For Immediate Release
Chicago, IL – December 02, 2022 – Zacks Equity Research shares CONSOL Energy
CEIX
as the Bull of the Day and Whirlpool Corp.
WHR
as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Apple
AAPL
, Tesla
TSLA
and Meta
META
.
Here is a synopsis of all five stocks:
Bull of the Day
:
The Zacks Coal Industry has been scorching hot in 2022, up more than a triple-digit 110% and crushing the S&P 500’s performance.
Further, the Industry is currently ranked in the top 14% of all Zacks Industries (36 out of 250).
Studies have shown that 50% of a stock’s price movement can be attributed to the group it’s in, making it crucial to ensure that investors target stocks in a thriving industry.
In fact, the top 50% of Zacks Ranked Industries outperform the bottom 50% by a factor of more than two to one.
A company residing in the realm that’s witnessed positive earnings estimate revisions over the last several months is
CONSOL Energy
.
CONSOL Energy is a publicly owned producer and exporter of high-BTU bituminous thermal coal and is one of the leading energy companies in the United States.
Let’s take a closer look at how the company currently stands.
Share Performance & Valuation
Year-to-date, CEIX shares have been unbelievably strong, up more than 230% and leaving the S&P 500’s performance in the dust.
Over the last month, CEIX shares have continued on their market-beating trajectory, up nearly 20%.
Clearly, bulls have had complete control of this stock in 2022.
Currently, shares trade at a 1.4X forward price-to-sales ratio, above the 0.6X five-year margin and its Zacks Coal Industry average of 0.8X.
CEIX carries a Value Style Score of “B.”
Growth Outlook
It’s hard to ignore CEIX’s growth profile, further bolstered by its Style Score of “A” for Growth.
The Zacks Consensus EPS Estimate of $11.05 for its current fiscal year (FY22) suggests a Y/Y improvement of more than 430%. And in FY23, estimates suggest a further 150% of bottom-line growth.
The earnings growth comes on top of forecasted Y/Y revenue upticks of 57% in FY22 and 35% in FY23.
Dividends
Let’s face it – we all love to get paid.
Fortunately for those with an appetite for income, CEIX’s 5.4% annual dividend yield provides precisely that.
Bottom Line
One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.
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.
CONSOL Energy 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
:
Bears have had a tight grip on the Zacks Household Appliances Industry in 2022, down more than 40% and widely lagging behind the S&P 500.
Further, the industry is currently ranked in the bottom 11% of all Zacks Industries (222 out of 250).
A company residing in the realm that’s seen its near-term earnings outlook come under pressure over the last several months is
Whirlpool Corp.
.
Whirlpool is one of the largest manufacturers of home appliances in the world. The company’s portfolio of products can be broadly classified into laundry appliances, refrigerators and freezers, cooking appliances, and other small household appliances.
Let’s dive deeper into how the appliance titan stacks up currently.
Share Performance
WHR shares have been no exception to the general market’s woes in 2022, down more than 30% and lagging behind the S&P 500 notably.
Still, over the last month, WHR shares have tacked on a strong 15% in value, indicating that buyers have finally stepped up.
Growth Outlook
Whirlpool carries a less-than-favorable growth profile, with earnings forecasted to decrease by 28% in its current fiscal year (FY22) and a further 9.4% in FY23.
The projected earnings slowdown comes on top of forecasted Y/Y revenue decreases of 9% in FY22 and 4% in FY23.
Quarterly Performance
In its latest release, Whirlpool fell short of the Zacks Consensus EPS Estimate by nearly 20%, snapping a long streak of positive surprises.
Further, revenue results have consistently come in under expectations as of late, with the company falling short of sales estimates in five consecutive quarters. Below is a chart illustrating the company’s revenue on a quarterly basis.
Bottom Line
A slowdown in growth and negative earnings estimate revisions from analysts paint a less-than-ideal picture for the company in the short term.
Whirlpool Corp. is a Zacks Rank #5 (Strong Sell), telling us it has a weak near-term earnings outlook.
Investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – these stocks have a much stronger earnings outlook and potential to deliver explosive gains in the short-term.
Additional content:
Apple Up Nearly +5%: Should You Buy the Shares?
Apple
shares jumped 4.86% in the last trading session, part of the big rally that followed Fed Chair Powell’s signal that interest rates were going to rise at a slower clip, probably starting this month, and probably resulting in the soft landing that we are all hoping for.
Rates are at 3.75-4% right now, and now they could end up at 5% or higher. And then, they’re going to hold there for as long as it takes to get inflation down. That’s a bitter pill, but easier to swallow because it’s old news.
Of course, moderation is good for the stock market, which has also been absorbing the drop in job openings, which is seen as a signal that Fed actions are getting us somewhere. Inflation numbers will be out later today, so there’s no doubt that there will be some reaction to that, as well.
Inflation should hurt Apple, which sells this ultra-premium device, and some analysts have said that it could temper sales next year. You don’t have to change your phone after all when you’re seeing your savings melt away. Unless you have to.
But it would be a mistake to read Apple quarter to quarter. The company has a fairly captive user base that has so much stuff on its cloud, music and other apps that it’s really hard to switch even if you think that they’re being a bully [Tesla, Meta and others are certainly asserting this last issue]. And its devices are pretty much the best available, so there just isn’t much of an incentive to switch.
Therefore, even if people don’t buy or upgrade with Apple in the near term, they will likely eventually get around to it. The robust services business will continue to generate significant revenues and the cash hoard can always come in handy.
What should have weighed on the shares, however, is the unrest within China because that’s where its devices are put together. If its Chinese factories are not functional, and that’s how things appear to be right now, Apple simply won’t have enough product on the shelves. So Apple may give us a warning soon and estimates may have to be reset. Estimates have been coming down over the past quarter, and further downward revisions may be in the cards.
Unfortunately, the Fed is not giving us the pullback that would make Apple shares worth buying. Despite the deteriorating earnings scenario, Apple shares trade at a 23.3X P/E multiple, a 28% premium to the S&P 500 and a 7% premium to the technology sector. They are also trading at a 6% premium to their median level over the past five years. Therefore, the shares are not cheap.
Zacks has a #3 (Hold) rating on the shares and it seems like a good idea to wait for a better entry point.
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.
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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