subsidiaries, designs, develops, manufactures, and sells solar ingots, wafers, cells, modules, and other solar power products primarily under the Canadian Solar brand name. The company operates through two segments, Module and Energy. Its products include various solar modules that are used in residential, commercial, and industrial solar power generation systems. The company also provides specialty solar products consisting of Andes Solar Home System, an off-grid solar system that provides an economical source of electricity to homes and communities without access to grid; and Maple Solar System, a clean energy solution for families, as well as solar system kits, which are a ready-to-install packages that consist inverters, racking systems, and other accessories. The company has operations in North America, South America, Europe, Africa, the Middle East, Australia, and Asia.
The company is currently a Zacks Rank #1 (Strong Buy). The reason for the favorable Zacks Rank is the recent bullish behavior coming from analysts. Over the last week, four analysts have increased their earnings estimates for the current year. The huge moves have pushed up the Zacks Consensus Estimate for the current year from $1.40 to $2.06. That now represents EPS growth of 21.89% on revenues estimated to be 32.45% higher than last year.
Bear of the Day:
Not long ago, the alcoholic beverage industry underwent major changes. Huge companies, once rivals, found themselves merged together. The conglomerates were taking over the industry. All while smaller craft breweries were popping up all around America, meeting demand for higher-end beers. Now that the dust has settled, some of these behemoths are having trouble delivering the type of growth they originally thought possible.
Today’s Bear of the Day is 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 stock is current a Zacks Rank #5 (Strong Sell). The reason for the unfavorable Zacks Rank is the dip in earnings estimates coming from analysts. For the current quarter, two analysts have dropped their estimates over the last thirty days. Over the same period, four analysts have cut their estimates for the current year. The bearish moves have cut the current quarter Zacks Consensus Estimate from $1.39 to $1.15 while the current year’s number has dipped from $5.18 to $4.72.
Despite that negative move in earnings estimates, the company is still slated to show some solid growth for the quarter. Current quarter EPS growth is expected to come in at 21.05%. However, next quarter’s numbers are projected to slow to only 76 bps of growth. That sort of slow down may be what’s brought the stock down from its highs.
3 Retail Stocks to Buy Ahead of Quarterly Earnings
It has been a busy week for retailers, with industry giants all reporting their first quarter earnings results. But Q1 hasn’t treated all of these companies the same, so let’s take a look at a few more big-name retailers that investors might want to consider buying ahead of earnings next week.
Shares of Macy’s surged over 11% on Wednesday after the company topped both top and bottom line estimates, and raised its full-year earnings guidance. Meanwhile, fellow department store power Nordstrom did not perform as well and saw its stock price sink nearly 10% through morning trading on Friday after its comps climbed only 0.6%.
With that said, there are clearly still gains to be had from retail stocks even as worries about Amazon (AMZN) and other online sellers mount. Investors just need to look in the right places and search for stocks that are expected to top quarterly earnings estimates.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to surprise, in one way or the other. This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Today, we are giving our readers a free look at three of these strong stocks ahead of their upcoming quarterly earnings reports. Check them out now:
1. Best Buy
Shares of Best Buy are up 55% over the last year and have also climbed 7.4% in the last four weeks. The big-box electronics retailer is expected to see its Q1 revenues pop by 2.8% to hit $8.77 billion, based on our Zacks Consensus Estimates. Meanwhile, Best Buy’s earnings are projected to surge by 25% to touch $0.75 per share.
Best Buy’s Most Accurate Estimate—the representation of the most recent analyst sentiment—calls for quarterly earnings of $0.76 per share, which is 1 cent better than our current consensus estimate. The company is also currently a Zacks Rank #2 (Buy) and sports an Earnings ESP of 2.01%. Therefore, investors can consider BBY as a stock that could top quarterly earnings estimates when it reports its Q1 financial results before the market opens on Thursday, May 24.
2. Ralph Lauren
Moving on, Ralph Lauren is another famous name in retail that has outperformed the S&P 500 by a wide margin. The stock has soared 59% over the last year and has also climbed 5.6% over the last 12 weeks. Ralph Lauren’s quarterly revenues are expected to dip by 4.7% to hit $1.49 billion. At the other end of the income statement, RL is also projected to experience a decline from the prior-year period.
Our current estimates are calling for Ralph Lauren’s quarterly earnings to slip by 3.4% to hit $0.86 per share. However, the company is currently a Zacks Rank #2 (Buy) and rocks an earnings ESP of 2.92%, mostly because its bottom line estimates have climbed recently. RL’s Most Accurate Estimate comes in at $0.88 per share, which is 2 cents above our current consensus estimate. This means that the upscale fashion giant could impress investors with a bottom line beat that might send its stock up, at least in the near-term. Ralph Lauren is set to report its quarterly results before the opening bell on Wednesday, May 23.
3. Urban Outfitters
Urban Outfitters has seen its stock price skyrocket 120% over the last year and 20% during the last 12 weeks. The trendy fashion retailer’s quarterly revenues are projected to climb by nearly 10% to touch $837.08 million. Investors should also be excited to see that Urban Outfitters’ earnings are expected to hit $0.30 per share, which would mark a 130.7% surge from the prior-year quarter.
URBN is also currently a Zacks Rank #2 (Buy), with an Earnings ESP of 2.52%. URBN’s Most Accurate Estimate is also coming in 1 cent better than our current consensus estimate. This, of course, means that Urban Outfitters could top earnings estimates when it reports its Q1 financial results after market close on Tuesday, May 22.
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Anheuser-Busch InBev SA/NV (BUD) : Free Stock Analysis Report
Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report
Best Buy Co., Inc. (BBY) : Free Stock Analysis Report
Ralph Lauren Corporation (RL) : Free Stock Analysis Report
Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
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