Advertisement
U.S. markets close in 5 hours 18 minutes
  • S&P 500

    5,110.12
    +13.85 (+0.27%)
     
  • Dow 30

    39,019.22
    +22.83 (+0.06%)
     
  • Nasdaq

    16,149.09
    +57.17 (+0.36%)
     
  • Russell 2000

    2,072.25
    +17.41 (+0.85%)
     
  • Crude Oil

    80.04
    +1.78 (+2.27%)
     
  • Gold

    2,071.10
    +16.40 (+0.80%)
     
  • Silver

    23.08
    +0.20 (+0.87%)
     
  • EUR/USD

    1.0838
    +0.0030 (+0.28%)
     
  • 10-Yr Bond

    4.2090
    -0.0430 (-1.01%)
     
  • GBP/USD

    1.2639
    +0.0013 (+0.10%)
     
  • USD/JPY

    150.2140
    +0.2300 (+0.15%)
     
  • Bitcoin USD

    61,570.23
    -1,463.63 (-2.32%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,677.24
    +47.22 (+0.62%)
     
  • Nikkei 225

    39,910.82
    +744.63 (+1.90%)
     

Carrols Restaurant Group and Helen of Troy have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – November 15, 2023 – Zacks Equity Research shares Carrols Restaurant Group TAST as the Bull of the Day and Helen of Troy HELE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on American Eagle Outfitters AEO, Abercrombie & Fitch ANF and Runway Growth Finance Corp. RWAY.

Here is a synopsis of all five stocks:

Bull of the Day:

Carrols Restaurant Group is a Zacks Rank #1 (Strong Buy) that has an A for Value and an A for Growth. Carrols Restaurant Group is the largest Burger King franchisee and has some Popeye's stores in the mix. The company just posted a good beat and shares are on the move higher. Let's explore more about this company in this Bull of The Day article.

Description

Carrols Restaurant Group, Inc. engages in the operation of restaurants under the Burger King and Popeyes brands. It serves flame-broiled whopper sandwich, hamburgers, chicken and other specialty sandwiches, fries, salads, breakfast items, smoothies, frappes, and other snacks. The company was founded in 1960 and is headquartered in Syracuse, NY.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.

For Carrols Restaurant Group, I see four beats of the Zacks Consensus Estimate. These are all big beats topping the estimate by an average of about 16 cents.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about.

For TAST, estimates are moving higher.

This quarter has moved from $0.03 to $0.04.

There is no estimate for the first quarter of next year at this time.

The full year 2023 has seen estimates move from $0.37 to $0.42 over the last 7 days.

Next fiscal year has seen a move higher from $0.39 to $0.45 over the same period.

Valuation

The valuation is pretty reasonable given the higher estimates and the tendency to crush the quarter. The forward PE is 17.8x, but if we stretch the time horizon out to next year, we see the a little lower than that. The price to sales comes in a 0.22x and the company has seen operating margins move from -1.05% to 1.53%. If margins keep improving at this rate, the stock should move a lot higher.

Bear of the Day:

Helen of Troy is a Zacks Rank #5 (Strong Sell) has seen earnings estimates slide lower recently despite a good history of beating Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.

Description

Helen of Troy engages in the manufacture and distribution of personal care and household products. It operates through the Home and Outdoor, and Beauty and Wellness segments. The Home and Outdoor segment offers food preparation tools, containers, electronics, baby care, and cleaning products. The Beauty and Wellness segment develops and provides products including mass and prestige market beauty appliances, prestige market liquid-based hair and personal care products, and wellness devices including thermometers, water and air filtration systems, humidifiers, and fans. The company was founded by Gerald J. Rubin and Stanlee N. Rubin in 1968 and is headquartered in Hamilton, Bermuda.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.

In the case of HELE, I see four straight beats of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn't make it a Zacks Rank #5 (Strong Sell) either.

The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.

Earnings Estimates

The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For DIS I see annual estimates moving lower of late.

The current fiscal year consensus number moved lower from $8.86 to $8.77 over the last 60 days.

The next year moved from $10.05 to $9.80 over the last 60 days.

Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).

It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).

Additional content:

3 Stocks to Take Advantage of the November Rally

Traditionally, the stock market in the United States tends to remain volatile during the late summer months due to a dearth of economic reports and earnings to spur a rally.

This year, the stock market, after peaking in July, failed to maintain the momentum. Major bourses, in reality, recorded three consecutive monthly losses in October, the longest such declining streak since March 2020.

Relatively high Treasury yields, along with tensions in the Middle East, resulted in choppier trading sessions, especially last month when the major indexes gave up most of their gains notched earlier this year.

However, the month of November has been historically strong for stocks since 1950, per LPL Financial. The broader S&P 500 has only declined once in November in the past 11 years, while the 30-stock Dow has advanced more than 1% on average in November for the last 100 years, according to Bespoke Investment Group.

Additionally, Ryan Detrick of the Carson Group found out that the S&P 500 always tends to gain in November after declining in the prior three-month period. Lest we forget that investors do tend to sell in May only to come back in October to take advantage of the year-end upward wave.

And things this year already seem to look encouraging for the stock market heading into mid-November. Last week, U.S. stocks ended on a positive note, and major indexes remain in the green month to date as Treasury yields stabilized. The Treasury yield continues to trade below the 5% mark it had breached last month.

U.S. stocks are also gaining this month as the Federal Reserve recently hinted that it is done with hiking interest rates since such aggressive monetary policy has been able to put downward pressure on inflation.

Most of the market participants now expect the Fed the keep rates unchanged in December as they did in their latest policy meeting. Needless to say, a pause in the benchmark lending rate will boost consumer spending, won't increase the cost of borrowing, and help the economy grow.

Talking about the economy, the third quarter GDP has expanded at the fastest annual rate in almost two years, banking on an uptick in consumer outlays. And with things looking promising for the economy vis-à-vis the stock market this November, it's wise for investors to buy stocks that can make the most of the upward rally.

Such stocks are American Eagle Outfitters, Abercrombie & Fitch and Runway Growth Finance Corp., which carry a Zacks Rank #1 (Strong Buy) or 2 (Buy) and have a Growth Score of A or B, a combination that offers the best opportunities in the growth investing space. You can see the complete list of today's Zacks Rank #1 stocks here.

American Eagle Outfitters is a specialty retailer of casual apparel, accessories, and footwear for men and women. American Eagle Outfitters, currently, has a Zacks Rank #1 and a Growth Score of A.

The Zacks Consensus Estimate for its current-year earnings has moved up 7.3% over the past 60 days. AEO's expected earnings growth rate for the current year is 36.1%.

Abercrombie & Fitch operates as a specialty retailer of premium, high-quality casual apparel for men, women and kids. Abercrombie & Fitch, currently, has a Zacks Rank #2 and a Growth Score of A.

The Zacks Consensus Estimate for its current-year earnings has moved up 1.6% over the past 60 days. ANF's expected earnings growth rate for the current year is 1,672%.

Runway Growth Finance is an externally managed business development company. Runway Growth Finance, currently, has a Zacks Rank #2 and a Growth Score of A.

The Zacks Consensus Estimate for its current-year earnings has moved up 4.2% over the past 60 days. RWAY's expected earnings growth rate for the current year is 34.9%.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.

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

Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report

American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report

Helen of Troy Limited (HELE) : Free Stock Analysis Report

Carrols Restaurant Group, Inc. (TAST) : Free Stock Analysis Report

Runway Growth Finance Corp. (RWAY) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Advertisement