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Hilton Grand Vacations and Ichor Holdings have been highlighted as Zacks Bull and Bear of the Day

Hilton Grand Vacations and Ichor Holdings have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – January 16, 2023 – Zacks Equity Research shares Hilton Grand Vacations HGV as the Bull of the Day and Ichor Holdings ICHR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on BP plc BP, Shell plc SHEL and Eni SpA E.

Here is a synopsis of all five stocks:

Bull of the Day:

Hilton Grand Vacations is a Zacks Rank #1 (Strong Buy) and it sports a B for Value and an A for Growth. This stock crushed earnings when it reported back in November and that broke a streak of three misses. Let’s explore more about this company in this Bull of The Day article.

Description

Hilton Grand Vacations Company, LLC, a division of Hilton Worldwide, is engaged in the hospitality business. It markets and operates vacation ownership resorts. The company also manages and serves club membership programs which include Hilton Grand Vacations Club(R) and The Hilton Club(R). It operates primarily in the USA, Indonesia, Italy, Mexico, New Zealand, Portugal, Scotland and Thailand. Hilton Grand Vacations Company, LLC is headquartered in Orlando, Florida.

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 Hilton Grand Vacations, I see one beat and three misses of the Zacks Consensus Estimate. That is not great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).

The average positive earnings surprise over the course of the last year works out to be 3.6%.

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher. 

Over the last 60 days, earning estimates have moved up for HGV.

This quarter has moved up from $0.73 to $0.77.

The full fiscal year 2022 has remained at $3.09 over the last 60 days. 

Next fiscal year has seen the estimate move from $3.74 to $3.85.

Positive movement in earnings help move this stock to a Zacks Rank #1 (Strong Buy).

Valuation

The valuation for this name is low even with the solid growth. I see a forward PE of 11x which is a little low given the company is coming off a quarter that saw topline growth of more than 20%. The price to book multiple is 2.4x. Price to sales comes in at 1.3x while the stock carries operating margins of roughly 9%. 

Bear of the Day:

Ichor Holdings is a Zacks Rank #5 (Strong Sell) and this move came after the company recently guided sales estimates lower due to weakness in the wafer fab equipment demand. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.

Description

Ichor Holdings, Ltd. is engaged in the design, engineering and manufacturing of critical fluid delivery subsystems for semiconductor capital equipment. Ichor Holdings, Ltd. is based in Fremont, 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 ICHR, I see two beats and two misses 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 Hormel I see annual estimates moving lower of late.

The current fiscal year consensus number moved lower from $3.82 to $3.70 over the last 60 days. 

The next year has moved from $2.54 to $2.14. That move lower is probably the biggest deciding factor for this stock to be a Zacks Rank #5 (Strong Sell).

Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).

It should be noted that a majority 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 Strong Sell.

Additional content:

3 Integrated Majors Leading the Energy Transition Race

Economies across the world are gradually transitioning to cleaner energy sources. There has been a steady increase in pressure on energy companies to act on climate change on multiple fronts. Most analysts believe that although renewable energy will meet future energy needs, this will not completely wipe out oil and natural gas demand. Demand for fossil fuels will also grow but at a slower pace.

The U.S. Energy Information Administration (“EIA”), in its Annual Energy Outlook 2022, revealed that renewables consumption will grow through 2050 at the fastest pace. EIA projects that over the period in the United States, the energy sources that will be mostly consumed are petroleum and natural gas.

Thus, there are abundant opportunities for energy companies with a footprint in oil and gas resources and the renewable energy space. Three such companies are BP plc, Shell plc and Eni SpA, each of which carries a Zacks Rank #3 (Hold). Thus, investors should keep an eye on these three energy firms as they are well poised to gain in the long run.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BP, a British energy giant, is planning to become a net-zero emissions player by 2050 or earlier. The integrated company intends to invest and create its renewable energy generation capacity of 20 gigawatts by 2025. The company also has strong upstream and downstream activities.

Shell also has the same ambitious target of becoming a net-zero emissions energy player by 2050 or earlier. By 2030, the integrated energy company plans to lower absolute emissions by 50%.

Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.

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Zacks Names “Single Best Pick to Double”

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It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

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BP p.l.c. (BP) : Free Stock Analysis Report

Eni SpA (E) : Free Stock Analysis Report

Ichor Holdings, Ltd. (ICHR) : Free Stock Analysis Report

Hilton Grand Vacations Inc. (HGV) : Free Stock Analysis Report

Shell PLC Unsponsored ADR (SHEL) : Free Stock Analysis Report

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