Rover Group and FS Bancorp have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 29, 2023 – Zacks Equity Research shares Rover Group ROVR as the Bull of the Day and FS Bancorp FSBW as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Company BKR, EOG Resources EOG and Matador Resources Co. MTDR.
Here is a synopsis of all five stocks:
Bull of the Day:
Rover Group is a Zacks Rank #1 (Buy) and it sports an F for Value and an A for Growth. This stock just reported a solid quarter and the stock is soaring as a result. Let's explore more about this company in this Bull of The Day article.
Description
Rover Inc. provides online marketplace for pet care. It connects pet parents with pet providers who offer overnight services, including boarding and in-home pet sitting, as well as daytime services, including doggy daycare, dog walking, drop-in visits and grooming. Rover Inc., is based in San Francisco.
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 Rover Group, I see four straight beats of the Zacks Consensus Estimate over the last calendar year. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earnings estimates have increased for ROVR.
The current quarter and next quarter are holding still at $0.03
The full year numbers are more important... and they are moving higher.
This year has moved from $0.01 to $0.03
Next year is now at $0.08 move up from $0.03.
Valuation
The valuation is a little high with the stock trading at 255x forward estimates with the industry average coming in at 27x. Price to book of 4x is well below the 4.9 industry average. Price to sales is at 5.8x and that is above the industry average of 1.9x.
Those valuation metrics are a little high, but keep in mind the company has just made the swing to profitability and that puts it on a lot more radar screens.
Bear of the Day:
FS Bancorp is a Zacks Rank #5 (Strong Sell) has seen earnings estimates slide lower recently despite the fact that it has beaten the Zacks Consensus Estimate in three of the last four quarters. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
FS Bancorp, Inc. is a holding company of 1st Security Bank of Washington that delivers banking and financial services to local families, local and regional businesses and industry niches within distinct Puget Sound area communities. It originates home improvement loans, commercial real estate mortgage loans, commercial business loans, and second mortgage/home equity loan products, consumer loans, including home improvement loans. The company also offers various lending products, such as commercial real estate, commercial business, and residential construction lending. FS Bancorp, Inc. is headquartered in Mountlake Terrace, Washington.
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 FSWB, I see two 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 FSWB I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $4.74 to $4.43 over the last 60 days.
The next year has moved from $4.89 to $4.48 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:
Permian Oil Rig Count Falls After 2 Weeks of Increases
In its weekly release, Baker Hughes Company stated that the U.S. rig count was lower than the prior-week figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes' data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with a week-ago figure indicate the demand trajectory for the company's oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 632 for the week ended Aug 25. The figure is lower than aweek-ago count of 642. The figure decreased for seven straight weeks, representing a slowdown in drilling activities. Some analysts think that shale producers are getting more efficient, therefore requiring fewer rigs. While some doubt whether some producers have enough prospective land to drill. The current national rig count is also lower than a year-ago level of 765.
Onshore rigs in the week ended Aug 25 totaled 613, lower than the prior week's count of 621. In offshore resources, 16 rigs were operating, lower than the prior week's count of 17.
U.S. Oil Rig Count Falls: Oil rig count was 512 in the week ended Aug 25, lower than a week-ago figure of 520. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is down from a year-ago figure of 605.
U.S. Natural Gas Rig Count Declines: Natural gas rig count of 115 is lower than a week-ago figure of 117. The count of rigs exploring the commodity is below a year-ago week's 158. Per the latest report, the number of natural gas-directed rigs is 92.8% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 15 units, lower than a week-ago count of 18. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 617 is lower than the prior-week level of 624.
Gulf of Mexico (GoM) Rig Count Falls: GoM rig count was 15 units, all oil-directed. The count was lower than the prior-week number of 16.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil rig count of 317, lower than the prior week's 323. The number decreased after increasing for two straight weeks.
Outlook
The West Texas Intermediate crude price is trading at more than the $75-per-barrel mark. Despite solid oil prices, there has been a slowdown in drilling activities, as upstream players are mainly focusing on stockholder returns rather than boosting output. Also, the inflationary environment can slow economic growth and thereby may lower crude demand. This, in turn, may affect drilling activities.
Despite all these odds, investors can keep a close eye on energy stocks like EOG Resources and Matador Resources Co., as the companies are expected to benefit from the current healthy oil price scenario.
EOG Resources, currently carrying a Zacks Rank #3 (Hold), is a leading oil and natural gas exploration and production company. It is well-placed to capitalize on the promising business scenario. It has an estimated 11,500 net undrilled premium locations, resulting in a brightened production outlook.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
EOG Resources is strongly committed to returning capital to shareholders. Since transitioning to premium drilling, the company has returned a handsome amount of cash to stockholders. With the employment of premium drilling, EOG can reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.
Matador Resources has a strong presence in the oil-rich core acres of the Wolfcamp and Bone Spring plays in the Delaware Basin. Promising oil price is likely to aid it in increasing production volumes. Matador acquired Advance Energy Partners Holdings, LLC, which comprises several oil and natural gas-producing properties and undeveloped acreage. MTDR, carrying a Zacks Rank of 3, expects the buyout to be accretive to important valuation and financial metrics.
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EOG Resources, Inc. (EOG) : Free Stock Analysis Report
Baker Hughes Company (BKR) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
FS Bancorp, Inc. (FSBW) : Free Stock Analysis Report
Rover Group, Inc. (ROVR) : Free Stock Analysis Report
