Why DraftKings Could Keep Outperforming in 2023

Precious metals like gold and silver have been rallying lately. Let's find out which metal will rule ahead? Precious metals like gold and silver have been rallying lately. This is because investors have been seeking safe-haven investments amid growing risks emanating from the banking crisis in the United States and Europe, high inflation, hawkish central banks, fear of prolonged global growth slowdown and the ongoing uncertainty surrounding U.S.-China relations as well as the Russia-Ukraine war.In the latest statement from the Federal Open Market Committee (FOMC), the Fed hiked interest rates by 25 basis points (bps), to a funds range of 4.75%-5.00%. The move was largely expected. However, the Fed’s language in its statement grew notably milder from the last meeting, even as it clearly stated that inflation is still “elevated.” The Fed also indicated that “some additional policy firming may be appropriate.”A softening in the Fed’s hawkish tone and the resultant decline in U.S. rates should weigh on the dollar against a basket of currencies, raising the precious metals’ attractiveness as these do not pay interest like fixed-income assets. Notably, the U.S. dollar is now at a seven-week low. Analysts believe that precious metal prices will witness momentum.The Fed indicated that further increases in borrowing costs might be postponed (or there may be just one more rate hike worth 25 bps this year) due to the recent failure of two U.S. banks. A low-interest-rate environment makes non-yielding bullion an intriguing bet. Plus, gold is traditionally viewed as an inflation hedge and thus is well-positioned to take advantage of the recent spike in global inflation.SPDR Gold Shares GLD has risen 8.1% in the past month, while iShares Silver Trust SLV has gained 4%. But in the past five days, SLV has added 5.8% versus a 2.7% uptick in GLD (as of Mar 22, 2023).What to Buy Ahead? Gold or SilverWe believe that gold has run up a little bit higher. It’s just 1% off from its 52-week high whereas silver is still 13% off its 52-week high. So, the poor man’s gold has more room to run than the yellow metal. Moreover, the operating backdrop is more favorable for silver as it has high usage in industrial activities. About 50% of the total demand for silver comes from industrial applications.The Fed is likely to take less-hawkish actions, going forward. This should bolster industrial activities. Manufacturing activity in China expanded and logged its highest reading in nearly 11 years. China’s reopening following the COVID-led lockdown is a huge plus for the manufacturing sector.Growth in the global solar PV industry and new sources of demand for sensors used in IoT are providing a boost to silver demand. The recent emergence and faster rollout of 5G globally is another positive for silver. The electronic components that enable 5G technology depend on silver greatly. Silver’s role in electronic applications used in 5G is forecast to rise significantly.Bottom LineIf we go by the relative strength index (RSI), SLV has an RSI value of 64.31 while GLD has an RSI value of 66.95. An asset is usually considered overbought when the RSI is above 70 and oversold when it is below 30.Hence, the value indicates that while both ETFs are in high momentum, silver has good chances of outperforming gold. But if the economic backdrop remains this edgy, global growth slows down and inflation remains hot, gold will outshine the manufacturing metal silver.ETFs in FocusApart from the largest ETF SLV, investors can also bet on the likes of Aberdeen Standard Physical Silver Shares ETF SIVR, Invesco DB Silver Fund (DBS) and ProShares Ultra Silver AGQ to realize gains in silver.And for gold ETFs, investing options include the likes of iShares Gold Trust IAU, SPDR Gold MiniShares Trust GLDM, abrdn Physical Gold Shares ETF SGOL and ProShares Ultra Gold UGL. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SPDR Gold Shares (GLD): ETF Research Reports iShares Gold Trust (IAU): ETF Research Reports abrdn Physical Gold Shares ETF (SGOL): ETF Research Reports ProShares Ultra Gold (UGL): ETF Research Reports iShares Silver Trust (SLV): ETF Research Reports ProShares Ultra Silver (AGQ): ETF Research Reports abrdn Physical Silver Shares ETF (SIVR): ETF Research Reports SPDR Gold MiniShares Trust (GLDM): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Strategic Education (STRA) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Strategic Education (STRA). Shares have lost about 0.3% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Strategic Education due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Strategic Education Q4 Earnings Miss, Margin FallsStrategic Education, Inc. or SEI reported tepid fourth-quarter 2022 results. The quarterly revenues and earnings missed their respective Zacks Consensus Estimate. Also, both the top and the bottom lines declined year over year. The downside was caused by lower contributions from USHE and ANZ segments.Karl McDonnell, chief executive officer of SEI, stated, “As we begin a new year, we are focused on continued recovery and investing in opportunities for growth within our diversified portfolio of offerings, including strength within our Education Technology Services segment, with the mission to promote economic mobility for working adults.”Inside The HeadlinesSEI reported adjusted earnings of 78 cents per share, which missed the Zacks Consensus Estimate of 94 cents by 17% and declined 32.2% from the year-ago quarter’s reported level of $1.15.Total revenues of $269.9 million missed the consensus estimate of $271 million by 0.6% and declined 0.8% from the prior-year quarter’s level.Segment DetailsSEI currently operates in three reportable segments — U.S. Higher Education or USHE, Education Technology Services (earlier known as Alternative Learning) and Australia/New Zealand or ANZ.USHE: This segment comprises Strayer and Capella Universities. Segment’s revenues grew 0.5% year over year to $199.7 million, with higher revenues per student offsetting lower enrollment. Student enrollment declined 0.8% from the year-ago quarter’s level to 78,062 students. FlexPath enrollment was 19% of USHE enrollment, compared with 18% in the year-ago quarter. During the quarter, the adjusted operating margin declined 340 basis points (bps) to 6.6% compared with the prior-year quarter.Education Technology Services: This segment includes Employer Solutions, Workforce Edge and Sophia Learning. The segment’s quarterly revenues came in at $16.7 million, up 20.4% year over year, backed by growth in Sophia Learning subscriptions and employer-affiliated enrollment. Sophia Learning’s average total subscribers increased approximately 29% from the prior-year period’s levels. Employer-affiliated enrollment was 24.7% of USHE enrollment compared with 21.7% in the year-ago period. Its adjusted operating margin came in at 24.1% in the reported quarter, down 1,240 bps from a year ago.ANZ: This segment includes Torrens University, Think Education and Media Design School. Revenues in the segment totaled $53.5 million, down 10.2% year over year but up 0.6% on a constant-currency (cc) basis. Student enrollment within ANZ was up 3.7% to 19,651 during the reported quarter. The adjusted operating margin was 18.6% in the reported quarter, down 300 bps from the prior-year quarter’s levels.Operating HighlightsThe adjusted operating margin of 10.1% declined 380 bps from the year-ago quarter’s figure. Adjusted EBITDA in the reported quarter was $45.2 million, down 19.4% from $56.1 million in the prior-year quarter.Financial DetailsAs of Dec 31, 2022, STRA recorded cash and cash equivalents of $213.7 million compared with $268.9 million at the 2021-end.Cash provided by operating activities was $126.1 million at 2022-end compared with $180.5 million in the comparable year-ago period. Capital expenditures were $43.2 million compared with $49.4 million a year ago.Capital expenditures for 2023 are now expected to be approximately $45 million.2022 HighlightsIn 2022, revenues declined 5.9% to $1,065.5 million compared with $1,131.7 million in 2021. Adjusted earnings of $2.51 declined from $4.83 reported in 2021.The adjusted operating margin declined 630 bps to 8.3% in 2022 compared with 14.6% in the prior year. Adjusted EBITDA declined 31.4% to $163.1 million from the prior year’s level of $237.7 million.In 2022, student enrollment within USHE decreased 6.5% from the 2021 level. Employer-affiliated enrollment was 24.4% of USHE enrollment versus 21% in 2021. Student enrollment within ANZ increased 0.2% year over year.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -61.44% due to these changes.VGM ScoresCurrently, Strategic Education has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Strategic Education has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Strategic Education Inc. (STRA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Nvidia (NVDA) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Nvidia (NVDA). Shares have added about 14.9% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Nvidia due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. NVIDIA Q4 Earnings and Sales Top Estimates, Down YoYNVIDIA reported better-than-anticipated results for the fourth quarter of fiscal 2023, wherein both the bottom line and the top line surpassed  the Zacks Consensus Estimate. However, the quarterly earnings and revenues, each declined significantly on a year-over-year basis.For the fourth quarter, NVIDIA reported non-GAAP earnings of 88 cents per share, which beat the Zacks Consensus Estimate by 8.6%. Moreover, the reported figure plunged 33.3% year over year while increasing 51.7% sequentially. The year-over-year decline in earnings was mainly due to lower revenues and increased operating expenses.Fourth-quarter revenues plunged 20.8% year over year while climbing 2% sequentially to $6.05 billion, primarily because of continued weakness across its Gaming, Professional Visualization, OEM and Other market segments. However, the top line beat the consensus mark of $6.01 billion.Segment DetailsNVIDIA reports revenues under two segments — Graphics and Compute & Networking.Graphics includes GeForce GPUs for gaming and personal computers, the GeForce NOW game-streaming service and related infrastructure. The segment also offers solutions for gaming platforms, Quadro GPUs for enterprise design, GRID software for cloud-based visual and virtual computing and automotive platforms for infotainment systems.Graphics accounted for 39.3% of fiscal fourth-quarter revenues. The segment’s top line plunged 46% year over year while increased 12% sequentially to $2.38 billion.Compute & Networking represented 60.7% of fiscal fourth-quarter revenues. The segment comprises Data Center platforms and systems for artificial intelligence, high-performance computing and accelerated computing, the DRIVE development platform for autonomous vehicles and Jetson for robotics and other embedded platforms.Compute & Networking revenues soared 14% year over year to $3.67 billion. However, the segment’s revenues declined 4% sequentially.Market Platform’s Top Line DetailsBased on the market platform, Gaming revenues plunged 46% year over year while going up by 16% sequentially to $1.83 billion and accounted for 30.3% of total revenues. The year-over-year decline was primarily due to a lower sell-in of Gaming products. This reflected a reduction in channel partner inventory levels amid weak demand due to macroeconomic headwinds and lockdowns in China, which weighed on consumer demand.Revenues from Data Center (59.8% of revenues) jumped 11% year over year but slashed 6% from the previous quarter to $3.62 billion. This year-over-year rise was driven by the strong demand for its chips across U.S. cloud service providers, consumer internet companies and other vertical industries, while the sequential change reflected lower sales in China.Professional Visualization revenues (3.7% of revenues) decreased 65% year over year but increased 13% sequentially to $226 million. The decline was primarily due to a lower sell-in to partners to help align channel inventory levels with the current demand expectations.Automotive sales (4.9% of revenues) in the reported quarter totaled $294 million, up 135% on a year-over-year basis and 17% sequentially. The increase was mainly driven by the increased revenue contribution from self-driving solutions, computing solutions for electric vehicle makers, strength in sales of AI cockpit solutions and growth in automotive development arrangements.OEM and Other revenues (1.4% of revenues) plunged 56% year over year while rising 15% sequentially to $84 million. The decline was mainly due to the weak performance of Cryptocurrency Mining Processors, which generated nominal sales in the quarter compared with the year-ago quarter. Moreover, lower notebook OEM sales also negatively impacted the overall unit’s performance in the fourth quarter.Operating DetailsNVIDIA’s non-GAAP gross margin contracted by 90 basis points (bps) year over year to 66.1%, mainly due to lower Gaming margins and a higher contribution from Automotive, partially offset by a higher contribution from Data Center.Non-GAAP operating expenses flared up 23% year over year and down 1% sequentially to $1.78 billion on higher compensation-related expenses associated with employee growth and increased data center infrastructure-related expenses.The non-GAAP operating income slumped 40% year over year to $2.22 billion.Balance Sheet and Cash FlowAs of Jan 29, 2023, NVDA’s cash, cash equivalents and marketable securities were $13.30 billion, up from $13.14 billion as of Oct 30, 2022.As of Jan 29, 2023, the total long-term debt (including current maturities) was $9.70 billion, down from the previous quarter’s $10.95 billion.NVIDIA generated $2.25 billion in operating cash flows, down from the year-ago quarter’s $3.03 billion but up from the previous quarter’s $392 million.The free cash flow was an inflow of $1.74 billion compared with year-ago quarter’s $2.74 billion and the previous quarter’s outflow of $156 million.In the full fiscal 2023, the company generated operating and free cash flows of $5.64 billion and $3.75 billion, respectively.In the fourth quarter, the company returned $1.15 billion to shareholders through dividend payouts and share repurchases. In fiscal 2023, NVIDIA paid out $10.44 billion in dividends and common stocks. At the end of the quarter, it had a remaining share-repurchase authorization of $7.23 billion through December 2023.NVIDIA announced a quarterly cash dividend of 4 cents per share payable on Mar 29, 2023, to the shareholders of record on Mar 8, 2023.GuidanceFor the first quarter of fiscal 2024, NVIDIA anticipates revenues of $6.50 billion (+/-2%).The GAAP and non-GAAP gross margins are projected at 64.1% and 66.5%, respectively (+/-50 bps). GAAP and non-GAAP operating expenses are estimated at $2.53 billion and $1.78 billion, respectively.GAAP and non-GAAP other income and expenses, excluding gains and losses from non-affiliated investments, are anticipated at approximately $50 million.The GAAP and non-GAAP tax rate for the quarter is estimated at 13% (+/- 1%).The company projects to make capital expenditures between $350 million and $400 million during the quarter.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed an upward trend in estimates review.VGM ScoresCurrently, Nvidia has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Nvidia has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NVIDIA Corporation (NVDA): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

B2Gold (BTG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for B2Gold (BTG). Shares have added about 15.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is B2Gold due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. B2Gold Earnings Miss Estimates in Q4, Sales Rise Y/YB2Gold Corp. reported adjusted earnings per share (EPS) of 11 cents for fourth-quarter 2022, missing the Zacks Consensus Estimate of 14 cents. The bottom line was flat year over year.Including one-time items, the company reported earnings of 15 cents per share compared with the prior-year quarter’s 13 cents.B2Gold generated revenues of $592 million in fourth-quarter 2022, reflecting year-over-year growth of 12%. The top-line figure was in line with the Zacks Consensus Estimate.In the December-end quarter, B2Gold recorded consolidated gold production of 3,52,769 ounces, up 22.1% year over year. The upbeat performance can be attributed to the record quarterly production at Fekola and the strong operational performance at Masbate Mine. Total consolidated gold production for fourth-quarter 2022 was 3,67,870 ounces (including 15,101 ounces of attributable production from Calibre Mining Corp), up 20.7% from the prior-year quarter.The company reported consolidated cash operating costs of $440 per ounce in the reported quarter, down 4.3% year over year. The consolidated all-in sustaining costs (AISC) of $876 per ounce were 3.8% more than the prior-year quarter.For the October-December quarter, the total cost of sales was $332 million, up 19.4% year over year. The gross profit improved 4.8% year over year to $260 million. The gross margin contracted to 43.9% in the reported quarter from the prior-year quarter’s 47.1%.The operating income in the reported quarter was $232 million compared with the prior-year quarter’s $237 million. The operating margin was 39.2% compared with the year-ago quarter’s 45.1%.Financial PositionB2Gold’s cash and cash equivalents were $652 million at the end of 2022 compared with $673 million witnessed at the end of 2021. The company generated $596 million in cash from operating activities in 2022 compared with $724 million in 2021. The company’s long-term debt was $41.7 million at the end of 2022, down from $49.7 million at the end of 2021.2022 PerformanceB2Gold reported an adjusted EPS of 25 cents in 2022 compared with 37 cents reported in the prior year. Earnings missed the Zacks Consensus Estimate of 27 cents. Including one-time items, the bottom line was 24 cents per share, down from 40 cents in 2021.Sales were down 1.7% year over year to $1.73 billion. The top line was in line with the Zacks Consensus Estimate.OutlookB2Gold expects 2023 total gold production guidance between 10,00,000 and 10,80,000 ounces which includes 60,000-70,000 attributable ounces from Calibre. Total consolidated cash operating costs are projected between $670 and $730 per ounce. Total consolidated AISC is anticipated between $1,195 and $1,255 per ounce.How Have Estimates Been Moving Since Then?Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.VGM ScoresCurrently, B2Gold has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookB2Gold has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerB2Gold belongs to the Zacks Mining - Gold industry. Another stock from the same industry, Barrick Gold (GOLD), has gained 13.9% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.Barrick Gold reported revenues of $2.77 billion in the last reported quarter, representing a year-over-year change of -16.2%. EPS of $0.13 for the same period compares with $0.35 a year ago.For the current quarter, Barrick Gold is expected to post earnings of $0.17 per share, indicating a change of -34.6% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.3% over the last 30 days.Barrick Gold has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report B2Gold Corp (BTG): Free Stock Analysis Report Barrick Gold Corporation (GOLD): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Valmont (VMI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Valmont Industries (VMI). Shares have added about 2.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Valmont due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Valmont’s Q4 Earnings Miss, Sales Beat EstimatesValmont registered earnings of $1.86 per share in fourth-quarter 2022, up from $1.25 in the year-ago quarter.Barring one-time items, adjusted earnings were $3.57 per share in the reported quarter, lagging the Zacks Consensus Estimate of $3.59.Revenues in the quarter were $1,131.5 million, up 17.5% year over year. The figure surpassed the Zacks Consensus Estimate of $1,056.8 million. The company’s performance in the fourth quarter was driven by strong pricing and solid demand for its products and services. Increased demand for the company’s irrigation products and technology solutions in the agricultural market also supported results. High commodity prices, global drought conditions and concerns over food securities are contributing to the demand for its products.Segment HighlightsSales in the Infrastructure segment increased around 15% year over year to $771.3 million in the reported quarter. This upside was backed by favorable pricing globally and increased volumes, especially for the Renewable Energy and Lightening & Transportation product lines. The ConcealFab acquisition also contributed to the growth.Sales in the Agriculture segment rose 21.1% year over year to $335.1 million. The uptick was driven by increased average selling prices of irrigation equipment and higher volumes, particularly in North America and Brazil. Higher sales of technology products and services also drove net sales in this segment.FY22 ResultsEarnings, as adjusted, in full-year 2022 were $13.82 per share compared with $10.92 reported a year ago. Net sales climbed 24.1% to $4,345.2 million.FinancialsValmont ended the quarter with cash and cash equivalents of $185.4 million, up 4.6% year over year. Long-term debt was around $870.9 million, down roughly 8%.Cash flows from operating activities were $326.3 million in 53 weeks ended Dec 31, 2022, up from $65.9 million for the same period a year ago (as of Dec 25, 2022).The company returned $20 million to shareholders through share buybacks during the quarter.OutlookFor 2023, the company expects sales growth of 4-7% and adjusted EPS to be in the range of $15.35-$15.90. It also projects its capital expenditures to be in the band of $105-$125 million for 2023. The company expects higher inflation and moderate currency movements, and stabilized raw material costs in 2023. How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.VGM ScoresAt this time, Valmont has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Valmont has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Valmont Industries, Inc. (VMI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Wix.com (WIX) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Wix.com (WIX). Shares have added about 4.4% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Wix.com due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. WIX Q4 Earnings & Revenues Beat EstimatesWix reported non-GAAP earnings of 61 cents per share for fourth-quarter 2022, exceeding the Zacks Consensus Estimate of 8 cents. The company had incurred a loss of 34 cents per share in the previous-year quarter.Total revenues increased 6% year over year to $355 million and beat the Zacks Consensus Estimate of $351.7 million. On a constant-currency basis, total revenues were $361.4 million, up 8% year over year.At the end of 2022, registered users were 243 million, up 10% year over year.Quarter in DetailCreative Subscriptions’ revenues (74.7% of total revenues) increased 8% year over year to $265.3 million. Business Solutions’ revenues (25.3% of total revenues) rose 3% to $89.8 million.In fourth-quarter 2022, Creative Subscriptions’ annualized recurring revenues were $1.08 billion, up 7% year over year.Bookings were $371.8 million, up 6% year over year. Creative Subscriptions’ bookings increased 7% year over year to $281.8 million. Business Solutions’ bookings rose 3% to $90 million.Region-wise, North America, Europe, Asia and others, and Latin America contributed 59%, 26%, 11% and 4% to fourth-quarter 2022 revenues, up 10%, 8%, 2% and 2% year over year, respectively.Operating DetailsNon-GAAP gross margin expanded 330 basis points to 65%, driven by cost reduction plans.Non-GAAP research and development expenses, as a percentage of revenues, were 25% compared with 26% reported in the previous-year quarter. Non-GAAP selling and marketing expenses were 25% compared with 35% reported in the previous-year quarter. This was driven by lowering acquisition-marketing investment.Wix reported a non-GAAP operating income of $30.7 million against a non-GAAP operating loss of $22.2 million in the year-ago quarter.Balance Sheet & Cash FlowAs of Dec 31, 2022, Wix had cash and cash equivalents of $1.3 billion. Long-term debt was $567 million compared with $566 million as of Sep 30, 2022.Cash flow provided from operations amounted to $53.2 million compared with $21 million in the year-ago quarter.Capital expenditures totaled $14.6 million. Free cash outflow was $38.6 million.GuidanceFor first-quarter 2023, revenues are expected to be between $367 million and $371 million, suggesting 7-9% growth from the prior-year quarter's reported figure.The company now expects 2023 revenues to grow 9-11% and be in the range of $1,510-$1,535 million. Wix expects new cost cutting measures to generate an additional $50 million of savings in 2023.For 2023, Wix expects free cash flow (excluding HQ capital expenditure) to be in the range of $152-$162 million, representing 10-11% of revenues.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.The consensus estimate has shifted 27.71% due to these changes.VGM ScoresAt this time, Wix.com has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Wix.com has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wix.com Ltd. (WIX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Ansys (ANSS) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. It has been about a month since the last earnings report for Ansys (ANSS). Shares have added about 6.8% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Ansys due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. ANSYS Q4 Earnings Beat Estimates, Revenues Up Y/YANSYS reported fourth-quarter 2022 earnings of $3.09 per share, beating the Zacks Consensus Estimate by 10.8%. The bottom line increased 10% year over year.Non-GAAP revenues of $694.7 million surpassed the Zacks Consensus Estimate by 7.5%. The top line increased 5% (up 10.2% at constant currency or cc) from the year-ago quarter.The company’s solutions continue to witness strong demand in high-tech, aerospace and automotive, along with strong growth across all regions. Deferred revenues and backlogs were $1.417 billion, up 12.6% year over year.Quarter in DetailSubscription lease revenues (46.7% of non-GAAP revenues) increased 11.6% at cc to $324.7 million. Perpetual licenses’ revenues (12.8%) decreased 2.4% year over year at cc to $89 million.Maintenance revenues (37.8%) increased 13.3% at cc to $262.3 million. Service revenues (2.7%) were up 12.7% year over year to $18.9 million.Direct and indirect channels contributed 80.7% and 19.3%, respectively, to non-GAAP revenues.Annual contract value or ACV increased 8% year over year (up 13% at cc) to $818 million.On a geographic basis, non-GAAP revenues from the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 51.7%, 28.8% and 19.5% to non-GAAP revenues, respectively.Non-GAAP revenues from the Americas were up 16.4% to $359.2 million at cc. Revenues from EMEA increased 3.4% to $199.8 million at cc. Revenues from the Asia-Pacific increased 6.9% to $135.7 million at cc.Operating DetailsThe non-GAAP gross margin expanded 170 basis points (bps) on a year-over-year basis to 94%.Total operating expenses increased 7.1% year over year to $372.6 million due to higher research and development, and selling, general and administrative expenses.The non-GAAP operating margin expanded 120 bps on a year-over-year basis to 48%.Balance Sheet & Cash FlowAs of Dec 31, 2022, cash and short-term investments amounted to $614.6 million compared with $668.1 million as of Dec 31, 2021.As of Dec 31, 2022, the company’s long-term debt was $753.6 million compared with $753.6 million as of Dec 31, 2021.In the quarter under review, cash from operations increased 71% year over year to $174 million.In the quarter under review, the company repurchased 225,437 shares for $50 million. In 2022, the company repurchased 725,437 shares for $205.6 million. As of Dec 31, 2022, it had 1.7 million shares remaining under the share buyback program.GuidanceFor first-quarter 2023, ANSYS expects non-GAAP earnings of $1.53 - $1.71 per share.Non-GAAP revenues are anticipated to be between $482.5 million and $507.5 million. Management projects a non-GAAP operating margin of 35.3-37.3%.For 2023, ANSYS expects non-GAAP revenues of $2,242 - $2,322 million. Management expects a non-GAAP operating margin of 41-42% for 2023.Non-GAAP earnings are envisioned to be in the range of $8.34-$8.86 per share.ACV is anticipated to be between $2,265 million and $2,335 million while operating cash flow is projected between $673 million and $723 million for 2023.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.The consensus estimate has shifted 10.64% due to these changes.VGM ScoresAt this time, Ansys has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Ansys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerAnsys is part of the Zacks Computer - Software industry. Over the past month, Cadence Design Systems (CDNS), a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended December 2022 more than a month ago.Cadence reported revenues of $899.88 million in the last reported quarter, representing a year-over-year change of +16.4%. EPS of $0.96 for the same period compares with $0.82 a year ago.Cadence is expected to post earnings of $1.25 per share for the current quarter, representing a year-over-year change of +6.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.2%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Cadence. Also, the stock has a VGM Score of D. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ANSYS, Inc. (ANSS): Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Merit Medical (MMSI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Merit Medical (MMSI). Shares have lost about 0.7% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Merit Medical due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Merit Medical Q4 Earnings Top Estimates, Margins DownMerit Medical delivered adjusted earnings per share of 79 cents in the fourth quarter of 2022, up by 11.3% year over year. The figure also surpassed the Zacks Consensus Estimate by 17.9%.The adjustments include expenses related to the amortization of intangibles, and corporate transformation and restructuring, among others.Our projection of adjusted earnings per share was 66 cents.GAAP earnings per share for the quarter was 58 cents a share, up by 61.1% year over year.Full-year adjusted earnings per share was $2.70, up 13.9% from the end of 2021. Our projection of full-year adjusted earnings per share was $2.56.Revenues in DetailMerit Medical registered revenues of $293.4 million in the fourth quarter, up 5.4% year over year. The figure surpassed the Zacks Consensus Estimate by 1.3%.The fourth-quarter revenue compares to our estimate of $288 million.Per management, the overall top line was driven by 7% growth in U.S. sales and 3% growth in international sales. Strong performance by the Cardiovascular segment and the majority of its product categories also contributed to the top line.CER, organic revenues inched up 8.2% year over year primarily on the back of a more favorable-than-anticipated international sales trend, particularly in the EMEA region, and demand in the United States, that was in line with the growth expectations Merit Medical had outlined in its third-quarter call.Full-year revenues were $1.15 billion, reflecting a 7.1% improvement from the comparable 2021 period. CER, organic revenues increased by 9.3%.Our projection of full-year reported revenues was $1.15 billion, which matched the company-reported figures.Segmental DetailsMerit Medical operates through two segments — Cardiovascular and Endoscopy.The Cardiovascular unit reported fourth-quarter revenues of $285.7 million, up 5.7% year over year on a reported basis. CER, organic revenues inched up 8.7% year over year.This figure compares to our segmental projection of $280 million for the fourth quarter.The Cardiovascular segment includes the following product categories: PI, CI, CPS and OEM.On a reported basis, PI product line revenues were $112.4 million, up 6.5% year over year, whereas CI revenues rose 6% to $85.3 million. OEM revenues climbed 15% to $38.9 million, whereas CPS revenues declined 2.6% to $49.1 million, both on a reported basis.This compares to our projections of $110.1 million, $83.4 million, $36.7 million and $49.8 million, respectively.Endoscopy devices’ revenues totaled $7.7 million, down 6.3% year over year. CER, organic revenues also declined 5.5% year over year.This figure compares to our segmental projection of $8 million for the fourth quarter.MarginsIn the quarter under review, Merit Medical’s gross profit rose 4.5% to $134.6 million. However, the gross margin contracted 39 basis points (bps) to 45.9%.We had projected 47.6% of gross margin for the fourth quarter.Selling, general & administrative expenses rose 8.6% to $83.2 million. Research and development expenses inched up 0.1% year over year to $20.4 million. Adjusted operating expenses of $103.7 million increased 6.8% year over year.Adjusted operating profit totaled $30.9 million, reflecting a 2.8% decline from the prior-year quarter. Adjusted operating margin in the fourth quarter contracted by 89 bps to 10.5%.Financial PositionMerit Medical exited the full-year 2022 with cash and cash equivalents of $58.4 million compared with $67.8 million at the end of 2021. Total debt (including the current portion) at the end of full-year 2022 was $198 million compared with $242.8 million at the end of 2021.Cumulative net cash flow from operating activities at the end of 2022 was $114.3 million compared with $147.2 million a year ago.2023 GuidanceMerit Medical has issued its 2023 outlook.Net revenues for 2023 are projected to be between $1.194 billion and $1.210 billion, reflecting an increase of approximately 4-5% over the comparable reported figures of 2022. The Zacks Consensus Estimate for the same is pegged at $1.20 billion.Net revenues from the cardiovascular segment are expected to be in the range of $1.156 billion-$1.172 billion, representing an increase of approximately 3-5% over the comparable reported figures of 2022.The endoscopy segment’s net revenues are projected to be between $37.5 million and $37.8 million, representing an increase of approximately 14-16% over the comparable reported figures of 2022.Adjusted earnings per share for 2023 are projected to be within $2.80-$2.89. The Zacks Consensus Estimate for the same stands at $2.82.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.VGM ScoresCurrently, Merit Medical has a nice Growth Score of B, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Merit Medical has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Performance of an Industry PlayerMerit Medical is part of the Zacks Medical - Dental Supplies industry. Over the past month, West Pharmaceutical Services (WST), a stock from the same industry, has gained 6.4%. The company reported its results for the quarter ended December 2022 more than a month ago.West Pharmaceutical reported revenues of $708.7 million in the last reported quarter, representing a year-over-year change of -3%. EPS of $1.77 for the same period compares with $2.04 a year ago.West Pharmaceutical is expected to post earnings of $1.65 per share for the current quarter, representing a year-over-year change of -28.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.6%.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for West Pharmaceutical. Also, the stock has a VGM Score of C. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Merit Medical Systems, Inc. (MMSI): Free Stock Analysis Report West Pharmaceutical Services, Inc. (WST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Accenture (ACN) and Adobe are developing services that improve content creation and delivery, enabling marketers to cut costs and increase efficiency. Accenture plc ACN shares have gained 4.2% in the past six months compared with 7.1% rise of the industry it belongs to.The company recently formed a partnership with Adobe ADBE on content supply-chain technology.Accenture PLC Price  Accenture PLC price | Accenture PLC QuoteEnhanced Content Delivery, Marketing in FocusAnnounced at the Adobe Summit 2023, the collaboration focuses on integrating Accenture’s expertise in process improvement, change management and marketing with Adobe’s portfolio of creative and experience applications and integrations to assess the content landscape. Services developed by this partnership improve content creation and delivery, enabling marketers to cut costs and increase efficiency, while enhancing personalized customer experiences.Accenture is helping Adobe transform its marketing operations by assisting Adobe’s B2B marketing organization scale the delivery of personalized marketing campaigns using Adobe Real-Time CDP.According to Jim LaLonde, Accenture, Adobe Business Group lead, "Leveraging Adobe technology and Accenture services, our new services bring together the people, tools and workstreams needed for our clients to effectively plan, create, manage and deliver content across industries and around the globe."Adobe shares have gained 34.4% in the past six months, outperforming the 20.8% rally of the industry it belongs to.Adobe Inc. Price  Adobe Inc. price | Adobe Inc. QuoteZacks Rank and Stocks to ConsiderAccenture and Adobe both carry a Zacks Rank #3 (Hold).Here are some better-ranked stocks from the broader Zacks Business Services sector that investors can consider.Omnicom Group's OMC internal development initiatives and shareholder-friendly policies ensure long-term profitability. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.40, which has been revised downward 1.4% in the past 60 days. For first-quarter 2023, OMC’s earnings are expected to grow slightly from the year-ago reported figure to $1.40. The company has beaten the Zacks Consensus Estimate in the four trailing quarters, with an average surprise of 8%. OMC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.ICF International ICFI is being aided by the strong government business, courtesy of improvement in the business development pipeline and win rate. The Zacks Consensus Estimate for the company’s first-quarter 2023 earnings is pegged at $1.41, which has been revised upward 6% in the past 60 days. For first-quarter 2023, ICFI’s earnings are expected to register 7.6% growth on a year-over-year basis. The company has beaten the Zacks Consensus Estimate in the four trailing quarters, with an average surprise of 9.2%. ICFI currently sports a Zacks Rank of 1. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Accenture PLC (ACN): Free Stock Analysis Report Omnicom Group Inc. (OMC): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report ICF International, Inc. (ICFI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Skechers (SKX) is gaining on solid direct-to-consumer sales and Comfort Technology footwear. Its international business also appears encouraging. Skechers U.S.A., Inc. SKX appears encouraging on the back of robust business strategies. The company remains focused on boosting its omni-channel capabilities by expanding its direct-to-consumer (DTC) business and enhancing its foothold internationally. SKX has been gaining from growth in its domestic and international channels for a while now. Continued global demand for its Comfort Technology footwear is steadily driving results.This footwear leader has appreciated 34.9% in the past six months, outperforming the industry’s 24.7% growth. Moreover, the Zacks Consensus Estimate for Skechers’ 2023 sales and earnings per share (EPS) is currently pegged at $7.92 billion and $2.95 each, suggesting respective growth of 6.4% and 24% from the corresponding year-ago reported figures. For 2024, the Zacks Consensus Estimate for sales and EPS stands at $8.80 billion and $3.66 each, indicating corresponding increases of 11.1% and 24.2% from the prior-year reported numbers. This reflects the analysts’ optimism about the stock.Let’s Delve DeeperSkechers has been making strategic investments to improve the infrastructure worldwide, primarily e-commerce platforms and distribution centers. The company is focused on designing and developing new products. Going ahead, SKX plans to introduce more innovative and comfortable technology products, build multi-platform marketing campaigns and launch more e-commerce sites around the world.Image Source: Zacks Investment ResearchSkechers has been directing resources to enhance its digital capabilities, including augmenting website features, mobile applications and a loyalty program. Investments made to integrate store and digital ecosystems for developing a seamless omnichannel experience are likely to drive greater sales. The company has updated its point-of-sale systems to better engage with customers, both offline and online. Initiatives such as “Buy Online, Pick-Up in Store” and “Buy Online, Pickup at Curbside” are worth mentioning.During the fourth quarter of 2022, Skechers’ DTC sales grew 10.8% year over year to $829.6 million. This is backed by 30% growth domestically with a triple-digit increase in e-commerce and a double-digit increase in retail stores. Both these channels gained from solid inventory levels. International DTC sales were flat year over year owing to a decline in China. However, excluding China, sales rose 22% on double-digit increases across the company’s stores and online. DTC sales jumped on growth of 27% in AMER and 19.1% in EMEA. DTC volumes also jumped 14.8% year over year.Furthermore, Skechers’ international business remains a significant sales growth driver for the company. SKX is poised to enhance its global reach in the footwear market through its distribution networks, subsidiaries and joint ventures. In fourth-quarter 2022, international sales increased 8.7% year over year. Region-wise, sales increased 22.5% year over year to $925.6 million in the Americas and 28.9% to $413.7 million in EMEA.Wrapping up, Skechers is likely to continue performing well on the back of such sturdy endeavors. The company’s 2023 outlook reflects sales momentum across most of the company’s international markets throughout the year. A China market recovery with a steady improvement in the course of the year, better distribution operating efficiency on enhanced capacity and remediation endeavors are tailwinds.Also, the gross margin is likely to benefit from lower logistics costs mainly in freight. For 2023, management believes in accomplishing sales between $7.75 billion and $8 billion and earnings per share between $2.80 and $3.00. A VGM Score of B further speaks volumes for this Zacks Rank #3 (Hold) stock.Eye These Solid PicksHere we have highlighted three top-ranked stocks, namely, Ralph Lauren RL, Oxford Industries OXM and Deckers DECK.Ralph Lauren, a footwear and accessories dealer, has a Zacks Rank #1 (Strong Buy) at present. RL has a trailing four-quarter earnings surprise of 23.6%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales and EPS suggests growth of 5.5% and 14%, respectively, from the year-ago corresponding figures.Oxford Industries, which designs, sources, markets and distributes lifestyle products and other brands, carries a Zacks Rank #2 (Buy). Oxford Industries has a trailing four-quarter earnings surprise of 18.9%, on average.The Zacks Consensus Estimate for OXM’s current financial-year sales and EPS suggests growth of 13.7% and 10.4% from the year-ago reported numbers.Deckers, a footwear dealer, has a Zacks Rank of 2 at present. DECK has a trailing four-quarter earnings surprise of 31%, on average.The Zacks Consensus Estimate for Deckers’ current financial-year sales and EPS suggests growth of 11% and 17.1%, respectively, from the year-ago corresponding figures. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Skechers U.S.A., Inc. (SKX): Free Stock Analysis Report Deckers Outdoor Corporation (DECK): Free Stock Analysis Report Ralph Lauren Corporation (RL): Free Stock Analysis Report Oxford Industries, Inc. (OXM): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Burlington Stores (BURL) is aiding on successful execution of its 2.0 strategy and its Full Potential plan for growth. Its store-growth efforts are also appreciated. Burlington Stores, Inc. BURL stock seems well positioned for growth owing to the successful execution of its Burlington 2.0 strategy and its store-growth efforts. The main objective of the 2.0 initiative is to significantly improve the execution of the off-price model and offer great value to consumers. The company has also been progressing well in its store-expansion efforts for a while now.Moving forward, the consensus mark for BURL’s fiscal 2023 earnings per share of $6.11 suggests a year-over-year growth of 43.4%. The consensus estimate for the next fiscal year’s sales of $9.86 billion mirrors a 13.3% rise from the last fiscal year.Detailing Growth EffortsTo drive top-line growth, Burlington Stores is focused on store expansion. The company’s store-related efforts, including smaller store prototypes, have been on track. Management  stated earlier that it has the potential to expand the store base to 2,000 stores.During the fourth quarter of fiscal 2022, BURL inaugurated 34 net stores, taking the total store base to 927. This comprised 39 store openings, five relocations and no closings. For fiscal 2023, the company expects to open 70 to 80 net new stores. BURL believes that it can grow its new store program and help it to open 500 to 600 net new stores in the following five years.Image Source: Zacks Investment ResearchMoving to the 2.0 initiative, Burlington Stores focuses on offering great customer value by effectively managing liquidity, chasing sales, buying opportunistically and having more operational flexibility. Under the operational aspect, it wants to achieve more flexibility via a faster and more responsive supply chain and a more flexible store staffing model. This initiative is expected to drive the company’s top line and operating margin growth.Additionally, Burlington Stores has made multiple changes to its business model to adapt to the ongoing changes in the industry. The company’s off-price model is helping customers to get nationally branded, fashionable, high-quality as well as right-priced products.Management also believes that it still has a significant opportunity to drive growth, improve profitability and achieve its off-price Full Potential plan. BURL remains optimistic about the outlook for fiscal 2023 and expects both the top line and bottom line to grow year over year. For fiscal 2023, the company expects total sales to increase in the range of 12% to 14%, which includes 2% from the 53rd week and adjusted earnings per share in the bracket of $5.50-$6.00, up from $4.26 recorded in the year-ago period.Wrapping UpBurlington has been facing higher supply chain expenses and competitive pressures for a while now. The company expects to incur $560 million in capital expenditures net of landlord allowances in fiscal 2023.Nevertheless, the upsides mentioned above will likely help Burlington to battle such hurdles.Shares of this Zacks Rank #3 (Hold) company have rallied 77.5%, outperforming the industry’s 6.6% growth over the past six months.3 Key PicksSome top-ranked stocks are Inter Parfums IPAR, The Kroger Co. KR and Deckers Outdoor Corporation DECK.IPAR has an expected long-term earnings growth rate of 15% and a trailing four-quarter earnings surprise of 36.2%, on average. Inter Parfums currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Inter Parfums’ current financial year sales suggests growth of 10.8% from the year-ago reported numbers.The Kroger Co. operates in the thin-margin grocery industry. It currently carries a Zacks Rank of 2 (Buy). KR has a trailing four-quarter earnings surprise of 9.8%, on average.The Zacks Consensus Estimate for Kroger’s current financial year sales and earnings suggests growth of 2.5% and 6.2%, respectively, from the prior-year reported numbers.Deckers Outdoor, a leading designer, producer and brand manager of innovative, niche footwear, currently carries a Zacks Rank of 2. DECK has a trailing four-quarter earnings surprise of 31%, on average.The Zacks Consensus Estimate for Deckers’ current financial year sales and earnings suggests growth of 12.2% and 13.6%, respectively, from the corresponding year-ago reported figures. 4 Oil Stocks with Massive Upsides Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."  Zacks Investment Research has just released an urgent special report to help you bank on this trend.  In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. Download your free report now to see them.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK): Free Stock Analysis Report The Kroger Co. (KR): Free Stock Analysis Report Inter Parfums, Inc. (IPAR): Free Stock Analysis Report Burlington Stores, Inc. (BURL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Darden's (DRI) fiscal third-quarter performance benefits from solid same-restaurant sales and traffic growth. Also, the emphasis on pricing initiatives added to the positives. Darden Restaurants, Inc. DRI reported third-quarter fiscal 2023 results, with earnings and revenues beating the Zacks Consensus Estimate. The metrics increased on a year-over-year basis.Darden president & CEO Rick Cardenas, stated, "I'm proud that we significantly exceeded the industry for both same-restaurant sales and traffic this quarter, outperforming even more on traffic than on sales. Our ability to invest in pricing below inflation over time provides strong value to our guests and reinforces the power of our strategy and our restaurant teams' commitment to being brilliant with the basics."Earnings & RevenuesDuring the fiscal third quarter, Darden reported adjusted earnings per share (EPS) of $2.34, beating the Zacks Consensus Estimate of $2.24. In the prior-year quarter, DRI reported an adjusted EPS of $1.93.Darden Restaurants, Inc. Price, Consensus and EPS Surprise  Darden Restaurants, Inc. price-consensus-eps-surprise-chart | Darden Restaurants, Inc. Quote Total sales during the quarter came in at $2,786.2 million, beating the consensus mark of $2,723 million. Sales increased 13.8% from the prior-year quarter’s level on solid blended same-restaurant sales of 11.7%. The opening of 35 net new restaurants added to the positives.Sales by SegmentsDarden reports business under four segments, Olive Garden, LongHorn Steakhouse, Fine Dining, which includes The Capital Grille and Eddie V's and Other Business.During the fiscal third quarter, sales at Olive Garden increased 13.9% year over year to $1,301.2 million. Comps in the segment rose 12.3% year over year compared with a 7.6% growth reported in the previous quarter.At LongHorn Steakhouse, sales were up 13.5% year over year to $695.5 million. Comps in the segment climbed 10.8% year over year compared with a 7.3% growth reported in the previous quarter.Sales in Fine Dining soared 13.2% year over year to $235.6 million. Comps in the segment increased 11.7% year over year compared with a 5.9% growth reported in the previous quarter.Sales at Other Business rose 14.1% year over year to $553.9 million. Comps in the Other Business rose 11.7% year over year compared with a 7.1% increase reported in the previous quarter.Operating HighlightsIn the fiscal third quarter, total operating costs and expenses increased 13.4% year over year to $2,436.3 million. This escalation was primarily due to a rise in food and beverage costs, restaurant expenses and labor costs.Balance SheetAs of Feb 26, 2023, cash and cash equivalents came in at $275.3 million compared with $240.7 million as of Nov 27, 2022.Inventories during the fiscal third quarter came in at $305.9 million compared with $296.1 in the previous quarter. Long-term debt as of Feb 26, 2022, was $880.9 million compared with $885.8 million as of Nov 27, 2022.During the fiscal third quarter, Darden’s board of directors repurchased approximately 0.9 million shares of its common stock worth approximately $124 million. As of Feb 26, the company stated the availability of approximately $687 million under the $1 billion repurchase program.Meanwhile, the company declared a quarterly cash dividend of $1.21 per share. The dividend will be payable on May 1, 2023, to shareholders of record as of Apr 10, 2023.Fiscal 2023 OutlookFor fiscal 2023, the company expects sales to be approximately $10.45-$10.5 billion compared with the previous projection of $10.3-$10.45 billion. Same-restaurant sales in fiscal 2023 are anticipated to be 6.5-7% compared with the previous expectation of 5-6.5%. EPS from continuing operations are anticipated in the band of $7.85-$8 compared with the previous guidance of $7.60-$8. Its mid-point of $7.9 is higher than the Zacks Consensus Estimate of $7.85.The company expects to open 55 net new restaurants and projects total capital spending of $550-$575 million in fiscal 2023.Zacks Rank & Other Key PicksDarden currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Some other top-ranked stocks in the same space include Chuy's Holdings, Inc. CHUY, Arcos Dorados Holdings Inc. ARCO and Bloomin' Brands, Inc. BLMN.Chuy’s Holdings currently sports a Zacks Rank #1. CHUY has a trailing four-quarter earnings surprise of 19.1%, on average. Shares of CHUY have increased 30.1% in the past year.The Zacks Consensus Estimate for Chuy’s Holdings 2023 sales and EPS suggests growth of 10.8% and 19%, respectively, from the corresponding year-ago period’s levels.Arcos Dorados currently sports a Zacks Rank #1. ARCO has a long-term earnings growth of 7.8%. Shares of the company have declined 0.7% in the past year.The Zacks Consensus Estimate for Arcos Dorados’ 2024 sales and EPS suggests growth of 8% and 11.4%, respectively, from the year-ago period’s levels.Bloomin' Brands currently sports a Zacks Rank #1. BLMN has a long-term earnings growth rate of 12.3%. The stock has gained 23.2% in the past year.  The Zacks Consensus Estimate for Bloomin' Brands 2024 sales and EPS suggests growth of 2.1% and 4.4%, respectively, from the year-ago period’s reported levels. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Darden Restaurants, Inc. (DRI): Free Stock Analysis Report Bloomin' Brands, Inc. (BLMN): Free Stock Analysis Report Chuy's Holdings, Inc. (CHUY): Free Stock Analysis Report Arcos Dorados Holdings Inc. (ARCO): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Macy's (M) has been strengthening its omnichannel capabilities with investments in data and analytics. It is constantly making moves to offer a seamless customer experience. Macy's, Inc. M has been making smart moves to enrich the customer experience. Management has undertaken initiatives to gain market share, better engage with customers and maintain a decent financial profile. The company is ramping up digital capabilities to provide better digital experiences and its Polaris strategy also holds promise.Markedly, shares of this key omnichannel retailer have jumped 18.3% over the past six months, outperforming the industry’s 9.3% gain. Additionally, analysts look optimistic about the company’s potential. The Zacks Consensus Estimate for fiscal 2024 sales and earnings per share (EPS) currently stands at $24.3 billion and $3.89, respectively. These estimates show year-over-year growth of 0.4% and 2.4%, respectively.Let’s Delve DeeperMacy’s is on track to strengthen its omnichannel capabilities with investments in online shopping experiences, data and analytics, technology infrastructure as well as better fulfillment capabilities. The company expanded its omnichannel offerings such as curbside, store pickup and same-day delivery which bode well.During the fourth quarter of fiscal 2022, approximately 68% of digital sales came from mobile devices. Stores fulfilled 33% of digital sales in the quarter. Digital penetration was 37%, 40% and 23%, respectively, at Macy’s, Bloomingdale’s and Bluemercury brands during the quarter under discussion. Digital sales are likely to be roughly 32-34% of net sales for fiscal 2023.Image Source: Zacks Investment ResearchMacy’s collaboration with the Swedish buy now, pay later group Klarna, is enabling the company to offer shoppers financial ease and payment flexibility with their online purchases. Here, shoppers can choose to pay in four equal and interest-free installments at the online checkout.The company’s tie-up with DoorDash for expediting delivery services is also encouraging. Markedly, a redesigned mobile app, live shopping functionality and addition of payment options such as Apple Pay, Klarna Express Checkout, PayPal and Venmo have been making shopping easier for customers.Macy’s has also launched a digital marketplace, featuring a collection of new brands, products and categories from third-party sellers. Also, Market by Macy's initiative plays an important role in the company’s omnichannel market ecosystem. To power the platform, Macy’s has partnered with Mirakl — a leading enterprise marketplace technology company.Selected third-party merchants will sell products on macys.com and bloomingdales.com. In fiscal 2022, Macy’s had launched Own Your Style, an omnichannel brand platform, which allows customers to celebrate their personal style.  The company is also focused on off-mall smaller format stores, which play an important role in boosting the omnichannel ecosystem.In fiscal 2023, management intends to open four Market by Macy’s and one Bloomie’s. Management said that if these locations will outperform, then it will incrementally accelerate off-mall openings starting fiscal 2024. It intends to add 2,000 brands to Macy’s marketplace this year and launch Bloomingdale’s marketplace in the back half.In addition, Macy's Polaris Strategy to adapt better to the evolving retail ecosystem bodes well. This strategy includes strengthening customer relationships, expansion of assortments, accelerating digital growth, optimizing the store portfolio and reducing costs. Moreover, the company’s expanded Star Rewards Loyalty program has been aiding better customer engagement.Wrapping up, the stock is likely to register growth on the bourses given the aforementioned strengths. An expected long-term earnings growth rate of 12% coupled with a VGM Score of A further speaks volumes for this Zacks Rank #3 (Hold) stock.Key Picks in RetailWe have highlighted three top-ranked stocks, namely Abercrombie & Fitch ANF, American Eagle Outfitters AEO and Boot Barn BOOT.Abercrombie & Fitch, a leading casual apparel retailer, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales and EPS suggests growth of 1.6% and 33.1%, respectively, from the year-ago reported figures. ANF delivered a negative earnings surprise of 141.3% in the last reported quarter.American Eagle Outfitters, a retailer of casual apparel, accessories and footwear, currently carries a Zacks Rank #2 (Buy). AEO delivered an earnings surprise of 23.3% in the last reported quarter.The Zacks Consensus Estimate for American Eagle Outfitters’ current financial-year sales and EPS suggests growth of 3.4% and 3.2%, respectively, from the year-ago reported figures.Boot Barn, a fashion retailer of apparel and accessories, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 8.7%, on average.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and EPS suggests growth of 8.2% and 9.1%, respectively, from the year-ago reported figures. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Macy's, Inc. (M): Free Stock Analysis Report Abercrombie & Fitch Company (ANF): Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO): Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Futures Tumble, Treasuries And Rate Cut Odds Soar Amid Panic That Deutsche Bank Is The Next To Go Yesterday, while attention was still focused on the US banking system and the ongoing botched response by the Fed and especially the Treasury's senile Secretary, who more than two weeks after SIVB collapsed, have still not been able to stabilize confidence in banks - thereby assuring the US is about to slam head first into a brutal recession, just as Biden ordered to contain inflation, as US consumer spending is now in freefall - we pointed out that something bad was taking place in Europe: the credit default swaps of perpetually semi-solvent banking giant Deutsche Bank were quietly blowing out to multi-year highs. oh... pic.twitter.com/vNXc8ZE3Nm — zerohedge (@zerohedge) March 23, 2023 Well, we didn't have long to wait before everyone else also noticed and this morning it's official: the crisis has shifted to Germany's and Europe's largest TBTF bank, with even Bloomberg now writing that Deutsche Bank "has become the latest focus of the banking turmoil in Europe as ongoing concern about the industry sent its shares slumping the most in three years and the cost of insuring against default rising." The bank - which has staged a recovery in recent years after a series of crises that nearly brought it down - said Friday it will redeem a tier 2 subordinated bond early. And while such moves are usually intended to give investors confidence in the strength of the balance sheet, though the share price reaction suggests the message isn’t getting through, and the stock plunged 13% in German trading... ... while DB's CDS has exploded to level surpassing the bank's near-collapse in 2016, and is about to take out the covid wides. “It is a clear case of the market selling first and asking questions later,” said Paul de la Baume, senior market strategist at FlowBank SA. “Traders do not have the risk appetite to hold positions through the weekend, given the banking risk and what happened last week with Credit Suisse and regulators.” It wasn't just Deutsche Bank: UBS Group AG shares also dropped as Bloomberg reported that it’s one of the banks under scrutiny in a US Justice Department probe into whether finncial professionals helped Russian oligarchs evade sanctions, according to people familiar with the matter. In any case, the sudden, violent spike in DB default risk which quickly carried over to all big European banks, and which will not reverse until first the ECB then the Fed both cut rates... ... sent broader risk sentiment reeling with S&P 500 futures at session lows, sliding 1% to 3940. While there was no one big story setting off these moves. It could be a rush to havens heading into the weekend as traders wait for another shoe to drop — which has been a theme during recent weekends. In any case, the latest global equity rout and bank crisis which is now spreading to TBTF banks has sent bond yields crashing with the 2-year US yield plumbing new session lows, breaking down as low as 3.55%, and the resulting shockwave has collapsed odds of another rate hike in May to just 28% while the odds of a rate cut in June have exploded to 83% as the Fed's pivot finally arrives just on time: with the Fed having again broken the global financial system. In premarket trading, First Republic Bank swung between gains and losses as investors digested Treasury Secretary Janet Yellen’s comments about regulators being prepared to take additional steps to guard bank deposits if warranted. Fellow regional banks and bigger lenders decline, and after a volatile session on Thursday took the stock’s March slump to 90%. Block fell another 5%, extending Thursday’s 15% plunge as it announced potential legal action against short seller Hindenburg Research for its report on the payment processor.  Here are some other notable premarket movers: US cryptocurrency-exposed stocks decline, taking a pause from recent gains as the price of Bitcoin falls amid broader risk-off sentiment. Marathon Digital (MARA US) slid 0.9%, Hut 8 Mining Corp (HUT US) -1%, Coinbase (COIN US) -1.9%, Riot Platforms (RIOT US) -1.4%. ReNew Energy Global gains 12% after Bloomberg reported, citing people familiar with the matter, that the Canada Pension Plan Investment Board is exploring buying the shares of the power producer that it doesn’t already own and taking the Nasdaq- listed firm private. Joann slumped 6.2% in extended trading on Thursday after the fabric and crafts retailer reported adjusted earnings per share and Ebitda that missed the average analyst estimates, even as sales topped expectations. Oxford Industries fell 5.5% in postmarket trading after the owner of Tommy Bahama and Lilly Pulitzer issued a forecast for net sales in the current quarter that trailed the average analyst estimate at the midpoint of the guidance range. “Confidence is fragile, market volatility is likely to stay high, and policymakers may have to go further to make sure faith in the global financial system stays solid,” said Mark Haefele, chief investment officer at UBS Wealth Management. “Financial conditions are also likely to tighten, which increases the risk of a hard landing for the economy, even if central banks ease off on interest-rate hikes.” “Credit and stock markets too greedy for rate cuts, not fearful enough of recession,” a team led by Michael Hartnett wrote in a note. The strategist, who was correctly bearish through last year, said investment-grade spreads and stocks will be taking a hit over the next three to six months. Global cash funds had inflows of nearly $143 billion, the largest since March 2020 in the week through Wednesday — adding up to more than $300 billion over the past four weeks, according to the note citing EPFR Global data. European stocks are also plumbing lower, with European bank stocks sliding for a third day, and erasing weekly and yearly gains, as sentiment remains fragile on the sector. Deutsche Bank slumped nearly 15% as credit-default swaps surged amid wider concerns about the stability of the banking sector. The Stoxx 600 Banks Index is 5.3% lower as of 11:20am in London, erasing earlier weekly gains; the index is now -2.8% YTD. Meanwhile, UBS, which is not in the banking sector index, slumped as much as 8.4% as Jefferies cut its rating to hold from buy and it was among the banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions. European oil stocks are also underperforming on Friday, dragging down the regional benchmark, as crude prices slump under pressure from a stronger dollar and concerns about the impact on growth of a fresh bout of stress facing the banking sector. The Energy sub-index slid as much as 4.3%, the most since March 15, while the Stoxx Europe 600 benchmark fell about 2%. Here are some other notable European movers: Casino Guichard-Perrachon SA fell as much as 6% to a fresh record low after Moody’s cut its long-term debt rating on the company further into junk territory Dino Polska drops as much as 5%, after its 4Q report showed that the Polish food supermarket chain is unable to maintain profitability amid inflation pressures Smiths Group gains as much as 2.1%, after the industrial firm beat expectations on Ebita, while also surpassing projections on its full-year sales outlook JD Wetherspoon jumps as much as 9.3% after the British pub operator posted a revenue beat for 1H, with Jefferies analysts noting resilience in like-for-like sales Earlier in the session, Asia equities were set to snap a three-day rally as lingering concerns over the health of the banking sector pushed a gauge of the region’s financial shares lower. The MSCI Asia Pacific Index fell as much as 0.5% before trimming losses, with its 11 sectoral sub-gauges showing mixed moves. Most markets declined, led by Hong Kong’s Hang Seng Index, while Chinese tech shares extended their rally on the back of positive earnings.  An index of Asian financial stocks dropped as much as 0.9%, tracking overnight declines in a measure of US financial heavyweights to the lowest since November 2020. Treasury Secretary Janet Yellen’s comments that authorities can take further steps to protect the banking system if needed failed to fully assuage concerns.  “The unease in the financial space will continue to weigh on the Asian financial sectors,” said Hebe Chen, an analyst at IG Markets Ltd. “The flip-flop in the market this week is seeing overwhelmed investors scratching their heads in the face of the mixed bag from Fed.”  Even with Friday’s lackluster moves, the MSCI Asia benchmark was set to notch its best weekly performance in about two months. The shares rose earlier in the week thanks to assurances from regulators in the US and Europe over protecting the banking sector and the Federal Reserve’s dovish tilt.   Meanwhile, a gauge of tech stocks in Hong Kong advanced for the fourth day close at its highest in a month. Lenovo led the gain, with JPMorgan lifting its recommendation on a bottoming of PC demand. “We like the internet sector, especially within China right now,” Marcella Chow, JPMorgan Asset Management’s global market strategist, said in an interview with Bloomberg TV. “China tech sector is attractive given improving regulatory outlook, leaner and more cost effective cost structure, improving margin.”  Japanese stocks Inched lower as worries linger over the financial sector while investors assess statements made by US Treasury Secretary Janet Yellen. The Topix Index fell 0.1% to 1,955.32 as of market close Tokyo time, while the Nikkei declined 0.1% to 27,385.25. Mitsubishi UFJ Financial Group Inc. contributed the most to the Topix Index decline, decreasing 1.1%. Out of 2,159 stocks in the index, 976 rose and 1,039 fell, while 144 were unchanged. “Assuming that the fallout from the US financial sector woes doesn’t spread significantly, Japanese stocks will likely stop its decline and pick up as the earnings period starts next month,” said Takeru Ogihara, a chief strategist at Asset Management One Australian stocks slumped to post a seventh week of losses; the S&P/ASX 200 index fell 0.2% to close at 6,955.20, with financials the biggest drag, as the malaise hanging over the global banking sector continued to damp sentiment. The benchmark erased 0.6% for the week, the seventh straight decline, maintaining the longest losing streak since 2008.  In New Zealand, the S&P/NZX 50 index fell 0.1% to 11,580.82. Indian stocks declined for a third straight week in the longest losing streak since December spurred by a late selloff in key gauges amid risk-off sentiment in global equities. The Nifty 50 index ended just shy of entering a so-called technical correction given the index’s near 10% drop from its December peak. For the week, the Nifty 50 fell 0.9% while the Sensex declined 0.8%. The S&P BSE Sensex fell 0.7% to 57,527.10 as of 3:30 p.m. in Mumbai, while the NSE Nifty 50 Index declined 0.8% to 16,945.05.  The selloff in small and mid cap counters contributed to the broader losses, with the Nifty Mid cap 100 and Nifty Small Cap 100 indexes ending nearly 2% lower each. Stocks of asset management companies were hammered after the government dropped the benefit of long-term capital gains tax for debt mutual funds in order to ensure parity in tax treatment with other such products. Shares of HDFC AMC dropped 4.1%, Aditya Birla AMC -2%, UTI AMC -4.8% and Nippon Life India AMC -1.2%. Reliance Industries contributed the most to the index decline, decreasing 2%. Out of 30 shares in the Sensex index, six rose and 24 fell In FX, the dollar’s recent weakness, which had supported the outlook for the region’s currencies and other assets, also took a breather on Friday. The Bloomberg dollar index rose 0.3% after a six-day run of declines. The yen rallies to the highest in six weeks amid demand for haven assets due to concerns over the health of the global banking sector. The yen was the biggest gainer versus the greenback among the Group-of-10 currencies. Treasury yields continued to decline reflecting expectations for Federal Reserve rate cuts this year “JPY’s strong performance we believe is driven by the return of its safe haven appeal, especially given that we see that Japanese banks are in a relatively better standing,” said Alan Lau, a strategist at Malayan Banking Bhd in Singapore. “Falling UST yields have also given the JPY support recently. Overall, we are positive on the yen and see the spot being on a downward trend this year with our year-end forecast at 122” In rates, Treasuries front-end adds to Thursday’s gains, with 2-year yields richer by over 20bp on the day, as the yield continues to plumb new session lows, breaking as low as 3.55%, dropping below th 2023 lows, and steepening the curve as traders continue to price out rate-hike premium for the May meeting and start pricing for cuts as early as June. Yields were near lows of the day while rest of the curve is richer by 17bp across belly to 9bp out to long-end; front-end led gains steepens 2s10s, 5s30s by 10bp and 8bp on the day. SOFR white-pack futures surge higher, with gains led by Dec23 contract which rallied 27bp vs. Thursday close; Fed-dated OIS shows just 4bp of rate hike premium for the May policy meeting with almost a full cut then priced into the June policy meeting — around 120bp of rate hikes are then priced into year-end In commodities, oil slipped the most in over a week, with Brent below $75, tracking a slide in equity markets and feeling the effects of a stronger dollar. Aluminum and copper headed toward their biggest weekly gains in more than two months on increasing demand in China and bets on looser Federal Reserve policy. Uranium Energy is among the most active resources stocks in premarket trading, falling about 9%. Gold traded just shy of $2000 and is about to break solidly higher. To the day ahead now, and data releases include the March flash PMIs from Europe and the US, along with UK retail sales for February, and the preliminary US durable goods orders for February. Otherwise from central banks, we’ll hear from the ECB’s De Cos, Nagel and Centeno, the Fed’s Bullard and the BoE’s Mann.   Market Snapshot S&P 500 futures down 1% to 3,940 MXAP down 0.2% to 160.13 MXAPJ down 0.5% to 515.46 Nikkei down 0.1% to 27,385.25 Topix down 0.1% to 1,955.32 Hang Seng Index down 0.7% to 19,915.68 Shanghai Composite down 0.6% to 3,265.65 Sensex down 0.2% to 57,801.12 Australia S&P/ASX 200 down 0.2% to 6,955.24 Kospi down 0.4% to 2,414.96 STOXX Europe 600 down 0.7% to 443.10 German 10Y yield little changed at 2.11% Euro down 0.4% to $1.0791 Brent Futures down 0.6% to $75.46/bbl Gold spot down 0.3% to $1,987.17 U.S. Dollar Index up 0.30% to 102.84 Top Overnight News A Federal Reserve facility that gives foreign central banks access to dollar funding was tapped for a record $60 billion in the week through March 22: BBG Deutsche Bank AG was at the center of another selloff in financial shares heading into the weekend: BBG Credit Suisse Group AG and UBS Group AG are among banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions, according to people familiar with the matter: BBG Japan’s headline national CPI for Feb cools to +3.3% (down from +4.3% in Jan and inline w/the St) while core ticks higher to +3.5% (up from +3.2% in Jan and ahead of the St’s +3.4% forecast). RTRS Copper prices will surge to a record high this year as a rebound in Chinese demand risks depleting already low stockpiles, the world’s largest private metals trader has forecast. Global inventories of the metal used in everything from power cables and electric cars to buildings have dropped rapidly in recent weeks to their lowest seasonal level since 2008, leaving little buffer if demand in China continues to pace ahead. FT Authorities this week raided the Beijing offices of Mintz Group, detaining all five of the New York-based due diligence firm’s staff members in mainland China, the company said—an incident likely to unnerve global businesses operating in the country. WSJ China’s top diplomat Wang Yi urged Europe to play a role in supporting peace talks for Russia’s war in Ukraine, though the US has warned Beijing’s proposals would effectively freeze the Kremlin’s territorial gains. BBG Ukrainian troops, on the defensive for months, will soon counterattack as Russia's offensive looks to be faltering, a commander said, but President Volodymyr Zelenskiy warned that without a faster supply of arms the war could last years. RTRS Europe’s flash PMIs for March were mixed, with upside on services (55.6, up from 52.7 in Feb and ahead of the St’s 52.5 forecast) but downside on manufacturing (47.1, down from 48.5 in Feb and below the St’s 49 forecast). “Inflationary pressures have continued to moderate, with input prices falling sharply in manufacturing… overall input costs rose at the slowest rate since March 2021…the record easing of supply constraints marks a major reversal from the record delays seen during the pandemic” S&P Deutsche Bank was at the center of another selloff in financials. The bank tumbled 11% in Frankfurt and default-swaps on its euro, senior debt surged to the highest since they were introduced in 2019, when Germany revamped its debt framework to introduce senior preferred notes. Other banks with high exposure to corporate lending also declined. Commerzbank slid 9% and Soc Gen 7%.  BBG The Swiss authorities and UBS Group AG are racing to close the takeover of Credit Suisse Group AG within as little as a month, according to two sources with knowledge of the plans, to try to retain the lender's clients and employees. RTRS Citizens Financial is set to submit a bid for SVB's private banking arm, Reuters reported. Customers Bancorp is also said to be exploring a deal for all or part of SVB. Carson Block said depositors at SVB and Signature Bank should have taken haircuts after regulators seized the firms. BBG A more detailed look at global markets courtesy of Newsquawk APAC stocks were mostly subdued after the recent bout of central bank rate hikes and choppy performance stateside where Wall Street just about closed higher amid a dovish market repricing of Fed rate expectations.     ASX 200 was lower with risk appetite sapped by weak PMI data which returned to contraction territory. Nikkei 225 lacked conviction after the latest inflation data printed mostly in line with estimates. Hang Seng and Shanghai Comp. retreated after the central bank drained liquidity and as participants digest earnings releases, while it was also reported that the US added 14 Chinese entities to the red flag list. Top Asian News HKMA said Hong Kong has very little exposure to the European and US banking situation, while it needs to monitor the situation carefully for any further volatility but is not concerned about risks to the Hong Kong banking sector. China is to extend some tax relief measures, according to local media. Equities are back under marked pressure as banking sector concern re-intensifies within Europe, Euro Stoxx 50 -2.3% & ES -0.8%. Specifically, the European banking index SX7P -5.0% is the standout laggard amid broad-based pressure in banking names as CDS' for the stocks continue to rise alongside focus on the redemption of notes by Deutsche Bank and Lloyds; currently, Deutsche Bank -12% is the Stoxx 600 laggard. Stateside, futures are pressured in tandem with the above price action though with the magnitude less pronounced ahead of the arrival of US players and as we await potential updates to the regions own banking names. Apple (AAPL) supplier Pegatron (4982 TW) is reportedly looking to open a second factory within India, to construct the latest iPhone models, via Reuters citing sources. Top European News ECB is likely to reassure EU leaders regarding bank stability on Friday and is to call for EU deposit insurance, according to Reuters. ECB's Nagel says it is necessary to increase policy rates to sufficiently restrictive levels, whilst the APP wind down should accelerate from Q3. Domestic price pressures are likely to last for longer, whilst underlying inflation is increasingly concerning. There are signs of second-round effects from inflation-induced higher wage increases. ECB's Nagel says there is often a bumpy road after similar instances in the banking sector, not surprising there have been market moves. On Deutsche Bank's share slide, ECB's Nagel will not comment. BoE's Bailey says rates will rise again if firms hike prices, via BBC; "If all prices try to beat inflation we will get higher inflation," Bank headlines Deutsche Bank (DBK GY) announces a decision to redeem its USD 1.5bln fixed to fixed reset rate subordinated Tier 2 notes, due 2028. Lloyds (LLOY LN) has issued a notice of redemption for the entire outstanding principal amount of the USD 1bln 0.695% senior callable fixed-to-fixed rate notes due 2024. In terms of the accompanying risk-off price action, the desk notes the early redemption(s) can perhaps be taken as a negative if we assume the justification is that the bank(s) expect to see more dovishness/risk-off before the next fixed-to-fixed rate adjustment. UBS Wealth Management head Khan offered a retention package to Credit Suisse's Asia staff in Hong Kong town hall which focuses on stabilising the Credit Suisse Asia team and boosting banker confidence, according to sources. Credit Suisse (CSGN SW) and UBS (UBSG SW) are among the banks facing a US Russia-sanctions probe. Fed Balance Sheet: 8.784tln (prev. 8.689tln); Total factors supplying reserve funds 8.784tln (prev. 8.689tln); Loans 354.191bln (prev. 318.148bln); Bank Term Funding Program 53.669bln (prev. 11.943bln); Other credit extensions 179.8bln (prev. 142.8bln). FX The USD is benefitting from the marked risk-off move with the index surpassing 103.00 from a 102.50 base in short-order and extending further to a 132.25+ peak since. Action which comes to the detriment of peers ex-JPY, as USD/JPY has been lower by roughly a full point at worse (best) given its haven allure and with JPY repatriation factoring. Notably, CHF is outperforming its peers, ex-JPY, but is still softer overall as its proximity/exposure to the European banking situation continues to overshadow traditional haven status vs USD though it is markedly outperforming the EUR as the focus is on EZ banks this morning. As such, EUR is the standout laggard with EUR/USD down to a 1.0722 trough vs initial 1.0830 best, antipodeans are similarly hampered given their high-beta status and after Thursdays firmer action. Cable failed to see a lasting benefit from the morning's retail data while the subsequent PMIs were slightly softer than expected; but, again, the action is very much USD-driven. PBoC set USD/CNY mid-point at 6.8374 vs exp. 6.8367 (prev. 6.8709) Fixed Income Core benchmarks are experiencing a marked bid given the risk-off price action that we are seeing with an accompanying dovish re-pricing being seen for Central Banks. Specifically, Bunds have surpassed 139.50 and USTs above 1.17 with the respective 10yr yields down to 2.02% and 3.29% with market pricing in favour of an unchanged outcome at the next ECB and Fed meetings as such. Gilts are moving in tandem with EGB/UST peers and have eclipsed 107.00; BoE pricing is now heavily in favour of an unchanged outcome at the May meeting. Commodities Commodities diverge given the marked risk-off action with crude and base metals pressured while precious metals glean incremental support as the USD offsets the benefit of haven demand. Specifically, WTI and Brent are under USD 68.00/bbl and USD 74.00/bbl respectively which places them at the mid/lower-end of the current WTD USD 64.12-71.67/bbl and USD 70.12-77.44/bbl parameters. Spot gold is incrementally firmer though is yet to convincingly surpass USD 2k/oz while base metals are dented by the aforementioned tone with 3-month LME Copper slipping further below 9k to a USD 8940 low. Russia could recommend a temporary halt to wheat and sunflower exports, via Vedomosti; due to the sharp decline in prices. US base at North-east Syria's Al-Omar oil field has been targeted in an attack, according to security sources cited by Reuters. UBS maintains a positive outlook on Gold and targets USD 2050/oz by the end of the year. Geopolitics Ukraine's top ground forces commander said Ukrainian troops are to launch a counterassault soon as Russia's large winter offensive weakens without capturing the eastern city of Bakhmut, according to Reuters. Russian Security Council Deputy Chairman Medvedev says cannot rule out that Russian forces will need to reach Kyiv or Lviv to 'destroy the infection', according to RIA. US Pentagon said the US conducted air strikes in Syria which targeted an Iranian-backed group in response to a deadly UAV attack, according to Reuters and Wall Street Journal. US Treasury Secretary Yellen said sanctions on Iran have created a real economic crisis in that country and the US is constantly looking at ways to strengthen Iran sanctions but added that sanctions may not be sufficient to change a country's behaviour, according to Reuters. China's Defence Ministry said it monitored and drove away a US destroyer which entered the South China Sea Paracel Islands on Friday again and sternly demands the US to immediately stop such provocations, according to Reuters. North Korea said it conducted an important weapon test and firing drill from March 21st-23rd, while it added that it conducted a new underwater attack system in which it tested a new nuclear underwater attack drone and launched strategic cruise missiles. Furthermore, North Korea said its leader Kim guided the military activities and that Kim seriously warned enemies to stop reckless anti-North Korea war drills, according to KCNA. South Korean President Yoon said they will step up security cooperation with the US and Japan against North Korea's nuclear and missile provocations, while he said they will make sure North Korea pays the price for its reckless provocations, according to Reuters. US Event Calendar 08:30: Feb. Durable Goods Orders, est. 0.2%, prior -4.5% 08:30: Feb. -Less Transportation, est. 0.2%, prior 0.8% 08:30: Feb. Cap Goods Orders Nondef Ex Air, est. -0.2%, prior 0.8% 08:30: Feb. Cap Goods Ship Nondef Ex Air, est. 0.2%, prior 1.1% 09:45: March S&P Global US Manufacturing PM, est. 47.0, prior 47.3 09:45: March S&P Global US Services PMI, est. 50.2, prior 50.6 09:45: March S&P Global US Composite PMI, est. 49.5, prior 50.1 10:00: Revisions: Wholesale Inventories 11:00: March Kansas City Fed Services Activ, prior 1 DB's Jim Reid concludes the overnight wrap There's a bad bout of conjunctivitis going round the school at the moment and every member of the family has now had it with the last hold out being me until yesterday. So my eyes are a bit blurry this morning looking at screens. One of the twins believes he has conjunctiv"eye-test" as he thinks it's called. If he hadn't given it to me I'd think he was quite sweet. As I was looking at screens last night through weepy eyes, markets looked like they were trying to normalise. However late weakness in financials again was a big drag on the last couple of hours of US trading. Just after the European close, the S&P 500 was up over +1.2% and looked set to reverse a good portion of the previous day’s losses. However by the end of the session, further weakness in banks and cyclicals more broadly left the index only +0.30%, but having been down nearly half a percent with 30 minutes left in trading. The VIX, which intraday was near its lowest level (20.18) since the SVB issues became prominent, ended the day 0.35pts higher at 22.6. Today we'll see if the flash PMIs around the world are impacted by the early part of the mini banking crisis we've seen in the last two weeks. So watch the European and US numbers carefully. The renewed weakness in banks yesterday actually started in Europe with the STOXX Banks index down -2.27%. The STOXX 600 recovered from an intraday low of almost -1.0% to finish -0.21% lower overall. CDS markets highlighted the stress in European financials as the Subordinated Financial CDS index widened (+20bps) for the first time since last Friday – before the CS-UBS merger news – while the Senior CDS index was +9bps wider. In the US, the Regional bank ETF, KRE, was down -2.78% yesterday whilst the broader KBW Bank index was -1.73% lower as liquidity concerns of the smaller banks continue to permeate. Staying with bank liquidity, after the US close last night, the Fed’s weekly balance sheet data showed that the use of the Fed’s discount window was down from $153bn to $110bn, while the credit deployed to SVB and Signature was up from 143bn to 180bn, and lastly the new emergency bank lending facility (BTFP) was up from $12bn to $54bn. So net of the two failed banks there was little change, indicating that banks were not finding it necessary to access cheap capital. The market should look favourably on that from a contagion standpoint. Overnight S&P and Nasdaq futures are both up around +0.2% and 2 and 10yr UST yields are both around -4.5bps lower as we go to press. Far before that balance sheet data came out the S&P 500 opened much stronger, up +1.8% and stayed buoyant through the first three hours of trading, before the weakness in regional banks weighed on overall sentiment throughout the US afternoon. This was most pronounced with a bout of selling just before Treasury Secretary Yellen spoke in front of a House of Representatives subcommittee an hour or so before the US close. The selling might have been nervousness ahead of her remarks, given the negative market reaction to her comments before the Senate on Wednesday. Regardless, the S&P actually saw a +1.0% whipsaw move when Yellen said that the US government was “prepared for additional deposit action if warranted.” This was quickly faded, with the index continuing to trade between smaller gains and losses until it ended the day +0.30% higher. Despite the weakness in banks and Energy (-1.4%) on the back of lower oil prices, the S&P finished in the green thanks to Tech stocks outperforming on the lower rate outlook. The FANG+ index surged by +2.53%, whilst the NASDAQ 100’s gains (+1.19%) mean it’s now up nearly 20% from its lows at the end of December, almost meeting the traditional definition of a bull market. On the rates side, 10yr Treasury yields held up for the most part, with the 10yr yield -0.08bps to 3.427%. Short-dated rates were another story, with 2yr yields -10.4bps lower to 3.833% fully on the back of lower inflation expectations (-13.3bps), while 5yr rates were -7.2bps lower. This saw the 2s10s yield curve normalise a further +9.4bps yesterday to -41.3bps, which is the least inverted the curve has been in over 5 months. This drop in yields led by inflation expectations was also borne out in fed future pricing, where the market now only sees a 40% chance of a 25bp hike during the May meeting. In Europe there was a sharp decline in longer dated yields that accelerated later in the session, with yields on 10yr bunds (-13.3bps), OATs (-12.3bps) and BTPs (-10.4bps) all moving lower. Furthermore, those moves came in spite of some of the ECB’s hawks calling for further tightening. For example, Austria’s Holzmann said that the ECB would “probably have to add” to its rate hikes at the next meeting in May. And the Netherlands’ Knot said that “I still think that we need to make another step in May, but I don’t know the size of that”. Speaking of central banks, we had the Bank of England’s latest decision yesterday, who hiked rates by 25bps as expected. That takes the Bank Rate up to a post-2008 high of 4.25%, and 7 of the 9 MPC members were in support, with the other 2 preferring to remain on hold. Looking forward, the BoE said that they still expected inflation “to fall significantly” in Q2, aided by falling energy prices and the government’s move to extend the Energy Price Guarantee in last week’s budget. And when it comes to inflationary pressures, they said that if “there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required.” In his review (link here), our UK economist writes that while he sees some upside to growth and pay, there are downsides to services CPI and credit conditions, making the next meeting in May a difficult decision to call. On balance, he sees more downside risks than upside, and holds onto his call for the Bank Rate to remain where it is at 4.25%, with the risks tilted to one further hike. Whilst we’re on central banks, yesterday also saw the Swiss National Bank hike rates by 50bps, taking the policy rate up to 1.5%. There were a number of hawkish-leaning details, including an upgrade in their inflation forecast relative to December, and their statement said that inflation was “still clearly above the range the SNB equates with price stability.” In the meantime, SNB President Jordan said that a “Credit Suisse bankruptcy would have had serious consequences for national and international financial stability and for the Swiss economy” and that “taking this risk would have been irresponsible.” This morning in Asia equity markets are lower with the KOSPI (-0.72%) the biggest underperformer with the Nikkei (-0.41%), the Shanghai Composite (-0.54%), the CSI (-0.27%) and the Hang Seng (-0.21%) trading in negative territory. Data from Japan has shown that consumer price inflation (+3.3% y/y) slowed in line with forecasts but for the first time in 13 months in February, compared to a +4.3% increase in January, mainly due to the effect of government’s energy subsidy program. At the same time, core-core CPI (excluding both fresh food and fuel costs) advanced further to +3.5% y/y in February (v/s +3.4% expected), notching the fastest y-o-y gain since January 1982. It followed a +3.2% increase in January highlighting the underlying inflationary pressures. Staying with Japan, the preliminary estimate for manufacturing PMI showed that sector activity remained in contraction for the fifth consecutive month in March after the reading came in at 48.6, albeit up from the previous month’s final reading of 47.7 as output and new orders remained under pressure. On the contrary, activity in the services sector expanded for the seventh straight month in March as the PMI edged up to 54.2, recording the fastest pace since October 2013, against prior month's reading of 54.0. Elsewhere, manufacturing as well as services in Australia slipped into contractionary territory as the manufacturing PMI fell to 48.7 in March from 50.5 in February with the services PMI deteriorating to 48.2 from the prior print of 50.7. When it came to yesterday’s data, the US weekly initial jobless claims came in at a 3-week low of 191k over the week ending March 18 (vs. 197k expected), pointing to continued strength in the labour market. Continuing claims saw a small increase to 1694k (1690k expected) and remains in a slight up-trend but not at a concerning level yet. Meanwhile, the new home sales data for February showed a modest rise to an annualised rate of 640k (vs. 650k expected), taking them up to a 6-month high. Over in the Euro Area, the European Commission’s preliminary consumer confidence data for March showed a decline to -19.2 (vs. -18.2 expected), marking a reduction after 5 consecutive monthly improvements. To the day ahead now, and data releases include the March flash PMIs from Europe and the US, along with UK retail sales for February, and the preliminary US durable goods orders for February. Otherwise from central banks, we’ll hear from the ECB’s De Cos, Nagel and Centeno, the Fed’s Bullard and the BoE’s Mann. Tyler Durden Fri, 03/24/2023 - 08:09.....»»

Switzerland "Looking More Like A Banana Republic" After CS 'Rescue' Having enraged bondholders (who saw their entire AT1 debt tranche wiped out before the equity was fully impaired, violating every conventional liquidation waterfall): Mark Dowding, chief investment officer at RBC BlueBay, which held Credit Suisse AT1 bonds, said Switzerland was “looking more like a banana republic” “If this is left to stand, how can you trust any debt security issued in Switzerland, or for that matter wider Europe, if governments can just change laws after the fact,” David Tepper, the billionaire founder of Appaloosa Management, told the Financial Times. “Contracts are made to be honored.” Swiss authorities attempted to defend their actions, claiming that all the contractual and legal obligations had been met for it to act unilaterally given the urgency of the situation. However, as Gavekal Research's Louis-Vincent Gavekal writes, as books get written about Credit Suisse’s demise, fundamental questions will have to be asked: Was the bank condemned once Switzerland gave up its bank secrecy laws five years ago? Did the negative yield curve that prevailed in Switzerland for over a decade push the bank into taking excessive risk and accepting rotten deals (Greensill, Archegos, Wirecard)? Was its management just poor compared to other banks? Are private banks and investment banks condemned to be poor bedfellows? Whatever the reasons, it is hard to see a storied institution disappear and not feel a degree of compassion. But taking a step back, Credit Suisse may not be the only thing that died today. For amid the Swiss bank’s weekend “rescue”, the notion that the Swiss can be counted on to be both punctilious and the ultimate “rule followers” has also been blown out of the water. Indeed, the episode creates two precedents: 1) A bank can merge with another bank without shareholder approval being granted. The logic runs that if a bank is systemically important, minority shareholder rights have to be overrun in the name of the “greater good”. This is an important precedent that minority shareholders in all systemically important banks will no doubt take notice of. 2) Even as the “take-under” of Credit Suisse leaves equityholders with cents on the dollar, contingent convertible bond holders (known as CoCos or AT1 bonds) are being wiped out. This is an arresting development, given that even unsecured bondholders usually rank above equityholders in the capital structure. So for equityholders to get “something” and CoCo bond holders to get “nothing” raises serious questions about the real value of CoCo bonds. This is important since CoCo bonds were widely used by European banks to bolster their balance sheets after the 2008 mortgage crisis and 2011-13 eurozone crisis. To cut a long story short, the terms of the Credit Suisse take-under is likely to kill the CoCo market. Imagine being the Saudi National Bank, which in October invested US$1.5bn for a 9.9% stake in Credit Suisse, no doubt on the premise that Switzerland is one of the safest jurisdictions for foreign investors. Yet in less than six months, the Saudi bank’s investment has been merged into UBS, crystallizing a loss of some 80%, without a vote being offered on the matter. How likely are Saudi institutions to invest more in Switzerland, or perhaps even in the wider Western world? This situation brings me to two of my longstanding themes: Firstly, that Western economies keep on undermining their main comparative advantage, namely, the rule of law and sacrosanct property rights. After all, when China was accepted into the World Trade Organization in 2001, the hope was that as trade grew, China would become more rules-based, democratic and civic rights-minded. Instead, the reverse has occurred, with Western countries following China to permit less free speech and impose more government interventions that include directed bank lending policies. The West embraced stupid Covid restrictions, imposed vaccine mandates and repressed demonstrations of dissent (see Who Is Copying Who? Part II? & What Freezing Russia’s Reserves Means). In the battle between “individual rights” and the “common good”, the West could usually be relied on to strongly favor “individual rights”. But can one believe that today? The Credit Suisse take-under shows that, given a chance, policymakers will trample all over “individual rights” in the name of promoting the “common good”. This is probably doubly true if the individuals in question are both foreign and from non-democratic countries. Since most current account surpluses accumulate in countries like China, Saudi Arabia and Qatar and most of the world’s twin deficits occur in democracies like the US, France and Britain, a difficult question arises: if Western economies no longer treat property rights as sacrosanct, why should capital keep flowing from the “greater South” into the “unified West”, as it has since the late 1990s Asian Crisis? Secondly, Western policymakers seem ready to sacrifice “individual rights” on the altar of the “common good” due to a bad brew stemming from the 2008 crisis, social media’s development and our current cultural predilection for virtue signaling (see The Guiding Principle Of Our Time & CYA As A Guiding Principle (2022)). All of this has shortened policy time horizons to the “here and now”. Hence, the more involved a population is with social media, the more the policy time frame shortens, with the “common good” tending to prevail over “individual rights”. So more individual freedoms expressed on social media seems to lead to weaker individual rights! Putting it all together, the unfolding Credit Suisse debacle and the Swiss government’s policy responses lead to the following conclusions: 1) The effect of government interference is to raise regulatory uncertainty and so again make the broader financial industry uninvestible. 2) Breaking the CoCo bond market means that in the next crisis banks will have to fund themselves in new ways, or shareholders will simply face massive dilution. 3) Emerging market savings will increasingly stay at home. I exaggerate for effect, but if I was a Saudi banker today, I might feel that, like the Russians last year, my assets had just been seized. 4) Policymaking in the Western world remains a shambles. This means that emerging market bonds will continue to outperform developed market bonds, and gold is likely to continue outperforming both. Tyler Durden Fri, 03/24/2023 - 06:55.....»»

Compelling portfolio, strong market presence and a solid capital position continue to drive Primerica (PRI). Primerica’s PRI shares have gained 14.1% year to date against the industry’s decline of 3.9%. While the Finance sector has decreased 4.3%, the Zacks S&P 500 composite has risen 3.1% in the same period.  With a market capitalization of $5.9 billion, the average volume of shares traded in the last three months was about 0.2 million.Compelling portfolio, strong market presence and a solid capital position continue to drive this Zacks Rank #1 (Strong Buy) insurer. This second-largest issuer of term-life insurance coverage in North America has a decent history of delivering earnings surprises in two of the last four reported quarters while missing in other two.Can PRI Retain the Momentum?The Zacks Consensus Estimate for 2023 earnings stands at $14.80, suggesting an increase of 29.4% on 3.5% higher revenues of $2.8 billion. The consensus estimate for 2024 earnings stands at $16.50, suggesting an increase of 11.5% on 5.3% higher revenues of $3 billion. Its earnings have grown 14.4% over the last five years, outperforming the industry average of 2.6%.Strong demand for protection products should drive sales growth and policy persistency for the insurer. PRI’s strong business model makes it well-poised to cater to the middle market's increased demand for financial security.  Licensed representatives play a major role in driving operational results for PRI. The insurer thus remains focused on growing licensed representativesGiven mid-single-digit sales growth, PRI expects adjusted direct premium growth to hover around 6% per year for the next three years.Life insurers are direct beneficiaries of an improving interest rate environment. The Fed raised interest rates seven times in 2022 and once in 2023 so far, with more on the horizon this year. At its December meeting, the Fed indicated taking the interest rate to 5.1% in 2023 to combat its expected 3.1% inflation. Thus, an improving interest rate environment should aid net investment income.The insurer had solid liquidity with cash and cash equivalents. Primerica has been strengthening its balance sheet by improving its leverage ratio. PRI thus scores strongly with credit rating agencies.PRI expects the Term Life business to be the primary source of deployable capital. It has hiked dividends 10 times in the last nine years. The insurer also engages in share buyback.Primerica envisions to be a successful senior health business while continuing to enhance its shareholders’ value. Banking on the operational strength, estimates for 2023 and 2024 moved 7.5% and 13.2% in the last 30 days, reflecting analyst optimism.Other Stocks to ConsiderSome other top-ranked stocks from the life insurance industry are Brighthouse Financial BHF, Sun Life Financial SLF and Voya Financial VOYA.Brighthouse Financial delivered a trailing four-quarter average earnings surprise of 2.07%. Year to date, BHF has lost 18%.The Zacks Consensus Estimate for BHF’s 2023 and 2024 earnings indicates a respective year-over-year increase of 33.5% and 11.5%. The insurer sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.Sun Life’s earnings surpassed estimates in each of the last four quarters, the average being 9.14%. Year to date, SLF has lost 5.9%.The Zacks Consensus Estimate for SLF’s 2024 earnings implies a year-over-year rise of 8.1%. The insurer carries a Zacks Rank #2 (Buy).Voya Financial has a solid track record of beating earnings estimates in each of the last four quarters, the average earnings surprise being 38.68%. Year to date, VOYA has gained 7.9%.The Zacks Consensus Estimate for VOYA’s 2023 and 2024 earnings indicates a respective year-over-year increase of 7.3% and 13%. The insurer carries a Zacks Rank #2. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Primerica, Inc. (PRI): Free Stock Analysis Report Sun Life Financial Inc. (SLF): Free Stock Analysis Report Voya Financial, Inc. (VOYA): Free Stock Analysis Report Brighthouse Financial, Inc. (BHF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Univar (UNVR) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Univar (UNVR). Shares have added about 3% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Univar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Univar’s Q4 Earnings and Revenues Lag EstimatesUnivar reported profits of $71.6 million or 44 cents per share in the fourth- quarter of 2022, down from $156.8 million or 91 cents per share in the year-ago quarter.Adjusted earnings in the reported quarter were 47 cents per share, down 22% from 60 cents in the year-ago quarter. It missed the Zacks Consensus Estimate of 56 cents.The company’s revenues were $2,592.6 million in the quarter, up 3.8% year over year. The top line lagged the Zacks Consensus Estimate of $2,798.1 million. The upside in sales can be attributed to the company’s pricing discipline, partly offset by lower demand resulting from consumer destocking.Segment HighlightsRevenues from the USA division rose 5.3% year over year to $1,698.9 million in the quarter. The upside was primarily driven by pricing discipline, which was mitigated by consumer destocking.The EMEA segment reported $468.8 million in revenues, down 2.5% year over year. The upside in external sales was supported by pricing discipline, offset by weak demand.Revenues from the Canada segment went up 3.9% year over year to $255 million. The upside was led by pricing discipline offset by weak demand due to consumer destocking.Revenues from the LATAM unit rose 7.7% to $169.9 million, driven mainly by pricing discipline and the Sweetmix acquisition, which mitigated the impact of consumer destocking that led to lower demand.FY22 ResultsEarnings, as adjusted, in the full-year 2022 were $3.40 per share compared with $2.22 a year ago. Net sales climbed 20.3% to $11,475.3 million.FinancialsUnivar ended the quarter with cash and cash equivalents of $385.3 million, up 53.2% year over year. Long-term debt was $2,426.9 million, up 9.1%.Net cash provided by operating activities rose to $546.4 million in 2022 from $290.3 million in the prior-year quarter. The company repurchased shares worth more than $400 million in 2022.OutlookThe company expects adjusted EBITDA for first-quarter 2023 to be $200-$220 million. For 2023, adjusted EBITDA is forecast in the band of $900-$930 million. The guidance reflects strong operational execution, market share growth, cost management and savings seeding from its Value Capture Program. The company also sees net free cash flow for 2023 to be in the range of $425-$445 million. How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.The consensus estimate has shifted -21.15% due to these changes.VGM ScoresCurrently, Univar has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Univar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Univar Solutions Inc. (UNVR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Transocean (RIG) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Transocean (RIG). Shares have lost about 1.2% in that time frame, outperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Transocean due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Transocean Posts Wider Loss, Revenue Miss in Q4Transocean reported an adjusted net loss of 49 cents per share in the fourth quarter of 2022. The figure was wider than the Zacks Consensus Estimate of a loss of 19 cents per share. This underperformance can be attributed to a decline in revenues from contract drilling.Moreover, RIG’s bottom line declined from the year-ago period’s loss of 19 cents.The offshore drilling powerhouse’s total adjusted revenues of $625 million missed the Zacks Consensus Estimate of $629 million.However, adjusted revenues rose 1.7% from the year-ago figure of $615 million. This outperformance was primarily driven by higher operational days, higher recharge revenues, and strong bonus revenues.Revenue BreakupTransocean’s Ultra-deepwater floaters contributed to 71.7% of the total contract drilling revenues. Harsh Environment floaters accounted for the remaining 28.3%.In the fourth quarter of 2022, revenues from the Ultra-deepwater and Harsh Environment floaters totaled $434 million and $172 million, respectively, compared with the corresponding year-ago quarter’s reported figures of $432 million and $189 million.Revenue efficiency for the reported quarter was 98%, higher than the year-ago value of 94.5% and the 95% reported sequentially.Dayrates, Utilization & BacklogAs of February 2023, the contract backlog for Transocean is $8.5 billion.Average day rates in the quarter were $348,600, down from the year-ago level of $352,500.RIG’s average revenues per day from Harsh Environment floaters went from $387,700 to $357,900, indicating a a year-over-year decline. However, average revenues per day from Ultra-deepwater floaters increased to $344,800 from $337,100 in the year-ago quarter.Total fleet average rig utilization was 49.4% in the quarter, down from the prior-year period’s figure of 53.4%.Costs, Capex & Balance SheetOperating and maintenance costs decreased to $423 million from $430 million in the year-ago period.In the fourth quarter of 2022, Transocean’s capital expenditures were $409 million, significantly higher than the year-ago period’s $87 million.Cash provided by operating activities was $448 million at the end of 2022.The company had cash and cash equivalents worth $683 million as of Dec 31, 2022. The long-term debt was $6.62 billion, with a debt-to-capitalization of around 38% as of Dec 31, 2022.GuidanceFor 2023, Transocean expects revenues in the $2.9-$3 billion range based on 96.5% revenue efficiency.The company anticipates a capital expenditure (Capex) of $275 million and a maintenance Capex of $100 million.Transocean anticipates $635 million in adjusted contract drilling revenues in the first quarter of 2023 and a nearly 15% increase in the number of offshore wells drilled in 2023.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates review.The consensus estimate has shifted -131.37% due to these changes.VGM ScoresAt this time, Transocean has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Transocean has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Transocean Ltd. (RIG): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

Palo Alto (PANW) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues. A month has gone by since the last earnings report for Palo Alto Networks (PANW). Shares have added about 1.7% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Palo Alto due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Palo Alto Outpaces Q2 Earnings & Revenue ExpectationsPalo Alto Networks reported strong second-quarter fiscal 2023 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate and improved year over year.The company reported non-GAAP earnings of $1.05 per share, beating the Zacks Consensus Estimate of 78 cents. The bottom line improved 81% from the year-ago quarter’s non-GAAP earnings of 58 cents per share.Palo Alto’s fiscal second-quarter revenues of $1.66 billion surpassed the Zacks Consensus Estimate of $1.65 billion. The top line grew 26% from the year-ago reported figure.The top line was aided by several deal wins and increased adoption of Palo Alto’s Next-Generation Security (NGS) platforms driven by the hybrid work culture and the heightened need for stronger security.The company’s strong quarterly performance reflects its sustained focus on product innovation, a shift in its business model to subscription-based services, platform integration and continued investments in the go-to-market strategy.Quarterly DetailsProduct revenues increased 15% year over year to $352.9 million and contributed to 21.3% of total revenues. The company’s subscription and support revenues, which accounted for 78.7% of total revenues, improved 29.1% to $1.30 billion.Billings increased 26% to $2.03 billion. Deferred revenues at the end of the fiscal second quarter were $3.94 billion. Palo Alto’s remaining performance obligation climbed to $8.8 billion, reflecting a year-over-year increase of 39%.Palo Alto’s NGS annualized recurring revenues were $2.33 billion in the reported quarter compared with $2.11 billion in the previous quarter and $1.43 billion in the year-ago quarter.Non-GAAP gross profits increased 28.1% to $1.25 billion. Non-GAAP gross margin expanded 150 basis points (bps) to 75.5% with easing global supply chain pressures.Non-GAAP operating income rose 55% to $376.8 million while non-GAAP operating margin expanded 440 bps to 22.8%.Balance Sheet & Cash FlowPalo Alto exited the fiscal second-quarter with cash, cash equivalents and short-term investments of $3.35 billion, down from $3.80 billion at the end of the previous quarter. As of Jan 31, 2023, the company had a long-term operating lease liabilities of $274.2 million.PANW generated an operating cash flow of $694.6 million and a non-GAAP adjusted free cash flow of $685.2 million during the fiscal second quarter.Non-GAAP adjusted free cash flow margin came in at 41.4%.Raised GuidanceThe management of Palo Alto raised the fiscal 2023 guidance for billings, non-GAAP earnings and adjusted free cash flow margin, while it still anticipates fiscal revenues in the range of $6.85-$6.91 billion. This suggests top-line growth of 25-26% from the fiscal 2022 level.Total billings of the company are now estimated to be $9.10-$9.20 for fiscal 2023, indicating a year-over-year increase of 22-23%. Previously, billings were expected to be in the $8.95-$9.10 billion band, which suggested a year-over-year increase of 20-22%.Palo Alto projects non-GAAP earnings to be in the $3.97-$4.03 per share band compared with the prior guided range of $3.37-$3.44 per share.Non-GAAP adjusted free cash flow margin forecast is also raised from the range of 34.5-35.5% to 36.5-37.5% band for fiscal 2023.For the third quarter of fiscal 2023, Palo Alto projects revenues between $1.695 billion and $1.725 billion, suggesting year-over-year growth of 22-24%.Total billings are anticipated between $2.20 billion and $2.25 billion, indicating an increase of 22-25% from the year-ago quarter. Non-GAAP earnings are projected to be 90-94 cents per share.How Have Estimates Been Moving Since Then?It turns out, estimates revision have trended upward during the past month.The consensus estimate has shifted 55.39% due to these changes.VGM ScoresAt this time, Palo Alto has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Palo Alto has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerPalo Alto is part of the Zacks Security industry. Over the past month, Check Point Software (CHKP), a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended December 2022 more than a month ago.Check Point reported revenues of $638.5 million in the last reported quarter, representing a year-over-year change of +6.6%. EPS of $2.45 for the same period compares with $2.25 a year ago.For the current quarter, Check Point is expected to post earnings of $1.74 per share, indicating a change of +10.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.Check Point has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Is THIS the Ultimate New Clean Energy Source? (4 Ways to Profit) The world is increasingly focused on eliminating fossil fuels and ramping up use of renewable, clean energy sources. Hydrogen fuel cells, powered by the most abundant substance in the universe, could provide an unlimited amount of ultra-clean energy for multiple industries.  Our urgent special report reveals 4 hydrogen stocks primed for big gains - plus our other top clean energy stocks.  See Stocks NowWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Palo Alto Networks, Inc. (PANW): Free Stock Analysis Report Check Point Software Technologies Ltd. (CHKP): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»

onsemi (ON) is expanding its product portfolio with the launch of the online Elite Power Simulator and Self-Service PLECS Model Generator. onsemi ON is expanding its product portfolio with the launch of the online Elite Power Simulator and Self-Service PLECS Model Generator.At the early stage of the development cycle, these tools through system-level simulations provide accurate data for complex power electronic applications that save time.These latest tools will enable onsemi’s EliteSiC Silicon Carbide (SiC) product to develop custom applications, instead of costly and time-consuming hardware fabrication and testing.Moreover, deploying Elite Power Simulator and Self-Service PLECS Model Generator in combination helps in creating high-fidelity system-level PLECS models.onsemi’s dominant position in silicon carbide has been a major factor driving its growth trajectory. In 2022, onsemi shipped more than $200 million in silicon carbide revenues and remains on track to deliver $1 billion in 2023. onsemi expects to generate more than $4.5 billion in silicon carbide revenues between 2023 and 2025.The company’s shares have gained 30.8% in the past year, outperforming the Zacks Computer & Technology sector, which has declined 15.3%. ON Semiconductor Corporation Price and Consensus  ON Semiconductor Corporation price-consensus-chart | ON Semiconductor Corporation Quote Strong Auto End-Market Driving onsemi’s Prospectsonsemi is benefiting from strong automotive and industrial end-markets. In fourth-quarter 2022, automotive (47% of revenues) revenues were $988.7 million, up 54.2% year over year. Industrial (26.3% of revenues) end-market (including military, aerospace and medical) revenues increased 5.8% year over year to $552.4 million.The company is winning market share in the automotive segment thanks to its silicon carbide dominance as well as intelligent power and sensing solution. onsemi's EliteSIC silicon carbide modules increase the efficiency and lower the weight of the traction inverters, extending electric vehicle range and improving performance.Electronic vehicles are expected to be long-term growth drivers and onsemi is aggressively adding capacity in the Hudson, Czech Republic and South Korea manufacturing sites. Moreover, an expanding clientele that includes Volkswagen, Tesla TSLA, Jaguar Land Rover and Hyundai Motor Group benefits top-line growth.  onsemi’s partnership with Volkswagen to provide the silicon carbide modules that enable a complete traction inverter solution for its entire fleet of next-generation electric vehicles enhances prospects. The company has started generating revenues from the Tesla for silicon carbide shipments and expects revenue to grow in 2023.onsemi expects revenues between $1.87 billion and $1.97 billion for first-quarter 2023. Non-GAAP earnings are envisioned between $1.02 per share and $1.14 per share.The Zacks Consensus Estimate for earnings currently stands at $1.09 per share, unchanged over the past 30 days. The consensus estimate for revenues stands at $1.92 billion, indicating a decline of 1.22% year over year.Zacks Rank & Stocks to Consideronsemi currently has a Zacks Rank #3 (Hold).Airbnb ABNB and Arista Networks ANET are some better-ranked stocks in the broader sector.While Airbnb has gained 23.6%, Arista Networks has declined 25.6%, in the past year.The Zacks Consensus Estimate for Airbnb’s first-quarter 2023 earnings is pegged at 14 cents per share, unchanged in the past 30 days. The consensus mark for Arista Networks’ first-quarter 2023 earnings stands at $1.34 per share, up by a penny in the past 30 days. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA): Free Stock Analysis Report Arista Networks, Inc. (ANET): Free Stock Analysis Report ON Semiconductor Corporation (ON): Free Stock Analysis Report Airbnb, Inc. (ABNB): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research.....»»