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ScanSource, Hain Celestial, MGM Resorts, Caesars Entertainment and Genius Sports highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – September 7, 2021 – Zacks Equity Research Shares of ScanSource, Inc. (SCSC - Free Report) as the Bull of the Day, The Hain Celestial Group, Inc. (HAIN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on MGM Resorts International (MGM - Free Report) , Caesars Entertainment, Inc. (CZR - Free Report) and Genius Sports Limited (GENI - Free Report) .
After a long holiday weekend, the market looks bid heading into this morning's action. That can make anyone feel like Warren Buffet. Over the long run, it is the stocks with steady earnings which will outperform those that can't seem to make a buck. One way to uncover stocks with steady earnings is by leaning on the time-tested power of the Zacks Rank. Stocks which are Zacks Rank #1 (Strong Buy) have a good chance of keeping the earnings flowing.
Today's Bull of the Day is one such stock. I am talking about ScanSource. ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. It operates in two segments, Worldwide Barcode, Networking & Security; and Worldwide Communications & Services.
The reason for the favorable Zacks Rank is the recent earnings estimate revisions coming to the upside. Over the last thirty days, analysts have increased their earnings estimates for the current quarter, next quarter and the current year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current quarter from 66 cents to 75 cents, next quarter from 78 cents to 83 and the current year from $2.77 to $3.14. That sets current year EPS growth at 14.6% while next year is currently estimated to grow by 17.68%.
Those positive revisions, along with a series of quarterly earnings beats have helped the stock rally dramatically. Going back to late August 2020, the company beat earnings by 35.71% when the stock was trading down at $20.48. Since then, five consecutive quarterly earnings beats along with upside revisions have helped the stock to rally up to $37.56 as of the close on September 3rd.
Today's Bear of the Day is a stock that used to be a favorite among traders. This stock rocketed highs from a low near $15 at the start of 2019, tripling to $45 in Q1 of 2021. Everything looked great as earnings revisions kept coming in to the upside. However, a disturbing trend has popped up recently as the stock has rolled over. Those estimates have been moving in a negative direction.
Those negative earnings estimate revisions are what's making the stock a Zacks Rank #5 (Strong Sell). I'm talking about The Hain Celestial Group. The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, and internationally. It operates through two segments, North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; and condiments. It also provides cooking and culinary oils; cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts, chilis, chocolate, and nut butters; and juices.
Over the last thirty days, analysts have cut their estimates for the current year and next year. Those negative revisions have cut our Zacks Consensus Estimate dramatically. Current year consensus estimates have come down from $1.65 to $1.58 while next year's number is off from $1.94 to $1.78. Part of the reason for the bearish move is a reaction to the most recent quarterly earnings report wher4e the company missed expectations on the EPS side by a penny.
Still, there is earnings growth for the company, bringing about some potential positivity. Current year EPS estimates call for 8.97% growth for this year and 12.53% for next year. That could mean that the end of the negative revisions is right around the corner and the stock is due for a bounce. It has come down to the $37 handle from $45.
The Food – Miscellaneous industry ranks in the Bottom 30% of our Zacks Industry Rank.
Additional content:
3 Stocks to Watch as Football Season Grips America
The football frenzy is going to grip Americans with the National Football League (NFL) set to kick-start the season on Sep 9, 2021 and last through Jan 9, 2022.
While watching their favorite game, Americans will also indulge in betting on the match outcomes, capitalizing on the opportunity of minting money legally.
The NFL season is a phase when sports betting sees a huge surge, given that the same has historically been the favourite pastime for Americans. Now after betting became legalized in 2018 via a Supreme Court ruling, the overall participation, especially among the younger fans has risen over time.
The legalization of online sports betting led to a new revenue source for the sports industry. More than two dozen US states already legalized the same and more are soon to follow suit.
Despite online betting still being in a nascent stage , the market is growing fast. Per H2 Gambling Capital, the U.S. sports betting market is projected to generate an estimated $8 billion in gross gaming revenue in 2025, increased from just an estimated $2 billion in 2020.
For the upcoming football fever, prediction remains bullish. Per a study by the US online gaming outlet PlayUSA, punters could place more than $20 billion at stake on the NFL and college soccer during the 2021 season.
Wider accessibility and social acceptance of sports betting place the dealers in this domain in a sweet spot. By the end of 2023, 37 states are expected to legalize sports betting and generate total collective betting revenues worth $6 billion.
Against this backdrop, we choose three companies, which should be retained for the long haul, given their exposure to sports betting business. Each of these stocks carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks to Retain
MGM Resorts International is a global entertainment company with properties in the United States and Macau comprising hotels and casinos, conference spaces, restaurants, shops and live entertainment.
Given the vast opportunity offered by online gambling, the company is expanding its market share in the said space via BetMGM. It is the exclusive sports betting platform of MGM. Ever since its launch in 2018, BetMGM has done extremely well and is now operating in 12 states.
BetMGM is the number two operator nationwide and its market share in live markets increased to 24%. It continues to be a leader in the iGaming space with its market share reaching 30% in second-quarter 2021. BetMGM is on track to rake in $1 billion net revenues by 2022, up significantly from $178 million recognized in 2020. Year to date the stock is up 35.1%.
Caesars Entertainment expanded its share in sports betting and online gaming in the United States with the acquisition of sports betting company William Hill in April this year. The combined entity currently runs sports betting in 18 jurisdictions within the country, leading 13 of which offer mobile sports betting. The company expects to be operational in 20 U.S. jurisdictions by the end of 2021.
It plans to rebrand the sportsbooks at its properties as Caesars Sportsbook and integrate the Caesars Sports app with the Caesars Rewards database. Recently, the company launched the Caesars Sportsbook app in Arizona for downloading and depositing purposes to cash in on the NFL event. Also, a single wallet product is in the pipeline. Nonetheless, we believe that the closure and non-US divestiture of William Hill represent a fully-integrated digital gaming opportunity for the company in the longer term. Year to date the stock is up 39.3%.
Another stock worth holding is Genius Sports, which provides high quality, live sports data, indispensable for sports betting. The company supplies live data to more than 300 sportsbook brands worldwide with the likes of Fanduel, Betfair, PaddyPower and Sky Bet (all Flutter), BetMGM, Ladbrokes and Coral (all GVC/Entain), DraftKings, bet365, William Hill, 888 and others. None of these sportsbooks currently takes Genius' entire product offerings and so these integrations provide a clear opportunity of growth.
Genius established long-term relationships with popular leagues, such as the NFL, EPL, NBA, NCAA, PGA, FIBA, FIFA and Serie A, which provide it with the rights to collect and monetize their data.
Its long-term contracts guarantee minimum payments throughout the life of the term (typically 3-5 years), which allow good earnings visibility.
Genius' contracts are also structured with upside levers that help it benefit as its partner's business expands. The company is clearly aligned with growth of sport betting. Year to date the stock is up 19.9%.
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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ScanSource, Hain Celestial, MGM Resorts, Caesars Entertainment and Genius Sports highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 7, 2021 – Zacks Equity Research Shares of ScanSource, Inc. (SCSC - Free Report) as the Bull of the Day, The Hain Celestial Group, Inc. (HAIN - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on MGM Resorts International (MGM - Free Report) , Caesars Entertainment, Inc. (CZR - Free Report) and Genius Sports Limited (GENI - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
After a long holiday weekend, the market looks bid heading into this morning's action. That can make anyone feel like Warren Buffet. Over the long run, it is the stocks with steady earnings which will outperform those that can't seem to make a buck. One way to uncover stocks with steady earnings is by leaning on the time-tested power of the Zacks Rank. Stocks which are Zacks Rank #1 (Strong Buy) have a good chance of keeping the earnings flowing.
Today's Bull of the Day is one such stock. I am talking about ScanSource. ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. It operates in two segments, Worldwide Barcode, Networking & Security; and Worldwide Communications & Services.
The reason for the favorable Zacks Rank is the recent earnings estimate revisions coming to the upside. Over the last thirty days, analysts have increased their earnings estimates for the current quarter, next quarter and the current year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current quarter from 66 cents to 75 cents, next quarter from 78 cents to 83 and the current year from $2.77 to $3.14. That sets current year EPS growth at 14.6% while next year is currently estimated to grow by 17.68%.
Those positive revisions, along with a series of quarterly earnings beats have helped the stock rally dramatically. Going back to late August 2020, the company beat earnings by 35.71% when the stock was trading down at $20.48. Since then, five consecutive quarterly earnings beats along with upside revisions have helped the stock to rally up to $37.56 as of the close on September 3rd.
Bear of the Day:
Today's Bear of the Day is a stock that used to be a favorite among traders. This stock rocketed highs from a low near $15 at the start of 2019, tripling to $45 in Q1 of 2021. Everything looked great as earnings revisions kept coming in to the upside. However, a disturbing trend has popped up recently as the stock has rolled over. Those estimates have been moving in a negative direction.
Those negative earnings estimate revisions are what's making the stock a Zacks Rank #5 (Strong Sell). I'm talking about The Hain Celestial Group. The Hain Celestial Group, Inc. manufactures, markets, and sells organic and natural products in United States, United Kingdom, and internationally. It operates through two segments, North America and International. The company offers infant formula; infant, toddler, and kids' food; plant-based beverages and frozen desserts, such as soy, rice, oat, almond, and coconut; and condiments. It also provides cooking and culinary oils; cereal bars; canned, chilled fresh, aseptic, and instant soups; yogurts, chilis, chocolate, and nut butters; and juices.
Over the last thirty days, analysts have cut their estimates for the current year and next year. Those negative revisions have cut our Zacks Consensus Estimate dramatically. Current year consensus estimates have come down from $1.65 to $1.58 while next year's number is off from $1.94 to $1.78. Part of the reason for the bearish move is a reaction to the most recent quarterly earnings report wher4e the company missed expectations on the EPS side by a penny.
Still, there is earnings growth for the company, bringing about some potential positivity. Current year EPS estimates call for 8.97% growth for this year and 12.53% for next year. That could mean that the end of the negative revisions is right around the corner and the stock is due for a bounce. It has come down to the $37 handle from $45.
The Food – Miscellaneous industry ranks in the Bottom 30% of our Zacks Industry Rank.
Additional content:
3 Stocks to Watch as Football Season Grips America
The football frenzy is going to grip Americans with the National Football League (NFL) set to kick-start the season on Sep 9, 2021 and last through Jan 9, 2022.
While watching their favorite game, Americans will also indulge in betting on the match outcomes, capitalizing on the opportunity of minting money legally.
The NFL season is a phase when sports betting sees a huge surge, given that the same has historically been the favourite pastime for Americans. Now after betting became legalized in 2018 via a Supreme Court ruling, the overall participation, especially among the younger fans has risen over time.
The legalization of online sports betting led to a new revenue source for the sports industry. More than two dozen US states already legalized the same and more are soon to follow suit.
Despite online betting still being in a nascent stage , the market is growing fast. Per H2 Gambling Capital, the U.S. sports betting market is projected to generate an estimated $8 billion in gross gaming revenue in 2025, increased from just an estimated $2 billion in 2020.
For the upcoming football fever, prediction remains bullish. Per a study by the US online gaming outlet PlayUSA, punters could place more than $20 billion at stake on the NFL and college soccer during the 2021 season.
Wider accessibility and social acceptance of sports betting place the dealers in this domain in a sweet spot. By the end of 2023, 37 states are expected to legalize sports betting and generate total collective betting revenues worth $6 billion.
Against this backdrop, we choose three companies, which should be retained for the long haul, given their exposure to sports betting business. Each of these stocks carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
3 Stocks to Retain
MGM Resorts International is a global entertainment company with properties in the United States and Macau comprising hotels and casinos, conference spaces, restaurants, shops and live entertainment.
Given the vast opportunity offered by online gambling, the company is expanding its market share in the said space via BetMGM. It is the exclusive sports betting platform of MGM. Ever since its launch in 2018, BetMGM has done extremely well and is now operating in 12 states.
BetMGM is the number two operator nationwide and its market share in live markets increased to 24%. It continues to be a leader in the iGaming space with its market share reaching 30% in second-quarter 2021. BetMGM is on track to rake in $1 billion net revenues by 2022, up significantly from $178 million recognized in 2020. Year to date the stock is up 35.1%.
Caesars Entertainment expanded its share in sports betting and online gaming in the United States with the acquisition of sports betting company William Hill in April this year. The combined entity currently runs sports betting in 18 jurisdictions within the country, leading 13 of which offer mobile sports betting. The company expects to be operational in 20 U.S. jurisdictions by the end of 2021.
It plans to rebrand the sportsbooks at its properties as Caesars Sportsbook and integrate the Caesars Sports app with the Caesars Rewards database. Recently, the company launched the Caesars Sportsbook app in Arizona for downloading and depositing purposes to cash in on the NFL event. Also, a single wallet product is in the pipeline. Nonetheless, we believe that the closure and non-US divestiture of William Hill represent a fully-integrated digital gaming opportunity for the company in the longer term. Year to date the stock is up 39.3%.
Another stock worth holding is Genius Sports, which provides high quality, live sports data, indispensable for sports betting. The company supplies live data to more than 300 sportsbook brands worldwide with the likes of Fanduel, Betfair, PaddyPower and Sky Bet (all Flutter), BetMGM, Ladbrokes and Coral (all GVC/Entain), DraftKings, bet365, William Hill, 888 and others. None of these sportsbooks currently takes Genius' entire product offerings and so these integrations provide a clear opportunity of growth.
Genius established long-term relationships with popular leagues, such as the NFL, EPL, NBA, NCAA, PGA, FIBA, FIFA and Serie A, which provide it with the rights to collect and monetize their data.
Its long-term contracts guarantee minimum payments throughout the life of the term (typically 3-5 years), which allow good earnings visibility.
Genius' contracts are also structured with upside levers that help it benefit as its partner's business expands. The company is clearly aligned with growth of sport betting. Year to date the stock is up 19.9%.
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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.