Molson Coors and KnightSwift have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 21, 2024 – Zacks Equity Research shares Molson Coors TAP as the Bull of the Day and KnightSwift Transportation KNX as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Toll Brothers TOL, NVR NVR and Century Communities CCS.
Here is a synopsis of all five stocks.
Bull of the Day:
Molson Coors is a Zacks Rank #1 (Strong Buy) that has a B for Value and C for Growth. This brewer has seena dramatic lift in price and market share following a marketing disaster at Budweiser. The news of late is that TAP is looking to spend more on marketing in an effort to keep and grow its customer base. Let’s explore more about this company in this Bull of The Day article.
Description
Molson Coors Beverage Co. is a holding company, which engages in the production and sale of beer. It operates through the following segments: Americas, and EMEA and APAC. The Americas segment operates in the U.S., Canada and various countries in the Caribbean, Latin, and South America. The EMEA and APAC segment operates in Bulgaria, Croatia, Czech Republic, Hungary, Montenegro, the Republic of Ireland, Romania, Serbia, the UK, various other European countries, and certain countries within the Middle East, Africa, and Asia Pacific. The company was founded in 1786 and is headquartered in Golden, CO.
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 Molson Coors, I see four beats of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 37.2%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Following the most recent quarter estimates have trended higher.
The consensus estimate for the current quarter has increased from 68 cents to 71 cents.
Next quarter has seen the consensus move from $1.72 to $1.76.
The full fiscal year 2024 estimate has moved from $5.41 to $5.66
Next year has moved from $5.58 to $5.96.
Valuation
The forward PE multiple for TAP is just a hair below 11x and that is rather low considering the 6% topline growth that was posted in the most recent quarter. The price to book stands at 1x, which means the value oriented will be very interested in this stock as they tend to place more emphasis on that metric. The price to sales multiple comes out at just a little below 1x.
Bear of the Day:
KnightSwift Transportation is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower due following a recent earnings miss. The company is in trucking and transportation industry and could be interesting to some investors at these levels. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Knight-Swift Transportation Holdings, Inc. engages in the provision of multiple truckload transportation and logistics services. It operates through the following business segments: Trucking, Logistics, and Intermodal. The Trucking segment comprises irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. The Logistics segment includes brokerage and other freight management services. The Intermodal segment consists of revenue generated by moving freight over the rail in the containers and other trailing equipment, combined with the revenue for drayage to transport loads between the railheads and customer locations. The company was founded in 1966 and is headquartered in Phoenix, AZ.
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 KnightSwift Transportation, I see one beat of the Zacks Consensus Estimate and three misses. 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 KNX I see annual estimates moving lower of late.
The current year (2024) consensus number moved lower from $3.10 to $2.52 over the last 60 days.
The next year moved from $4.44 to $4.25 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 Top Housing Picks as Builder Confidence Hits 5-Month High
The housing market in the United States hit a roadblock recently after the Federal Reserve signaled that the central bank might not trim interest rates in the March policy meeting, while mortgage rates continue to edge up amid steady economic growth, a healthy labor market and elevated price pressures.
A March Fed rate cut is likely off the table since inflation hasn’t yet moved sustainably toward the central bank’s desired target of 2%. Needless to say, interest rate cuts reduce the cost of buying a house, which upsurges the demand for housing.
On the other hand, mortgage rates are inching up, with the 30-year fixed-rate mortgage averaging 6.77% as of Feb 15. It is up 13 basis points from the previous week. Now, higher mortgage rates lead to higher borrowing costs, thereby discouraging a potential buyer from purchasing a house due to higher monthly payments.
However, home-builder confidence surged in February since the housing industry expects the Fed to eventually cut interest rates later this year, which would bolster demand for homes. Homebuilders also expect mortgage rates to, sooner or later, drop and that could lead to more buyers entering the housing market amid pent-up demand.
The monthly confidence index of the National Association of Home Builders (NAHB) went up 4 points to 48 in February, its highest level since August. The home-builder confidence index rose for the third consecutive month and easily exceeded economists’ expectations of a reading of 46. The index was at 42, a year ago.
Homebuilders remain confident about present sales conditions. They are also hopeful about future sales, and expect an increase in traffic of potential buyers. Economic activity, by the way, has already improved in the housing market, with construction outlays increasing for the twelfth straight month in December.
Per the Commerce Department, construction spending increased 0.9% to $2.1 trillion in December as the government ramped up construction projects across the length and breadth of the country.
Thus, with the housing market warming up, it is judicious for investors to place their bets on sound home-builders such as Toll Brothers, NVR and Century Communities for handsome returns. These stocks flaunt a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Toll Brothers builds single-family detached and attached home communities. TOL currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has moved up 0.2% over the past 60 days. TOL’s expected earnings growth rate for the next five-year period is 8%.
NVR is engaged in the construction and sale of single-family detached homes, townhomes, and condominium buildings. NVR currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 14.5% over the past 60 days. NVR’s expected earnings growth rate for the next five-year period is 4.4%.
Century Communities is a home building and construction company. CCS currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has moved up 17.1% over the past 60 days. CCS’s expected earnings growth rate for the current year is 24.4%.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% 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/performance for 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
Molson Coors Beverage Company (TAP) : Free Stock Analysis Report
Toll Brothers Inc. (TOL) : Free Stock Analysis Report
Knight-Swift Transportation Holdings Inc. (KNX) : Free Stock Analysis Report
Century Communities, Inc. (CCS) : Free Stock Analysis Report
NVR, Inc. (NVR) : Free Stock Analysis Report
