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MediaAlpha and ArcBest have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – May 9, 2024 – Zacks Equity Research shares MediaAlpha (MAX - Free Report) , as the Bull of the Day and ArcBest (ARCB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Arm Holdings (ARM - Free Report) , Airbnb (ABNB - Free Report) and The Trade Desk (TTD - Free Report) .
MediaAlpha is a Zacks Rank #2 (Buy) that has an C for Value and an A for Growth. This programmatic tech platform that specialized in vertical search and metasearch. The company recently posted a big beat and then sold 6.6M shares in an offering. Let’s explore more about this company in this Bull of The Day article.
Description
MediaAlpha, Inc. is a marketing technology company that helps insurance carriers and distributors target and acquire customers through technology and data science. Its technology platform brings insurance carriers and consumers together through a real-time, programmatic, transparent, and results-driven ecosystem. The company was founded by Steven M. Yi, Eugene Nonko, and Ambrose Wang in June 2011 and is headquartered in Los Angeles, CA.
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 MediaAlpha, I see four straight beats of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 45%.
The most recent beat had the company posting a loss of 2 cents per share when a loss of 11 cents per share was expected. That translates to a positive earning surprise of 81%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
The consensus estimate for the current quarter jumped from a loss of 13 cents to a gain of 3 cents.
Next quarter has seen the consensus move from a loss of $0.12 to a gain of $0.04.
The full fiscal year 2024 estimate has moved from a loss of $0.40 to a loss of $0.04.
Next year has moved from a loss of $0.21 to a gain of $0.14.
Valuation
The forward PE multiple for MAX is currently an NA on the Zacks website, but if we extend the forward part of the equation out to 2025, the PE comes in at 142x. A forward multiple that is as high as that would normally make investors blush, but the fact is the company is in the process of flipping from posting losses to posting gains.
There is little doubt that if the earnings surprises persist the estimate for 2025 will be much higher by the end of this year. The Zacks site also does not have a price to book multiple but does show a price to sales multiple of 3.6x.
ArcBest is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings miss. The company is best known for its freight transportation services and solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
ArcBest Corporation provides freight transportation services and solutions. The company's Freight Transportation segment offers transportation of general commodities; motor carrier freight transportation services; business-to-business air transportation services; ocean transport services; global customizable supply chain solutions and integrated warehousing services. Its Premium Logistics & Expedited Freight Services segment provides expedited freight transportation services to commercial and government customers; premium logistics services; and domestic and international freight transportation with air, ocean, and ground service. ArcBest Corporation, formerly known as Arkansas Best Corporation, is headquartered in Fort Smith, Arkansas.
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 ArcBest, I see two beats sandwiched between two misses of the Wall Street Estimate. The most recent quarter was a miss with the company posting $1.34 when $1.54 was expected. 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 ARCB I see annual estimates moving lower of late.
The current year (2024) consensus number moved lower from $10.19 to $8.78 over the last 60 days.
The next year has moved from $12.77 to $11.16 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:
Another Flat Day with Big Afternoon Earnings: ARM, ABNB & More
Markets were flat again yesterday. Over the past week or so of trading, the major indices have been treading water. For the past month, the Dow and the Nasdaq are marginally in the green, while the S&P 500 is marginally in the red and the small-cap Russell 2000 is -0.9%. For Wednesday’s session, the Dow scraped together +172 points, +0.44%, while the S&P was exactly 0.00%. The Nasdaq dipped a tad, -0.18%, while the Russell dropped -0.46%. For the Dow, it’s currently on the most tepid six-day winning streak ever.
Wholesale Inventories for March dropped to -0.4%, the lowest level since -0.5% in June of last year, and swinging to a negative month over month from the downwardly revised +0.2% for February. Lower inventory reads aren’t dire economic prints; in fact, they represent some of the worst growth an economy can have (once inventories are built up, if they do not sell right away, they must be rolled off over time). We’ve only had two positive Wholesale reads in the past year, averaging -2.6% over the past 12 months.
After Wednesday’s close, Arm Holdings reported fiscal Q4 earnings results. The recently re-publicly traded semiconductor design producer outperformed expectations on both top and bottom lines: earnings of 36 cents per share outpaced the Zacks consensus by 6 cents, while top-line sales of $928 million easily surpassed the $885 million analysts were looking for. Next-quarter guidance has been raised to 32-36 cents per share from 31 cents previously, while full-year revenues of between $875-925 million has a higher median than the $882.5 million estimate. Yet shares sold off -6% in late trading; that’s something that can happen when you’re +54% year to date: “sell the news.”
Airbnb shares also sold off following its quarterly results. Earnings of 43 cents per share on $2.14 billion in revenues shone past the 23 cents per share and $2.07 billion analysts were looking for. But revenues estimates for the current quarter came in at $2.68-2.74 billion, below the previous target of $2.76 billion in the Zacks consensus. It marks the twelfth-straight earnings outperformance for the home-stay experiences provider, but shares still slid -8% in late trading.
The Trade Desk also beat on top and bottom lines yesterday afternoon. The demand-side automation platform beat estimates by four cents to 26 cents per share (and above the 23 cents per share posted a year ago), while sales of $491 million amounts to a +28% positive surprise from $480 million expected. Revenues for the current quarter are anticipated to come in at $575 million or more, easily beating expectations for $570 million. Shares are up nearly +2% in the late session, adding to its +21% growth year to date.
Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.
Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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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MediaAlpha and ArcBest have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – May 9, 2024 – Zacks Equity Research shares MediaAlpha (MAX - Free Report) , as the Bull of the Day and ArcBest (ARCB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Arm Holdings (ARM - Free Report) , Airbnb (ABNB - Free Report) and The Trade Desk (TTD - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
MediaAlpha is a Zacks Rank #2 (Buy) that has an C for Value and an A for Growth. This programmatic tech platform that specialized in vertical search and metasearch. The company recently posted a big beat and then sold 6.6M shares in an offering. Let’s explore more about this company in this Bull of The Day article.
Description
MediaAlpha, Inc. is a marketing technology company that helps insurance carriers and distributors target and acquire customers through technology and data science. Its technology platform brings insurance carriers and consumers together through a real-time, programmatic, transparent, and results-driven ecosystem. The company was founded by Steven M. Yi, Eugene Nonko, and Ambrose Wang in June 2011 and is headquartered in Los Angeles, CA.
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 MediaAlpha, I see four straight beats of the Zacks Consensus Estimate over the last year. The average positive earnings surprise over the last year works out to be a positive 45%.
The most recent beat had the company posting a loss of 2 cents per share when a loss of 11 cents per share was expected. That translates to a positive earning surprise of 81%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
The consensus estimate for the current quarter jumped from a loss of 13 cents to a gain of 3 cents.
Next quarter has seen the consensus move from a loss of $0.12 to a gain of $0.04.
The full fiscal year 2024 estimate has moved from a loss of $0.40 to a loss of $0.04.
Next year has moved from a loss of $0.21 to a gain of $0.14.
Valuation
The forward PE multiple for MAX is currently an NA on the Zacks website, but if we extend the forward part of the equation out to 2025, the PE comes in at 142x. A forward multiple that is as high as that would normally make investors blush, but the fact is the company is in the process of flipping from posting losses to posting gains.
There is little doubt that if the earnings surprises persist the estimate for 2025 will be much higher by the end of this year. The Zacks site also does not have a price to book multiple but does show a price to sales multiple of 3.6x.
Bear of the Day:
ArcBest is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower after a recent earnings miss. The company is best known for its freight transportation services and solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
ArcBest Corporation provides freight transportation services and solutions. The company's Freight Transportation segment offers transportation of general commodities; motor carrier freight transportation services; business-to-business air transportation services; ocean transport services; global customizable supply chain solutions and integrated warehousing services. Its Premium Logistics & Expedited Freight Services segment provides expedited freight transportation services to commercial and government customers; premium logistics services; and domestic and international freight transportation with air, ocean, and ground service. ArcBest Corporation, formerly known as Arkansas Best Corporation, is headquartered in Fort Smith, Arkansas.
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 ArcBest, I see two beats sandwiched between two misses of the Wall Street Estimate. The most recent quarter was a miss with the company posting $1.34 when $1.54 was expected. 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 ARCB I see annual estimates moving lower of late.
The current year (2024) consensus number moved lower from $10.19 to $8.78 over the last 60 days.
The next year has moved from $12.77 to $11.16 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:
Another Flat Day with Big Afternoon Earnings: ARM, ABNB & More
Markets were flat again yesterday. Over the past week or so of trading, the major indices have been treading water. For the past month, the Dow and the Nasdaq are marginally in the green, while the S&P 500 is marginally in the red and the small-cap Russell 2000 is -0.9%. For Wednesday’s session, the Dow scraped together +172 points, +0.44%, while the S&P was exactly 0.00%. The Nasdaq dipped a tad, -0.18%, while the Russell dropped -0.46%. For the Dow, it’s currently on the most tepid six-day winning streak ever.
Wholesale Inventories for March dropped to -0.4%, the lowest level since -0.5% in June of last year, and swinging to a negative month over month from the downwardly revised +0.2% for February. Lower inventory reads aren’t dire economic prints; in fact, they represent some of the worst growth an economy can have (once inventories are built up, if they do not sell right away, they must be rolled off over time). We’ve only had two positive Wholesale reads in the past year, averaging -2.6% over the past 12 months.
After Wednesday’s close, Arm Holdings reported fiscal Q4 earnings results. The recently re-publicly traded semiconductor design producer outperformed expectations on both top and bottom lines: earnings of 36 cents per share outpaced the Zacks consensus by 6 cents, while top-line sales of $928 million easily surpassed the $885 million analysts were looking for. Next-quarter guidance has been raised to 32-36 cents per share from 31 cents previously, while full-year revenues of between $875-925 million has a higher median than the $882.5 million estimate. Yet shares sold off -6% in late trading; that’s something that can happen when you’re +54% year to date: “sell the news.”
Airbnb shares also sold off following its quarterly results. Earnings of 43 cents per share on $2.14 billion in revenues shone past the 23 cents per share and $2.07 billion analysts were looking for. But revenues estimates for the current quarter came in at $2.68-2.74 billion, below the previous target of $2.76 billion in the Zacks consensus. It marks the twelfth-straight earnings outperformance for the home-stay experiences provider, but shares still slid -8% in late trading.
The Trade Desk also beat on top and bottom lines yesterday afternoon. The demand-side automation platform beat estimates by four cents to 26 cents per share (and above the 23 cents per share posted a year ago), while sales of $491 million amounts to a +28% positive surprise from $480 million expected. Revenues for the current quarter are anticipated to come in at $575 million or more, easily beating expectations for $570 million. Shares are up nearly +2% in the late session, adding to its +21% growth year to date.
Questions or comments about this article and/or author? Click here>>
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Today you can access their live picks without cost or obligation.
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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.