Signet Jewelers and America's Car-Mart have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 9, 2023 – Zacks Equity Research shares Signet Jewelers SIG as the Bull of the Day and America’s Car-Mart CRMT as the Bear of the Day. In addition, Zacks Equity Research provides analysis on AstraZeneca AZN and Sanofi SNY.
Here is a synopsis of all four stocks.
Bull of the Day:
The Zacks Retail – Jewelry industry is currently ranked in the top 24% (60 out of 250) of all Zacks Industries.
According to studies, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A company residing in the industry, Signet Jewelers, has seen its near-term earnings outlook turn visibly bright over the last several months, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
Signet Jewelers is the world’s largest retailer of diamond jewelry, with its locations primarily operating under the banners of Kay Jewelers, Zales, and Jared, to name a few.
Let’s take a closer look at how the company currently stacks up.
Strong Share Performance & Sound Valuation
Signet Jewelers shares have been notably strong over the last three months, penciling in a sizable 25% gain and crushing the S&P 500’s performance.
Clearly, buyers have stepped up.
Despite the strong share performance as of late, the company’s valuation multiples aren’t stretched; SIG shares currently trade at a 0.4X forward price-to-sales ratio, nearly in line with its five-year median and nowhere near its Zacks Retail and Wholesale sector average.
Signet Jewelers carries a Style Score of a “B” for Value.
Robust Quarterly Performance
The company has consistently exceeded quarterly estimates, beating top and bottom line estimates in ten consecutive quarters.
Impressively, SIG posted a steep 150% EPS beat and reported sales nearly 8% above expectations in its latest quarter. Below is a chart illustrating the company’s revenue on a quarterly basis.
Dividends provide a massive boost to any portfolio, allowing investors to reap a steady income stream.
And for those who seek income, SIG has that covered; the company’s annual dividend currently yields 1.2%, modestly above its Zacks sector average. SIG carries a sustainable 7% payout ratio.
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.
Additionally, 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.
Signet Jewelers would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
The Zacks Automotive – Retail and Wholesales industry has gotten off to a rough start in 2023, down roughly 8% YTD.
A company residing in the realm, America’s Car-Mart, has seen its near-term earnings outlook shift negative over the last several months, pushing the stock into a Zacks Rank #5 (Strong Sell).
America's Car-Mart is one of the largest automotive retailers in the United States, focused exclusively on the Buy Here/Pay Here segment of the used car market. Let’s take a closer look at how the company currently stacks up.
Share Performance & Valuation
CRMT shares have struggled to find traction over the last year, down nearly 30% and underperforming relative to the S&P 500. As we can see in the chart below, there has been some pretty violent price action.
The company’s shares currently trade at a 10.2X forward earnings multiple, beneath its five-year median and Zacks Retail – Wholesale sector average of 22.2X.
CRMT carries a Style Score of a “C” for Value.
CRMT has struggled to exceed EPS estimates as of late, falling short of earnings expectations in two consecutive quarters.
In its latest release, the company fell short of the Zacks Consensus EPS Estimate by more than 75% but reported sales 3% above expectations.
A wide bottom line miss in its latest quarter and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
America’s Car-Mart is a Zacks Rank #5 (Strong Sell), indicating that analysts have lowered their bottom-line outlook across the last 60 days.
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.
FDA Accepts AstraZeneca, Sanofi RSV Antibody Application
AstraZeneca and partner Sanofi announced that the FDA accepted their biologics license application (BLA) seeking approval for nirsevimab as a first protective option against respiratory syncytial virus (RSV) disease for all infants. A final decision from the regulatory body is expected in third-quarter 2023.
Nirsevimab is a single-dose long-acting antibody designed to prevent lower respiratory tract infections (LRTI) caused by RSV. If approved by the FDA, it would be the first single-dose RSV preventative option for the broad infant population in the United States.
The AstraZeneca/Sanofi filing seeks approval for nirsevimab to prevent RSV lower respiratory tract disease in newborns and infants entering or during their first RSV season and for children up to 24 months of age who remain vulnerable to severe RSV disease through their second RSV season.
The BLA is being supported by data from the comprehensive nirsevimab clinical development program, including the phase III MELODY study, the phase II/III MEDLEY study and multiple phase IIb studies. Data from these studies showed that nirsevimab achieved consistent protection of approximately 80% against medically attended RSV disease with a single dose.
Nirsevimab received its marketing authorization in the European Union (EU) in November 2022, where it is being marketed under the trade name Beyfortus. Currently, Beyfortus is approved in the EU for the prevention of RSV lower respiratory tract disease in newborns and infants during their first RSV season
In the past year, shares of AstraZeneca have gained 23.1%, while Sanofi’s shares have lost 3.8%. During the same period, the industry has risen 15.4%.
If approved within the designated time period, AstraZeneca/Sanofi expects to launch nirsevimab in the country during the 2023/2024 RSV season. Per the companies, the FDA indicated that it will expedite the BLA review timeline.
Currently, there are no FDA-approved treatments against RSV infections anywhere in the United States. The LRTI-RSV disease causes a high rate of morbidity and mortality in young kids.
AstraZeneca and Sanofi entered into an agreement in 2017 to jointly develop and commercialize nirsevimab. Per the terms of the agreement, AstraZeneca leads all development and manufacturing activities, and Sanofi leads commercialization activities and records revenue. The two companies share costs and profits.
AstraZeneca PLC price | AstraZeneca PLC Quote
Sanofi price | Sanofi Quote
AstraZeneca carries a Zacks Rank #3 (Hold), Sanofi holds a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Sanofi (SNY) : Free Stock Analysis Report
AstraZeneca PLC (AZN) : Free Stock Analysis Report
Signet Jewelers Limited (SIG) : Free Stock Analysis Report
America's CarMart, Inc. (CRMT) : Free Stock Analysis Report
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