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Ecopetrol, CONSOL Coal and Lululemon Athletica as Zacks Bull and Bear of the Day

Zacks Equity Research
Bank OZK (OZK) delivered earnings and revenue surprises of -35.56% and -5.16%, respectively, for the quarter ended September 2018. Do the numbers hold clues to what lies ahead for the stock?

For Immediate Release         

Chicago, IL – March 28, 2018 – Zacks Equity Research highlights Ecopetrol EC as the Bull of the Day and CONSOL Coal Resources CCR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Lululemon Athletica LULU.

Here is a synopsis of all three stocks:

Bull of the Day:                                              

While the welts have just showed up after yesterday’s market whooping, there is still hope. If you can look past the NASDAQ beatdown we saw, you’ll see that crude is actually being kind. Crude futures pushed themselves up over $66, proving more resilient that many folks had thought. Eventually this should translate to solid earnings for the energy sector. One stock in this sector worth a look at today is Bull of the Day Ecopetrol.

Ecopetrol S.A. operates as an integrated oil company. It operates through three segments: Exploration and Production; Transport and Logistics; and Refining, Petrochemical and Biofuels. The company produces crude oil and gas; and engages in the extraction, collection, treatment, storage and pumping, or compression of hydrocarbons. It also transports and distributes hydrocarbons, derivatives, and products. The company has 8,500 kilometers of transportation pipeline systems. In addition, it commercializes crude oils and by-products, including fuel oil, virgin naphtha, cracked naphtha, and aviation gasoline, and others; produces and markets polypropylene resin, compounds, and master batches; provides financing services; and offers refined and petrochemical products, as well as industrial service sales to customers. 

The company is currently a Zacks Rank #1 (Strong Buy) in an industry that ranks in the Top 2% of our Zacks Industry Rank. The main reason for the favorable rank is the recent string of bullish estimate revisions for next year’s earnings. Over the last sixty days, three analysts have increased their earnings estimates for next year, pushing up our Zacks Consensus Estimate from $1.28 to $1.52.

As for the stock price, it’s basically been on fire since the middle of October. Back then, the stock was trading under $10. A huge run has brought the stock up to $20. But if you’re a bull, beware of a potential double-top being put in at $20. Support lies at the 20-day moving average at $18.

Bear of the Day:

The coal stocks had a stretch where they came out from underground and had their day in the sun. Lately, that hasn’t been the case as these stocks have come under pressure. Today’s Bear of the Day is a stock in that industry which has struggled to produce earnings growth. I’m talking about Zacks Rank #5 (Strong Sell) CONSOL Coal Resources.

CONSOL Coal Resources LP produces and sells high-Btu thermal coal in the Northern Appalachian Basin and the eastern United States. It owns a 25% undivided interest in the Pennsylvania mining complex, which consists of three underground mines and related infrastructure that produce high-Btu bituminous thermal coal located primarily in southwestern Pennsylvania. The company markets its thermal coal principally to electric utilities in the eastern United States. CONSOL Coal Resources GP LLC operates as a general partner of the company. 

The reason for the unfavorable Zacks Rank is the recent negative earnings estimate revisions for the current quarter and current year. Over the last sixty days, two analysts have cut their earnings estimates for the current quarter while four have done so for the current year. The bearish attitude has cut our Zacks Consensus Estimate for the current quarter from 54 cents to 45 cents and pushed the current year number down from $2.03 to $1.84.

Additional content:

lululemon Surges on Strong Earnings, Double-Digit Comps

Lululemon Athletica just announced its fourth quarter fiscal 2017 results, posting adjusted earnings of $1.33 and revenues of $928.8 million.

Heading into the report, Lululemon shares are up just 1.5% year-to-date, and have fallen around 2.6% in the past trading week. LULU is currently up about 8% to just under $85 per share shortly after the report was released.

Currently, LULU is a #2 (Buy) on the Zacks Rank, and estimates have remained stable for the current years over the course of the past month.

Lululemon:

Beat earnings estimates. The athleisure giant reported adjusted earnings of $1.33 per share, surpassing the Zacks Consensus Estimate of $1.27 per share. This number excluded the impact of the ivivva restructuring and the U.S. tax reform.

Beat revenue estimates. The company saw sales of $928.8 million, topping our consensus estimate of $900.15 million and growing 18% year-over-year.

Total comparable sales surged 12%, with comparable store sales up 2%. Lulu also said that direct to consumer net revenues were up 44%.

Gross margin came to 56.3%, an increase of 210 basis points compared to the prior year quarter. Operating margin was 27.6%, increasing 270 bps compared to Q4 2016.

For Q1 2018, Lulu expects net revenues to be in the range of $612 million to $617 million based on a total comparable sales increase in the low double digits. Diluted EPS should fall between 44 cents to 46 cents per share.

"We are seeing strong momentum across our business as we now move into 2018, which is further positioning us to achieve our 2020 revenue goal of $4 billion. Importantly, we would like to thank our store educators, ambassadors, and the lululemon collective around the world for their energy and passion that is enabling our continued success,” said Stuart Haselden, Chief Operating Officer.

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Ecopetrol S.A. (EC) : Free Stock Analysis Report
 
lululemon athletica inc. (LULU) : Free Stock Analysis Report
 
CONSOL Coal Resources LP (CCR) : Free Stock Analysis Report
 
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