For Immediate Release
Chicago, IL – May 23, 2017 –Zacks Equity Research United Continental Holdings (NYSE: UAL – Free Report ) as the Bull of the Day, Hibbett Sports (NASDAQ: HIBB – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet (NASDAQ:GOOGL) (NASDAQ: GOOGL – Free Report ), JD.com (NASDAQ: JD – Free Report ) and CSX Corp. (NASDAQ: CSX – Free Report ).
Here is a synopsis of all five stocks:
Anyone who has read about the airline industry in the past few months knows of the recent debacle at O’Hare forUnited Continental Holdings (NYSE: UAL – Free Report ). The company was in hot water thanks to the removal of a passenger from an airplane, which quickly went viral and was one of the more shocking events in air travel in quite some time.
Undoubtedly, this event damaged the company’s brand, and United has become a bit of a punchline thanks to the matter too. However, while the PR hit could take a while to dissipate, investors will note that United stock has continued to weather the storm and has actually been climbing higher as of late.
United in Focus
Shares of United just hit fresh highs, and revenues remain on the right track, expected to grow at modest levels for both this year and next year. The company has also seen rising earnings estimates as of late too, including several estimate increases in just the past week alone.
And for the current year and next year time frames, we actually haven’t seen any analysts reduce their estimates at all (in the past two months), suggesting there is total agreement about United’s improving story. Plus, with the consensus estimate having moved up by over 5% for both the current year and next year, the magnitude of the increase has also been impressive too.
It isn’t like United has a difficult time in meeting expectations either, as the company has missed earnings estimates once since late 2013, and it hasn’t missed at all since the start of 2016.
It hasn’t been a great time to be in the sports retailing market. Several companies in this business have gone bankrupt in the past few years and the growth outlook for the survivors, by and large, isn’t fantastic.
A great example of this trend is Hibbett Sports (NASDAQ: HIBB – Free Report ), a company that is expected to see EPS contract by a double-digit percentage level this year, and a whopping 45% this quarter when compared to the year ago period. Clearly, things aren’t expected to turnaround any time soon for Hibbett in terms of earnings, but what do analysts covering the stock think about their near-term prospects for a turnaround?
HIBB in Focus
Those covering the stock have been in universal agreement that the prospects for HIBB on the earnings front are getting worse. In just the past two months, the current quarter earnings consensus estimate has seen a reduction from 23 cents a share down to 16 cents per share, including eight cuts compared to zero increases.
We have seen a similar trend in the full year time frame too, including nine estimate cuts in the past month alone. This has actually brought the consensus estimate down from $2.74/share to $2.41/share, a decline of more than 12%.
With these kinds of figures, we shouldn’t be surprised to note that HIBB has earned itself a Zacks Rank #5 (Strong Sell), and that we are looking for the underperformance run to continue. And if that wasn’t enough, the stock also has a ‘D’ grade for a VGM Score including an ‘F’ for Growth. A negative projected EPS growth and a negative current cash flow growth will do that to a stock, especially when the industry has positive overall numbers for both of these metrics.
Overall, there just isn’t a whole lot to like about Hibbett Sports stock right now.
Additional content:
10 Years Later: Global Week Ahead
It has been a full 10 years since the onset of the global financial crisis.
These sovereign drivers of the world economy are showing clear signs of improved straights. But even now, their progress remains halting.
Yes, the United States unemployment rate sits at its lowest in a decade. But hourly pay grows slowly. Recent GDP growth data was weaker than expected.
Yes, in Europe and Japan, GDP growth has picked up. This has prompted the European Central Bank and the Bank of Japan to talk about eventually easing their huge quantitative easing (QE) stimulus programs.
Yet in Europe, Greece's debt crisis lingers. On Monday, the rest of the Eurozone might clear the way for more relief again, at a meeting of finance ministers.
Now, turn to the present circumstance of our global politics.
During the Global Week Ahead, pity the 10,000 residents of Taormina, Sicily. This small Sicilian city is being turned into a virtual fortress.
Next weekend, the historic city and beach resort on the Mediterranean island will host the G7 leaders from the U.S., Japan, Canada, France, Germany, the U.K. and Italy. During their summit, there will be 10,000 residents -- and 10,000 police, security and military.
Normally in late May, the 80 hotels in Taormina have 5,000 tourists. That can’t happen. These hotels don’t know how they are going to be compensated for this loss, if at all,
Taormina will indeed be under the microscope. New U.S. President Donald Trump has made this G7 summit the last stop on his first overseas trip.
He will be joined by other three other G7 opening acts: French President Emmanuel Macron, U.K. Prime Minister Theresa May and Italian Prime Minister Paulo Gentiloni.
Four new G7 leaders ease into their posts – out of 7 possible G7 posts. That shows you the amount of political turmoil the advanced countries experienced last year was indeed significant.
Want to know what debate is happening inside their local news? It is about where Trump sleeps--
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There are reports Trump will be staying on an aircraft carrier anchored in the Strait of Messina between Sicily and Italy,
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Other Italian media reports say he’ll be helicoptered to sleep at Sigonella Naval Base, a U.S. facility on the island in nearby Catania.
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Or he may indeed sleep inside what is called ‘the red zone,’ where the summit happens.
In global news feeds, here are the most pressing macro questions for the G7.
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How far will Trump go to remove the world's biggest economy from trade deals? Will he speak about watering down global banking rules?
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Will he pump up the U.S. dollar -- by turbo-charging the U.S. economy?
However, traders, keep a keen eye on Wednesday, stateside!
U.S. domestic political happenings can easily overshadow the G7 summit.
Former FBI Director James Comey has been invited to testify by House Oversight Committee Chairman Jason Chaffetz. This testimony happens on the same day the FBI is to provide requested documents regarding Comey–Trump communications
Alexis de Toqueville wrote,
“History is a gallery of pictures in which there are few originals and many copies…
…The surface of American society is covered with a layer of democratic paint, but from time to time, one can see the old aristocratic colors breaking through.”
Top Zacks #1 Rank (STRONG BUY) Stock Picks—
(1) Alphabet (NASDAQ:GOOGL – Free Report ): This major FANG stock (it is the G) is now a $660 billion market cap company. The long-term Zacks VGM score is C, with a D in Value. That shows you traders are betting on even more growth to come.
(2) JD.com (NASDAQ:JD – Free Report ): Have you heard of the great commercial success of internet giant Alibaba (NYSE:BABA) in Mainland China? This is their big competitor. The stock has a $58 billion market capitalization. The Zacks VGM score is a tasty B. When do Chinese stocks start purring again? That is a good question.
(3) CSX Corp. (NASDAQ:CSX – Free Report ): The Dow Transports are a first mover, indicating more U.S. GDP growth. The appearance of this big $46 billion market cap railroad stock on our top list of hot stocks bodes well for a turn up in growth more broadly. The long-term Zacks VGM score is B.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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United Continental Holdings, Inc. (UAL): Free Stock Analysis Report
Hibbett Sports, Inc. (HIBB): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
JD.com, Inc. (JD): Free Stock Analysis Report
CSX Corporation (NASDAQ:CSX): Free Stock Analysis Report
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