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MarineMax, SciPlay, Facebook, Google and Sony highlighted as Zacks Bull and Bear of the Day

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Zacks Equity Research
·9 min read
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For Immediate Release

Chicago, IL – February 2, 2021 – Zacks Equity Research Shares of MarineMax, Inc. HZO as the Bull of the Day, SciPlay Corporation SCPL as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Facebook, Inc. FB, Alphabet Inc. GOOGL and Sony Corporation SNE.

Here is a synopsis of all five stocks:

Bull of the Day:

I like big boats and I cannot lie. Of course, I like the boats when my friend owns it because that is not a check I am trying to write. Boat stands for "Bust Out Another Thousand." There are plenty of folks out there investing in their own watercraft. Rather than hop up on a cruise ship with three thousand potentially COVID-infected strangers, lots of people are buying their own boats. That is helping spur a huge run in earnings for today's Bull of the Day.

I am talking about Zacks Rank #1 (Strong Buy) MarineMaxMarineMax operates as a recreational boat and yacht retailer in the United States. The company sells new and used recreational boats, including pleasure boats, boats, and sport cruisers; mega-yachts, sport yachts, and other yachts; fishing boats; motor and convertible yachts; pontoon boats; fishing boats; ski boats; and jet boats. The company has 77 retail locations in Alabama, Connecticut, Florida, Georgia, Maryland, Illinois, Massachusetts, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Texas, Washington, and Wisconsin.

In addition to being a Zacks Rank #1 (Strong Buy), MarineMax enjoys the rare combination of have a Zacks Value Style Score of A, Growth Style Score of A, Momentum Style Score of B, which helps it round out with a VGM Composite Score of A. The reason for the favorable Zacks Rank is the series of recent earnings estimate revisions to the upside. Over the last month alone, for analysts have increased their earnings estimates for next year while three have done so for the current year. It has pushed up our Zacks Consensus Estimate for the current year from $3.74 to $4.03 while next year's number is up from $4.06 to $4.25. That means, current year EPS growth is forecast to come in at 17.84%, and expected to slow to 5.6% next year.

Bear of the Day:

As you can imagine, COVID has been unkind to casino stocks. The industry was at the unfortunate junction of two businesses which were shuddered and suffered greatly. With the broad market recovering off the COVID lows, several casino stocks have hung in there. However, ancillary businesses, which are tied to gaming, have still been under pressure. One such company is today's Bear of the Day.

Today's Bear of the Day is Zacks Rank #5 (Strong Sell) SciPlaySciPlay develops and publishes digital games on mobile and Web platforms worldwide. The company offers seven games, which include social casino games, such as Jackpot Party Casino, Gold Fish Casino, Hot Shot Casino, and Quick Hit Slots, as well as casual games comprising MONOPOLY Slots, Bingo Showdown, and 88 Fortunes Slots. Its social casino games include slots-style game play, as well as table games-style game play; and casual games blend slots-style or bingo game play with adventure game features.

The reason for the unfavorable Zacks Rank is negative earnings estimate revisions. Our Zacks Consensus Estimate has been dropping for both the current year and next year. Current year estimates call for 95 cents EPS. That number represents a contraction of 37.91% year-over-year. What is strange for me to see, is revenue growth this year is actually forecast to be 24.59%. I wonder how large that revenue growth number would have to have been in order to see some EPS growth. Some kitchen-sink quarters were no doubt to blame as next year's EPS growth is forecast at 14.86% on revenue growth of just 1.72%.

The Gaming Industry ranks in the Bottom 11% of our Zacks Industry Rank.

Additional content:

3 Stocks to Watch on Increasing Adoption of Virtual Reality

Virtual Reality ("VR") as a phenomenon has been gradually gaining popularity over the last few years as it offers users an immersive experience. Users can enjoy being in an artificially created 3D environment, much like the experience they would have if they were actually there and the pandemic has also helped in accelerating that trend of adoption.

Notably, per a report by Mordor Intelligence, the VR market was valued at $17.25 billion in 2020 and is estimated to reach $184.66 billion by 2026, witnessing a CAGR of 48.7% during 2021-2026.

The report mentioned that the VR market stands to benefit from the trend of remote working which became the norm due to the outbreak of the COVID-19 pandemic. In fact, ARtillery Intelligence stated that the use of VR within businesses is estimated to grow from $829 million in 2018 to $4.26 billion in 2023, as quoted in a CNBC article.

The spread of the pandemic also led to an increasing adoption of VR within the healthcare industry. Notably, doctors and nurses received training via VR in order to fill in the gaps arising out of the shortage of time and resources.

Notably, the most-significant contributor to the adoption of VR has been gaming. Gamers have always felt the need to connect more with their games and VR is the most plausible way of achieving that since it offers a fully simulated environment, reflecting their favorite games. In fact, per another Mordor Intelligence report, VR in the gaming market is expected to witness a CAGR of 32.75% from 2021-2026.

The report further mentioned that per a worldwide survey, 59% of respondents which included "technology company executives, startup founders, investors, and consultants," stated that gaming is set to dominate the investment directed at developing VR technology.

Meanwhile, the tourism industry is also set to receive a boost from the adoption of VR as the pandemic halted travel plans around the globe. VR stands to offer the best alternative to actually traveling to a destination as tourists can take a stroll of the place through their head-mounted displays or accessories without risking the spread of the virus. Notably, countries have already offered VR marketing efforts in order to revive their tourism industries, with Germany unveiling numerous immersive projects.

3 Stocks to Watch

The use of VR technology seems set to advance going forward with various sectors adopting it owing to the convenience it provides. This makes it a good time to watch out for stocks focused on virtual reality that can benefit from this trend. Notably, we have selected three such stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.

Facebook develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. Notably, the company has its Facebook Horizon VR platform, which allows users to create their own experience within the virtual world. Users can also immerse themselves in multiplayer games.

Moreover, the company also owns Oculus, a VR headset company. Facebook currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 7.5% over the past 60 days. The company's expected earnings growth rate for the current year is 9.9%.

Alphabet provides online advertising services and operates through Google and Other Bets segments. Notably, Google has emerged as a major player in the VR space with many offerings like its mobile VR platform, namely, Daydream and its Daydream View headset. It also has another platform called Google Earth VR, which allows users to experience famous places on the earth through virtual reality. The company carries a Zacks Rank #2.

The Zacks Consensus Estimate for its current-year earnings increased 0.5% over the past 60 days. The company's expected earnings growth rate for the current year is almost 20%.

Sony designs, develops, produces and sells electronic equipment, instruments, and devices for the consumer, professional and industrial markets worldwide. Notably, the company offers PlayStation VR, which allows gamers to immerse themselves in virtual reality games. It currently has a Zacks Rank #3.

The Zacks Consensus Estimate for its next-year earnings increased 2.7% over the past 60 days. The company's expected earnings growth rate for the next five years is 9.5%.

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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/performance for information about the performance numbers displayed in this press release.


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