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The Progressive and Floor & Decor have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – December 6, 2023 – Zacks Equity Research shares The Progressive Corp PGR as the Bull of the Day and Floor & Decor Holdings FND as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ford Motor Company F, Volvo VLVLY and BYD Company Ltd. BYDDY.

Here is a synopsis of all five stocks.

Bull of the Day:

The Progressive Corp, a current Zacks Rank #1 (Strong Buy), is a massive American insurance company. Analysts have taken their expectations higher across the board, particularly following its latest quarterly release back in mid-October.

In addition to favorable earnings estimate revisions, the company resides within the Zacks Insurance – Property & Casualty industry, currently ranked in the top 13% of all Zacks industries. Let’s take a deeper look at the company.

The Progressive Corp.

Progressive snapped a streak of negative surprises in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 20% and posting a modest 0.3% revenue surprise.

Drilling a bit deeper, Progressive saw total Policies in Force grow 10% from the year-ago period, reflecting continued business momentum. PGR shares enjoyed buying pressure following the print, now heading toward all-time highs.

It’s worth noting that Progressive shares have been monster performers in general over the last decade, delivering a remarkable 23% annualized return vs. the S&P 500’s 12.3%.

In addition, the stock could be a target among growth-focused investors, as reflected by its Style Score of “A” for Growth. Consensus estimates for its current fiscal year (FY23) suggest 34% earnings growth paired with an 18% sales climb, with expectations for FY24 suggesting earnings and revenue growth rates of 49% and 13%, respectively.

The company’s revenue growth has remained steady.

Bottom Line

Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.

The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.

The Progressive Corp. would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).

Bear of the Day:

Floor & Decor Holdings is a multi-channel specialty retailer of hard surface flooring and related accessories. The stock is currently a Zacks Rank #5 (Strong Sell), with analysts taking their earnings expectations lower across the board.

In addition, the company resides in the Zacks Building Products – Wood industry, which is currently ranked in the bottom 27% of all Zacks industries. Let’s take a closer look at its current standing.

Floor & Decor

Floor & Decor has faced a challenging environment amid broader economic challenges (housing affordability, slower sales of large-ticket discretionary purchases), with earnings forecasted to pull back roughly 20% in its current year on 2.5% higher revenues.

Earnings growth resumes modestly in FY24, with consensus expectations alluding to 0.6% growth paired with an 8% sales bump.

Shares are a bit expensive given the forecasted growth, with the current 44.5X forward earnings multiple (F1) undoubtedly on the higher end of the spectrum and above the 38.9X five-year median.

The current value is also well above the respective Zacks industry average of 28.2X. The stock carries a Style Score of “D” for Value.

Shares saw bullish activity post-earnings following its latest earnings release, helping spark a rally. Concerning headline figures, FND posted an 11% beat relative to the Zacks Consensus EPS Estimate and reported revenue modestly below expectations.

As shown below, the recent rally post-earnings has pushed shares above the 200-day daily moving average, a level that’s consistently seen action in previous instances. It looks worthwhile for investors to see if shares can hold and continue trading above this level, helping to further establish a meaningful positive trend.

Bottom Line

Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.

Floor & Decor Holdings is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.

For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.

Additional content:

Ford Invests in Indonesian Plant to Secure Nickel for EVs

Ford Motor Company is investing in a battery-nickel plant in Indonesia to strengthen its supply chain. It is collaborating with PT Vale Indonesia and Zhejiang Huayou Cobalt Co. in a project to produce 120,000 tons of nickel chemicals per year for electric vehicle (“EV”) batteries, per Bloomberg.

The nickel plant called Pomalaa, which is currently under construction, is likely to commence commercial production in 2026. Although the share of investment of each company in the project is unknown, the total investment is estimated to be around $4.5 billion.

In light of the rising demand for EVs, automakers are striving to secure raw materials like lithium, cobalt and nickel for EV batteries. Ford’s arch-rivals have also shown interest in similar investments. In January, General Motors invested $650 million in a lithium mine in the United States. Also, Tesla is planning on buying a lithium producer.

Amid growing refinery investment in Indonesia, the country has become a significant producer of battery-compatible nickel.

Per Lisa Drake, vice president of Ford's EV Programs and Energy Supply Chain, the direct investment in plants allows Ford to source nickel in cost-efficient ways. It also allows the automaker to keep the amount of nickel mined in line with the company’s sustainability target.

Ford aims to produce more than 2 million EVs by 2026-end. By 2030, it expects EVs to account for 50% of its global sales, which will cement its position in the red-hot EV landscape.

Zacks Rank & Key Picks

F currently carries Zacks Rank #3 (Hold).

Some better-ranked players in the auto space are Volvo and BYD Company Ltd., each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for VLVLY’s 2023 sales and earnings indicates year-over-year growth of 4.2% and 65.6%, respectively. The EPS estimates for 2023 and 2024 have increased by 2 cents each in the past 30 days.

The Zacks Consensus Estimate for RNLSY’s 2023 sales and earnings indicates year-over-year growth of 4.5% and 128.1%, respectively. The EPS estimates for 2023 and 2024 have increased by 15 cents and 2 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for BYDDY’s 2023 sales indicates year-over-year growth of 160.2%. The EPS estimates for 2023 and 2024 have increased by 62 cents and 57 cents, respectively, in the past 60 days.

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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.

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Ford Motor Company (F) : Free Stock Analysis Report

The Progressive Corporation (PGR) : Free Stock Analysis Report

AB Volvo (VLVLY) : Free Stock Analysis Report

Floor & Decor Holdings, Inc. (FND) : Free Stock Analysis Report

Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report

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