Big Five Sporting Goods, Fossil, SORL Auto Parts, Dana and Fiat Chrysler Automobiles highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – May 30, 2017 –Zacks Equity Research Big Five Sporting Goods (NASDAQ: BGFV – Free Report ) as the Bull of the Day, Fossil (NASDAQ: FOSL – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SORL Auto Parts Inc. (NASDAQ: SORL – Free Report ), Dana Inc. (NYSE: DAN – Free Report ) and Fiat Chrysler Automobiles NV (NYSE: FCAU – Free Report ).
Here is a synopsis of all five stocks:
Bull of the Day :
Big Five Sporting Goods (NASDAQ:BGFV – Free Report ) is a sporting goods retailer in the western US, operating 431 stores in 11 states. They product lines include athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment.
Excellent Results
The retailer reported much better-than-expected results for Q1. Net sales were $252.6 million, up from net sales of $234.5 million for the same quarter a year ago. Same store sales increased 7.9% during the quarter. According to the company the growth reflected “continued market share gains resulting from the closure of certain major competitors last year along with more favorable weather conditions than the prior year period.”
Adjusted operating income was $0.24 per share, beating the Zacks Consensus Estimate of $0.14 by more than 71%.
Rising Estimates
Analysts have raised their estimates significantly after blockbuster results. Zacks Consensus Estimates for the current and next fiscal year have surged to $1.20 per share and $1.35 per share respectively from $1.11 and $1.26, before the results.
The company has beaten estimates in all of last four quarters, with an average positive beat of 95%!
Bear of the Day :
Headquartered in Richardson, TX, Fossil (NASDAQ: FOSL – Free Report ) is a designer and manufacturer of clothing and accessories. Under their portfolio of owned and licensed brands, their offerings include men's and women's fashion watches, jewelry, small leather goods, and wearables.
Their owned brands include Fossil, Michele, Misfit, Relic, Skagen and Zodiac, and licensed brands include adidas, Armani Exchange, Burberry, Chaps, Diesel, DKNY, Emporio Armani, Karl Lagerfeld, kate spade new york, Marc Jacobs, Michael Kors and Tory Burch.
Shares Plunge after Dismal Results
Fossil reported weak results with wider-than-expected losses for Q1. Net sales declined 12% from the same quarter a year ago.
Adjusted loss of 35 cents was much worse than the Zacks Consensus Estimate of a loss of 21 cents and earnings of 11 cents reported for Q1 2016. The loss was also wider than the management guidance of a loss of 10–25 cents per share.
“Our results for the first quarter, while largely in line with our expectations, continue to reflect a challenging retail environment and a watch category undergoing significant change,” said the CEO.
Falling Estimates
Analysts have slashed their estimates for the company after weak guidance. Zacks Consensus Estimates for the current and next fiscal year have fallen to $0.90 per share and $1.04 per share from $1.11 and $1.46 respectively, 30 days back.
Additional content:
3 Top Auto Stocks to Buy Now
In just the last decade, the automotive industry has drastically changed, in ways that we likely haven’t really noticed. Companies like Tesla redefining what it means to own a luxury vehicle, while Silicon Valley tech giants like Uber have not only helped create a new industry—ride-hailing—but it is also (controversially) working to further the development of self-driving vehicles.
And Uber isn’t just the only one. There is, of course, its burgeoning arch-nemesis Alphabet and its own self-driving car unit, Waymo, in addition to the laundry list of traditional automakers like Ford hoping to debut this technology in the near future.
While the dream of fully-functioning self-driving cars and other big technologies certainly loom both near and far, there are other facets of the auto industry that investors should make sure do not get lost in the shuffle. With this in mind, check out three top auto stocks to buy now.
SORL Auto Parts Inc. (NASDAQ:SORL – Free Report )
Specializing in the development, production, and distribution of air brake and hydraulic valves, SORL Auto Parts is headquartered in the Ruian District of Wenzhou City, China’s automotive manufacturing center. SORL’s customer base includes of original equipment manufacturers, aftermarket distributors, and international customers.
SORL is a #1 (Strong Buy) on the Zacks Rank, with a VGM score of ‘C.’ Looking at this year, its earnings growth estimates look promising. The company expects year-over-year earnings growth of 29%, with sales expecting to increase almost 16% in the same time frame. SORL has an average earnings surprise of over 94%, and has beaten analyst estimates in the past four consecutive quarters.
SORL could also be a solid value pick for investors, as it’s currently trading at below $10 per share. With a Value score of ‘A,’ the company has a P/E of 6.45 compared to the broader auto industry’s P/E of 12.04.
Dana Inc. (NYSE:DAN – Free Report )
Dana provides technology driveline, sealing, and thermal-management products. Headquartered in Maumee, Ohio, its operating segments include Light Vehicle Driveline Technologies, Commercial Vehicle Driveline Technologies, Off-Highway Driveline Technologies and Power Technologies.
Dana is a #1 (Strong Buy) on the Zacks Rank, with a VGM score of ‘C.’ For the current year, the company expects a slight jump in earnings of 0.26% year-over-year, but there have been six upward revisions of the last 30 days, with none lower. Sales are expected to grow over 11% in the same time frame. Dana has an average earnings surprise of nearly 36%, and has beating analyst estimates in the past four consecutive quarters.
Dana’s value metrics look good, though it’s just a bit more expensive, currently trading at around $20 per share. It has a Value score of ‘B,’ with a P/E of 10.44 compared to its broader industry’s P/E of 12.04.
Fiat Chrysler Automobiles NV (NYSE:FCAU – Free Report )
Fiat Chrysler is an international auto company, and designs, engineers, manufactures, and distributes vehicles, components, and production systems. Based in the United Kingdom, the company operates under the Abarth, Alfa Romeo, Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia and Ram brands.
FCAU is a #2 (Buy) on the Zacks Rank, with a VGM score of ‘A.’ Fiat Chrysler expects year over year earnings growth of 7.69% for the current year, with one positive estimate revision in the last 30 days compared to none lower. The automaker expects flat, about 0.35%, sales growth in the same time frame. Fiat Chrysler has an average earnings surprise of over 22%, and has beaten analyst estimates in three of the past four quarters.
Fiat Chrysler is currently trading at about $10 per share, and with its Value score of ‘A,’ the company could make for a good value pick. Its P/E is 5.40 compares to its broader industry’s P/E of 8.50.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>
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About the Bull and Bear of the Day
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Strong Stocks that Should Be in the News
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