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Archer Daniels Midland and DR Horton have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – January 11, 2023 – Zacks Equity Research shares Archer Daniels Midland (ADM - Free Report) as the Bull of the Day and DR Horton (DHI - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Uber Technologies (UBER - Free Report) , Lyft (LYFT - Free Report) and Baidu (BIDU - Free Report) .
Inflation has hit many parts of the world. You can see it in everything from wages to houses to cars to food prices. Rather than get down on the inflationary blues, why not invest in the stocks which are benefiting from the trend. It’s not stocks like the tech stocks that led the way previously which you should be looking at. Where can you find them?
Leaning on the Zacks Rank allows you to uncover stocks with the strongest earnings trends. These earnings trends can show you what’s happening beneath the surface of many publicly traded companies. One such stock is today’s Bull of the Day, Archer Daniels Midland.
Incorporated in Delaware in 1923, Archer Daniels Midland Company is successor to the Daniels Linseed Co. Founded in 1902, this Illinois-based company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products.
The company processes oilseeds, corn, wheat, cocoa and other feedstuffs. Moreover, it engages in the manufacturing, sale, and distribution of products like natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products as well as other specialty food and feed ingredients.
Archer Daniels Midland is a Zacks Rank #1 (Strong Buy) which also enjoys a Zacks Value Style Score of A, Growth of A and Momentum of A to help it round out with a VGM Composite Score of A. The reason for the favorable rank is that analysts have been upping the ante for both this year and next year. While EPS growth is currently forecast to come in at 44% this year, there is a contraction for next year. However, over the last 90 days, our Zacks Consensus Estimate for the current year is up from $6.89 to $7.48 while next year’s number is up from $5.98 to $6.36.
Housing has been one of the main benefactors of the inflationary surge. There was a perfect storm which sent parts of the country absolutely through the roof. Now, with interest rates on the rise, some areas of the country are beginning to feel the pinch. The good news for many is that they are locked in very low rates and are in a home they can stay in forever. The bad news is, it could make it tough for new buyers entering the market.
Already, we are seeing earnings estimates come down for some of the homebuilders. That is why today’s Bear of the Day is DR Horton. D.R. Horton, Inc., based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. D.R. Horton’s operations are spread across 106 markets in 33 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. Its houses are sold under the brand names D.R. Horton - America’s Builder, Emerald Homes, Express Homes and Freedom Homes.
DR Horton is currently a Zacks Rank #5 (Strong Sell) in the Building Products – Home Builders industry which ranks in the Bottom 6% of our Zacks Industry Rank. The reason for the unfavorable rank is that seven analysts have cut their estimates for the current year while four have done so for next year. The impact has cut our Zacks Consensus Estimate for the current year from $13.42 to $9.33 while next year’s number is off from $13.91 to $9.54.
Additional content:
UBER Benefits from Favorable Court Ruling
Shares of Uber Technologies have been performing well in the markets lately, gaining 7.2% over the past two trading sessions. The upside can be attributed to a verdict issued by a New York City judge prohibiting pay raises for ride-sharing companies. The hikes were demanded by New York City's Taxi and Limousine Commission.
The ruling vindicates Uber’s stand. It had sued the commission last month to try to block a significant pay increase for its drivers. Uber found the proposed increases unprecedented.
In the lawsuit, Uber had stated last month that in the event of an unfavorable court ruling it would be forced to incur additional monthly cost in the band of $21-$23 million. In turn, Uber would have had to raise fares to drive its bottom line.
Given this backdrop, the judge’s ruling has come as a boon for Uber. No wonder, its shares are rising.
The ruling, which has prevented labor costs of ride sharing companies from increasing significantly, has also positively impacted the stock price of Uber’s rival Lyft. Shares of Lyft have risen 11.8% over the past two trading days.
Following the judge’s ruling, the New York Taxi Workers Alliance, which represents 25,000 taxi drivers in the city, tweeted, "A few missing words in a Statement of Basis and Purpose does not justify denying a raise meant to help thousands of drivers with rent and groceries. Shame on Uber for spending millions on this heartless lawsuit only to deny drivers an increase of $1.66 more on an average trip."
The alliance wants the New York City's Taxi and Limousine Commission to tweak the rules in such a manner that in the future the ruling is in favor of a pay hike for drivers. Consequently, we expect investors to remain glued for further updates on this burning issue.
Zacks Rank & Key Pick
Currently, Uber carries a Zacks Rank #4 (Sell), while Lyft is Zacks #3 Ranked (Hold).
BIDU offers a Chinese language search platform with a network of third-party websites and software applications.
BIDU has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 50.2%.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. 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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Archer Daniels Midland and DR Horton have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – January 11, 2023 – Zacks Equity Research shares Archer Daniels Midland (ADM - Free Report) as the Bull of the Day and DR Horton (DHI - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Uber Technologies (UBER - Free Report) , Lyft (LYFT - Free Report) and Baidu (BIDU - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Inflation has hit many parts of the world. You can see it in everything from wages to houses to cars to food prices. Rather than get down on the inflationary blues, why not invest in the stocks which are benefiting from the trend. It’s not stocks like the tech stocks that led the way previously which you should be looking at. Where can you find them?
Leaning on the Zacks Rank allows you to uncover stocks with the strongest earnings trends. These earnings trends can show you what’s happening beneath the surface of many publicly traded companies. One such stock is today’s Bull of the Day, Archer Daniels Midland.
Incorporated in Delaware in 1923, Archer Daniels Midland Company is successor to the Daniels Linseed Co. Founded in 1902, this Illinois-based company is one of the leading producers of food and beverage ingredients as well as goods made from various agricultural products.
The company processes oilseeds, corn, wheat, cocoa and other feedstuffs. Moreover, it engages in the manufacturing, sale, and distribution of products like natural flavor ingredients, flavor systems, natural colors, proteins, emulsifiers, soluble fiber, polyols, hydrocolloids, natural health and nutrition products as well as other specialty food and feed ingredients.
Archer Daniels Midland is a Zacks Rank #1 (Strong Buy) which also enjoys a Zacks Value Style Score of A, Growth of A and Momentum of A to help it round out with a VGM Composite Score of A. The reason for the favorable rank is that analysts have been upping the ante for both this year and next year. While EPS growth is currently forecast to come in at 44% this year, there is a contraction for next year. However, over the last 90 days, our Zacks Consensus Estimate for the current year is up from $6.89 to $7.48 while next year’s number is up from $5.98 to $6.36.
Bear of the Day:
Housing has been one of the main benefactors of the inflationary surge. There was a perfect storm which sent parts of the country absolutely through the roof. Now, with interest rates on the rise, some areas of the country are beginning to feel the pinch. The good news for many is that they are locked in very low rates and are in a home they can stay in forever. The bad news is, it could make it tough for new buyers entering the market.
Already, we are seeing earnings estimates come down for some of the homebuilders. That is why today’s Bear of the Day is DR Horton. D.R. Horton, Inc., based in Texas, is one of the leading national homebuilders, primarily engaged in the construction and sale of single-family houses both in the entry-level and move-up markets. D.R. Horton’s operations are spread across 106 markets in 33 states in the East, Midwest, Southeast, South Central, Southwest and West regions of the United States. Its houses are sold under the brand names D.R. Horton - America’s Builder, Emerald Homes, Express Homes and Freedom Homes.
DR Horton is currently a Zacks Rank #5 (Strong Sell) in the Building Products – Home Builders industry which ranks in the Bottom 6% of our Zacks Industry Rank. The reason for the unfavorable rank is that seven analysts have cut their estimates for the current year while four have done so for next year. The impact has cut our Zacks Consensus Estimate for the current year from $13.42 to $9.33 while next year’s number is off from $13.91 to $9.54.
Additional content:
UBER Benefits from Favorable Court Ruling
Shares of Uber Technologies have been performing well in the markets lately, gaining 7.2% over the past two trading sessions. The upside can be attributed to a verdict issued by a New York City judge prohibiting pay raises for ride-sharing companies. The hikes were demanded by New York City's Taxi and Limousine Commission.
The judge while delivering his verdict against the commission stated that it had used a faulty methodology to calculate the pay hike. The commission had used factors like the last summer’s steep increase in gas prices, which has come down since.
The ruling vindicates Uber’s stand. It had sued the commission last month to try to block a significant pay increase for its drivers. Uber found the proposed increases unprecedented.
In the lawsuit, Uber had stated last month that in the event of an unfavorable court ruling it would be forced to incur additional monthly cost in the band of $21-$23 million. In turn, Uber would have had to raise fares to drive its bottom line.
Given this backdrop, the judge’s ruling has come as a boon for Uber. No wonder, its shares are rising.
The ruling, which has prevented labor costs of ride sharing companies from increasing significantly, has also positively impacted the stock price of Uber’s rival Lyft. Shares of Lyft have risen 11.8% over the past two trading days.
Following the judge’s ruling, the New York Taxi Workers Alliance, which represents 25,000 taxi drivers in the city, tweeted, "A few missing words in a Statement of Basis and Purpose does not justify denying a raise meant to help thousands of drivers with rent and groceries. Shame on Uber for spending millions on this heartless lawsuit only to deny drivers an increase of $1.66 more on an average trip."
The alliance wants the New York City's Taxi and Limousine Commission to tweak the rules in such a manner that in the future the ruling is in favor of a pay hike for drivers. Consequently, we expect investors to remain glued for further updates on this burning issue.
Zacks Rank & Key Pick
Currently, Uber carries a Zacks Rank #4 (Sell), while Lyft is Zacks #3 Ranked (Hold).
Investors interested in the Internet-Services industry may, however, consider Baidu, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
BIDU offers a Chinese language search platform with a network of third-party websites and software applications.
BIDU has a stellar earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average being 50.2%.
Why Haven’t You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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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.