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Nucor and Kimberly-Clark have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – February 10, 2023 – Zacks Equity Research shares Nucor Corp. (NUE - Free Report) as the Bull of the Day and Kimberly-Clark (KMB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Netflix (NFLX - Free Report) , Meta Platforms (META - Free Report) and Uber Technologies (UBER - Free Report) .
The Zacks Steel – Producers industry is currently ranked in the top 8% (21 out of 250) of all Zacks Industries.
And as we’re all aware, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A company residing in the industry and a part of the Zacks Basic Materials sector, Nucor Corp., has seen its near-term earnings outlook shift positively across all timeframes over the last 60 days.
Nucor is a leading producer of structural steel, steel bars, steel joists, steel deck, and cold-finished bars in the United States.
How does the company currently shape up? Let’s take a closer look.
Share Performance
Nucor shares have been hot year-to-date, tacking on nearly 25% in value and crushing the S&P 500’s impressive 7.5% gain.
And over the last year, Nucor shares have gained 37%, again crushing the S&P 500’s performance.
The positive price action within shares tells us that buyers have been active, something that was a rarity for most stocks over the last year.
Quarterly Results
Nucor has consistently exceeded quarterly expectations, exceeding both earnings and revenue expectations in four consecutive quarters.
Just in its latest release on January 26th, Nucor penciled in a steep 17% earnings surprise and reported sales more than 10% above expectations.
Dividends & Cash Flow
Many stocks in the Zacks Basic Materials sector pay dividends, and Nucor is no different; NUE’s annual dividend currently yields 1.2% paired with a sustainable payout ratio sitting at 6% of its earnings.
While the yield is below the sector average, Nucor’s 6.2% five-year annualized dividend growth rate helps to fill the gap.
Further, Nucor has been a cash-generating machine as of late, posting free cash flow of $2 billion in its latest quarterly release.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Nucor would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Stocks have gotten off a solid start in 2023, undoubtedly a welcomed development following a brutal 2022.
The feared earnings “apocalypse” has yet to materialize, helping keep the market afloat. In addition, many stocks are now seeing their earnings outlooks drift higher.
However, one big-time name in the Zacks Consumer Staples sector, Kimberly-Clark, has seen its near-term earnings outlook come under pressure as of late, pushing the stock into a Zacks Rank #5 (Strong Sell).
Kimberly-Clark is principally engaged in manufacturing and marketing a wide range of consumer products worldwide. KMB operates three business segments: Personal Care, Consumer Tissue, and K-C Professional.
Let’s take a closer glance at the company.
Share Performance
Kimberly-Clark shares have struggled to find buyers year-to-date, down more than 5% and widely underperforming relative to the S&P 500.
Still, over the last year, KMB shares are hanging onto a 1.5% gain, easily beating the S&P 500 in the same period.
Buyers have backed off following a big run-up from October 2022 to mid-December 2022.
Quarterly Performance
KMB has primarily posted mixed bottom line results, falling short of the Zacks Consensus EPS Estimate in six of its last ten quarters.
Still, revenue results have been much better, with Kimberly-Clark exceeding sales expectations in six consecutive quarters.
Dividends
The stock does pay a dividend, currently yielding 3.6% annually.
In addition, the company has shown a commitment to increasingly rewarding its shareholders, carrying a 4% five-year annualized dividend growth rate.
Bottom Line
Mixed bottom line results and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Kimberly-Clark is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
3 Big Surprises of Q3 Earnings Season So Far
Imagine this –
Once every few months, you’re required to release information detailing your current financial standing. The public can see where you’ve spent money, made money, or even how much you’ve saved.
Sounds scary, right?
That’s just a different way of describing what earnings season is.
So far, this earnings season has turned out better than feared, helping to keep the market afloat following a brutal 2022.
And there have been several big surprises, including those from Netflix, Meta Platforms and Uber Technologies.
Let’s take a closer look at what each company delivered.
Uber Technologies Sets Quarterly Trips Record
Uber posted better-than-expected quarterly results, crushing the Zacks Consensus EPS Estimate by 240% and reporting earnings of $0.29 per share.
Uber generated roughly $8.6 billion in revenue throughout the period, surpassing our consensus estimate marginally and growing nearly 50% year-over-year.
There were also other several notable highlights, including –
Gross Bookings totaled $30.7 billion, growing an impressive 19% year-over-year and exceeding our consensus estimate by nearly 0.6%. This is illustrated in the chart below.
Further, total trips throughout Q4 tallied 2.1 billion, representing a quarterly record and growing nearly 20% year-over-year. In addition, the total beat our consensus estimate by roughly 1.5%.
And to top it off, Uber posted adjusted EBITDA of $665 million, growing $579 million from the year-ago quarter.
Dara Khosrowshahi, CEO, on the results, “We ended 2022 with our strongest quarter ever, with robust demand and record margins,” He continued, “Our outlook for a Gross Bookings and Adjusted EBITDA step up in Q1 builds on that progress, and sets us up for yet another record year."
Netflix Crushes Subscriber Estimates
Netflix reported mixed top and bottom line results, falling short of the Zacks Consensus EPS Estimate by roughly 75%.
Quarterly revenue totaled $7.8 billion, modestly ahead of estimates and growing 2% year-over-year.
However, the focus point of the entire release remained the company’s Net Subscriber Additions.
Results came in well above expectations; Netflix reported Net Subscriber Adds of roughly 7.7 million, handily beating our consensus estimate of 4.5 million by nearly 70%.
It represented the company’s third consecutive quarter exceeding our consensus estimate for Net Subscriber Additions, undoubtedly a major positive.
The market cheered on the better-than-expected Subscriber Additions, with Netflix shares climbing nearly 9% the following trading session.
Meta Platforms Cuts Expenses
The market was impressed with META’s quarterly report, with the company exceeding the Zacks Consensus EPS Estimate by more than 40%.
In addition, quarterly revenue tallied $32.2 billion, again exceeding expectations by roughly 3%.
Of course, there were also some key developments, including –
The company unveiled a massive $40 billion share buyback program to increase shareholder value.
Most importantly, the company revealed some cost-cutting measures. As many are aware, investors were critical of META’s capital expenditures (CapEx), especially during a challenging 2022 business environment.
Nonetheless, the company expects full-year 2023 total expenses in a range of $89 billion – $95 billion, down from prior views of $94 billion – $100 billion.
Further, META expects CapEx in a range of $30 billion – $33 billion for full-year 2023, again down from prior expectations of $34 billion – $37 billion.
Bottom Line
Earnings season continues to chug along, with many companies reporting daily.
And in the coming weeks, just as many are slated to do the same.
Several companies, including Netflix, Meta and Uber, have stolen the show so far, reporting results that had investors celebrating.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% 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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Nucor and Kimberly-Clark have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – February 10, 2023 – Zacks Equity Research shares Nucor Corp. (NUE - Free Report) as the Bull of the Day and Kimberly-Clark (KMB - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Netflix (NFLX - Free Report) , Meta Platforms (META - Free Report) and Uber Technologies (UBER - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
The Zacks Steel – Producers industry is currently ranked in the top 8% (21 out of 250) of all Zacks Industries.
And as we’re all aware, 50% of a stock's price movement can be attributed to its group, making it clear why it’s critical for investors to target stocks in a thriving industry.
A company residing in the industry and a part of the Zacks Basic Materials sector, Nucor Corp., has seen its near-term earnings outlook shift positively across all timeframes over the last 60 days.
Nucor is a leading producer of structural steel, steel bars, steel joists, steel deck, and cold-finished bars in the United States.
How does the company currently shape up? Let’s take a closer look.
Share Performance
Nucor shares have been hot year-to-date, tacking on nearly 25% in value and crushing the S&P 500’s impressive 7.5% gain.
And over the last year, Nucor shares have gained 37%, again crushing the S&P 500’s performance.
The positive price action within shares tells us that buyers have been active, something that was a rarity for most stocks over the last year.
Quarterly Results
Nucor has consistently exceeded quarterly expectations, exceeding both earnings and revenue expectations in four consecutive quarters.
Just in its latest release on January 26th, Nucor penciled in a steep 17% earnings surprise and reported sales more than 10% above expectations.
Dividends & Cash Flow
Many stocks in the Zacks Basic Materials sector pay dividends, and Nucor is no different; NUE’s annual dividend currently yields 1.2% paired with a sustainable payout ratio sitting at 6% of its earnings.
While the yield is below the sector average, Nucor’s 6.2% five-year annualized dividend growth rate helps to fill the gap.
Further, Nucor has been a cash-generating machine as of late, posting free cash flow of $2 billion in its latest quarterly release.
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Nucor would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Stocks have gotten off a solid start in 2023, undoubtedly a welcomed development following a brutal 2022.
The feared earnings “apocalypse” has yet to materialize, helping keep the market afloat. In addition, many stocks are now seeing their earnings outlooks drift higher.
However, one big-time name in the Zacks Consumer Staples sector, Kimberly-Clark, has seen its near-term earnings outlook come under pressure as of late, pushing the stock into a Zacks Rank #5 (Strong Sell).
Kimberly-Clark is principally engaged in manufacturing and marketing a wide range of consumer products worldwide. KMB operates three business segments: Personal Care, Consumer Tissue, and K-C Professional.
Let’s take a closer glance at the company.
Share Performance
Kimberly-Clark shares have struggled to find buyers year-to-date, down more than 5% and widely underperforming relative to the S&P 500.
Still, over the last year, KMB shares are hanging onto a 1.5% gain, easily beating the S&P 500 in the same period.
Buyers have backed off following a big run-up from October 2022 to mid-December 2022.
Quarterly Performance
KMB has primarily posted mixed bottom line results, falling short of the Zacks Consensus EPS Estimate in six of its last ten quarters.
Still, revenue results have been much better, with Kimberly-Clark exceeding sales expectations in six consecutive quarters.
Dividends
The stock does pay a dividend, currently yielding 3.6% annually.
In addition, the company has shown a commitment to increasingly rewarding its shareholders, carrying a 4% five-year annualized dividend growth rate.
Bottom Line
Mixed bottom line results and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Kimberly-Clark is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.
Additional content:
3 Big Surprises of Q3 Earnings Season So Far
Imagine this –
Once every few months, you’re required to release information detailing your current financial standing. The public can see where you’ve spent money, made money, or even how much you’ve saved.
Sounds scary, right?
That’s just a different way of describing what earnings season is.
So far, this earnings season has turned out better than feared, helping to keep the market afloat following a brutal 2022.
And there have been several big surprises, including those from Netflix, Meta Platforms and Uber Technologies.
Let’s take a closer look at what each company delivered.
Uber Technologies Sets Quarterly Trips Record
Uber posted better-than-expected quarterly results, crushing the Zacks Consensus EPS Estimate by 240% and reporting earnings of $0.29 per share.
Uber generated roughly $8.6 billion in revenue throughout the period, surpassing our consensus estimate marginally and growing nearly 50% year-over-year.
There were also other several notable highlights, including –
Gross Bookings totaled $30.7 billion, growing an impressive 19% year-over-year and exceeding our consensus estimate by nearly 0.6%. This is illustrated in the chart below.
Further, total trips throughout Q4 tallied 2.1 billion, representing a quarterly record and growing nearly 20% year-over-year. In addition, the total beat our consensus estimate by roughly 1.5%.
And to top it off, Uber posted adjusted EBITDA of $665 million, growing $579 million from the year-ago quarter.
Dara Khosrowshahi, CEO, on the results, “We ended 2022 with our strongest quarter ever, with robust demand and record margins,” He continued, “Our outlook for a Gross Bookings and Adjusted EBITDA step up in Q1 builds on that progress, and sets us up for yet another record year."
Netflix Crushes Subscriber Estimates
Netflix reported mixed top and bottom line results, falling short of the Zacks Consensus EPS Estimate by roughly 75%.
Quarterly revenue totaled $7.8 billion, modestly ahead of estimates and growing 2% year-over-year.
However, the focus point of the entire release remained the company’s Net Subscriber Additions.
Results came in well above expectations; Netflix reported Net Subscriber Adds of roughly 7.7 million, handily beating our consensus estimate of 4.5 million by nearly 70%.
It represented the company’s third consecutive quarter exceeding our consensus estimate for Net Subscriber Additions, undoubtedly a major positive.
The market cheered on the better-than-expected Subscriber Additions, with Netflix shares climbing nearly 9% the following trading session.
Meta Platforms Cuts Expenses
The market was impressed with META’s quarterly report, with the company exceeding the Zacks Consensus EPS Estimate by more than 40%.
In addition, quarterly revenue tallied $32.2 billion, again exceeding expectations by roughly 3%.
Of course, there were also some key developments, including –
The company unveiled a massive $40 billion share buyback program to increase shareholder value.
Most importantly, the company revealed some cost-cutting measures. As many are aware, investors were critical of META’s capital expenditures (CapEx), especially during a challenging 2022 business environment.
Nonetheless, the company expects full-year 2023 total expenses in a range of $89 billion – $95 billion, down from prior views of $94 billion – $100 billion.
Further, META expects CapEx in a range of $30 billion – $33 billion for full-year 2023, again down from prior expectations of $34 billion – $37 billion.
Bottom Line
Earnings season continues to chug along, with many companies reporting daily.
And in the coming weeks, just as many are slated to do the same.
Several companies, including Netflix, Meta and Uber, have stolen the show so far, reporting results that had investors celebrating.
Why Haven’t You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
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https://www.zacks.com
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.