Xometry and Lazydays Holdings have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – December 15, 2023 – Zacks Equity Research shares Xometry XMTR as the Bull of the Day and Lazydays Holdings LAZY as the Bear of the Day. In addition, Zacks Equity Research provides analysis on EQT Corp. EQT, Range Resources Corp. RRC and First Solar, Inc. FSLR.
Here is a synopsis of all five stocks:
Bull of the Day:
Xometry is a Zacks Rank #2 (Buy) that has an F for Value and an B for Growth The company has all the buzzwords that will get it on plenty of screens and searches... they are an AI enabled marketplace for on demand manufacturing. They use CNC machining, 3D printing, sheet cutting and injection molding. Let's explore more about this company in this Bull of The Day article.
Description
Xometry's (NASDAQ:XMTR) AI-powered marketplace, popular Thomasnet industrial sourcing platform and suite of cloud-based services are rapidly digitizing the $2.4 trillion manufacturing industry. Xometry provides manufacturers the critical resources they need to grow their business and makes it easy for buyers to access global manufacturing capacity and create locally resilient supply chains. The Xometry Instant Quoting Engine® leverages millions of pieces of data to quickly and effectively analyze complex parts in real-time, match buyers with the right suppliers globally and provide accurate pricing and lead times.
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 Xometry, I see two straight beats of the Zacks Consensus Estimate. The company did report two earnings misses over the last year as well. The average positive earnings surprise over the last year has been a +12.1%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
For XMTR estimates are moving higher.
This quarter has XMTR expected to lose 1 cent and that estimate has increased a penny from the 2 cent loss it was at 60 days ago.
Next quarter is the first quarter of 2024 and the estimate is calling for a gain of 5 cents.
The full year 2023 has seen estimates move from -$0.50 to -$0.40 over the last 60 days.
Next fiscal year has seen a move higher from $0.02 to $0.23 over the same period.
Accelerating Growth
This year the company is looking for 21.5% topline growth and that is great but even better than that is the 2024 is calling for 28% topline growth. Accelerating growth on top is a great signal.
Valuation
The Zacks site shows no PE, but at 23 cents the forward PE works out to be 117x which is pretty high but the growth here is big. There is a 3.6x price to book multiple which is just a hair over the range that value investors like to see. Price to sales at 2.7x looks like it could easily double from here is revenue growth continues to accelerate.
The margins are at negative numbers over the last few quarters, but as noted above the next quarter is going to be positive. So we should see operating margins go from -17% to -6% and then to +1%.
Bear of the Day:
Lazydays Holdings is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower recently following a rough year with 3 misses and one meet of the of the Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Lazydays Holdings, Inc. is an iconic brand in the RV industry. It offer RV brands, Lazydays features new and pre-owned RVs, service bays and on-site campgrounds. The company also has rental fleets in Florida, Arizona and Colorado. In addition, Lazydays RV Accessories & More stores offer accessories and hard-to-find parts. Lazydays Holdings, Inc., formerly known as Andina Acquisition Corp. II, is based in New York, United States.
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 LAZY, I see three misses of the Zacks Consensus Estimate and one meet. 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 LAZY I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from a gain of $0.05 to loss of $0.83 over the last 60 days.
The next year moved from a gain of $0.72 to a loss of $0.39 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 Stocks to Gain from Ongoing U.S. Clean Energy Transition
The United States is currently undergoing a significant shift toward cleaner energy sources as part of the effort to combat greenhouse gas emissions. This is evident in the data provided by the U.S. Energy Information Administration ("EIA"), which indicates that last year, 20% of the country's energy was generated from coal. Projections for 2023 and 2024 imply a decline in this proportion to 17% and 15%, respectively.
As a share of U.S. electricity generation, the proportions of renewables and natural gas are on the rise. EIA's data reflects that in 2022, the United States generated 39% of its energy from natural gas and 21% from renewables, and it projects that the respective shares are going to increase to 42% and 22% this year. In renewables, the focus is more on generating electricity from solar energy, with new solar capacities coming online.
Hence, it appears opportune for investors to closely monitor companies engaged in natural gas production and solar module provision. Employing our Stock Screener, we have identified three stocks – EQT Corp., Range Resources Corp. and First Solar, Inc. – each carrying a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks In Focus
EQT Corporation is a leading producer of natural gas in the United States, with its operations across the prolific Appalachian basin. The company's production outlook seems bright since it has premium untapped drilling locations across the gas-rich basin and is thus well-positioned to capitalize on clean energy demand.
Range Resources is also among the well-known natural gas producers in the domestic market, with a strong foothold in the Appalachian Basin. Having huge untapped high quality drilling locations, the company's production outlook also seems promising.
To accelerate its fight against global warming, First Solar is primarily engaged in providing eco-efficient solar modules. The advanced thin-film photovoltaic modules of First Solar represent highly advanced solar technologies of the next generation.
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
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EQT Corporation (EQT) : Free Stock Analysis Report
LAZYDAYS HOLDINGS, INC. (LAZY) : Free Stock Analysis Report
Xometry, Inc. (XMTR) : Free Stock Analysis Report
