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Amazon and The Estee Lauder have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – October 11, 2023 – Zacks Equity Research shares Amazon (AMZN - Free Report) as the Bull of the Day and The Estee Lauder Companies (EL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Domino's Pizza, Inc. (DPZ - Free Report) , McDonald's Corp. (MCD - Free Report) and Chipotle Mexican Grill, Inc. (CMG - Free Report) .
Amazon is one of the most widely-recognized e-commerce giants, with the company also enjoying a dominant space in cloud computing thanks to AWS (Amazon Web Services).
It's one of several stocks that have helped lead the market's surge in 2023, being classified as one of the 'Magnificent Seven.'
Analysts have taken their earnings expectations higher across the board, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
The company resides within the Zacks Internet – Commerce industry, which is currently ranked in the top 26% of all Zacks industries. Roughly half of a stock's movement can be attributed to its group, helping to clarify the importance of targeting industries with favorable current standings.
Aside from the favorable earnings outlook, let's take a closer look at a few other characteristics of Amazon.
Current Standing
As mentioned previously, Amazon shares have been big-time performers in 2023, up more than 50% and widely outperforming the S&P 500's impressive 14% YTD gain on the back of an improved operating environment and a strong consumer.
The company's success in 2023 has been reflected by its quarterly performance, with Amazon exceeding Zacks Consensus EPS and revenue estimates in three consecutive quarters. In its latest print, the market titan delivered an 85% EPS beat and posted revenue 2% ahead of expectations.
The heavyweight is scheduled to reveal its next set of quarterly results near late October. Currently, the Zacks Consensus EPS Estimate of $0.58 suggests a 190% improvement from the year-ago quarter, with our $141.9 billion quarterly revenue estimate implying growth of 11.6% year-over-year.
The revisions trend has been notably bullish for the quarter-to-be-reported, with the $0.58 per share consensus estimate up nearly 50% since July.
In addition, it was recently revealed that Amazon will invest up to $4 billion in Anthropic, an AI safety and research company based in San Francisco and a rival of OpenAI. We're all aware that AI is Wall Street's shiny new toy in 2023, constantly dominating headlines.
The deal reflects a partnership to develop reliable and high-performing foundation models, with AWS now becoming Anthropic's primary cloud provider for critical workloads. Regarding AWS expectations for the upcoming print, the Zacks Consensus Estimate for AWS Net Sales stands at $23.2 billion, 13% higher than the year-ago figure.
The company has recently exceeded consensus expectations for AWS Net Sales in back-to-back releases.
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.
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.
Amazon would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
The Estee Lauder Companies is one of the world's leading manufacturers and marketers of skincare, makeup, fragrance, and hair care products. The company's products are sold through department stores, mass retailers, company-owned retail stores, hair salons, and travel-related establishments.
Analysts have taken a bearish stance on the company's earnings outlook, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
In addition, the stock currently resides in the Zacks – Cosmetics industry, which is currently ranked in the bottom 24% (191 out of 251) of all Zacks Industries. Let's take a closer look at how the company currently stacks up.
Current Standing
Estee Lauder shares have faced adverse price action throughout 2023, down more than 43% year-to-date and widely underperforming relative to the S&P 500. Shares have regularly faced selling pressure following quarterly releases.
Regarding the latest release, the company exceeded consensus expectations handily but delivered weak results compared to the year-ago period; revenue saw 1.4% growth year-over-year, whereas adjusted EPS decreased 80% compared to the same period last year.
The company's shareholder-friendly nature is worth highlighting, with EL sporting an 11% five-year annualized dividend growth rate. Shares presently yield a solid 1.9% annually paired with a payout ratio sitting at 77% of the company's earnings.
The company enters its FY24 with a continued focus on accelerating balanced and profitable growth across regions, brands, product categories, and channels.
Bottom Line
Negative earnings estimate revisions from analysts paint a challenging picture for the company's shares in the near term.
The Estee Lauder Companies is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
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:
What to Expect from Domino's (DPZ - Free Report) Earnings
Domino's Pizza, Inc.is scheduled to report third-quarter 2023 results on Oct 12, before the opening bell. In the last reported quarter, the company's earnings surpassed the Zacks Consensus Estimate by 1.3%.
Q3 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.29 per share, suggesting 17.9% growth from the prior-year quarter. Over the past 60 days, earnings estimates have remained stable. The consensus mark for revenues is pegged at $1.05 billion, indicating a decline of 1.6% from the year-ago reported figure.
Factors to Note
Domino's fiscal third-quarter results are likely to gain from robust same store sales growth, unit expansion, new menu addition and strong digitalization. DPZ continues to benefit from strong carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. However, the company's top line is expected to have been hurt by a decline in sales of U.S. stores and supply-chain revenues.
Our model predicts total U.S. store revenues to dip 0.1% to $355.3 million year over year. Moreover, our model estimates supply-chain revenues to fall 3.3% year over year to $624.7 million.
An ease in inflationary pressure is likely to have aided the company's margin. Our model projects U.S. company-owned stores and supply-chain cost of sales to decrease 23.6% and 4.5% year over year, respectively. We expect gross margin in the quarter under review to be 39.4% compared with 35.7% reported in the prior-year quarter.
What the Zacks Model Unveils
Our proven model doesn't conclusively predict an earnings beat for Domino's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Domino's has an Earnings ESP of -1.92%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Domino's carries a Zacks Rank #3.
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesalespace as our model shows that these too have the right combination of elements to beat on earnings this season.
MCD's earnings beat the consensus mark in all of the trailing four quarters, the average beat being 9.5%. Earnings per share for the to-be-reported quarter are expected to increase 11.6% year over year.
Chipotle Mexican Grill, Inc. currently has an Earnings ESP of +0.37% and a Zacks Rank #3.
CMG's earnings beat the consensus estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.8%, on average. Earnings per share for the to-be-reported quarter are expected to rise 10% year over year.
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/performancefor information about the performance numbers displayed in this press release.
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Amazon and The Estee Lauder have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – October 11, 2023 – Zacks Equity Research shares Amazon (AMZN - Free Report) as the Bull of the Day and The Estee Lauder Companies (EL - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Domino's Pizza, Inc. (DPZ - Free Report) , McDonald's Corp. (MCD - Free Report) and Chipotle Mexican Grill, Inc. (CMG - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Amazon is one of the most widely-recognized e-commerce giants, with the company also enjoying a dominant space in cloud computing thanks to AWS (Amazon Web Services).
It's one of several stocks that have helped lead the market's surge in 2023, being classified as one of the 'Magnificent Seven.'
Analysts have taken their earnings expectations higher across the board, landing the stock into the highly-coveted Zacks Rank #1 (Strong Buy).
The company resides within the Zacks Internet – Commerce industry, which is currently ranked in the top 26% of all Zacks industries. Roughly half of a stock's movement can be attributed to its group, helping to clarify the importance of targeting industries with favorable current standings.
Aside from the favorable earnings outlook, let's take a closer look at a few other characteristics of Amazon.
Current Standing
As mentioned previously, Amazon shares have been big-time performers in 2023, up more than 50% and widely outperforming the S&P 500's impressive 14% YTD gain on the back of an improved operating environment and a strong consumer.
The company's success in 2023 has been reflected by its quarterly performance, with Amazon exceeding Zacks Consensus EPS and revenue estimates in three consecutive quarters. In its latest print, the market titan delivered an 85% EPS beat and posted revenue 2% ahead of expectations.
The heavyweight is scheduled to reveal its next set of quarterly results near late October. Currently, the Zacks Consensus EPS Estimate of $0.58 suggests a 190% improvement from the year-ago quarter, with our $141.9 billion quarterly revenue estimate implying growth of 11.6% year-over-year.
The revisions trend has been notably bullish for the quarter-to-be-reported, with the $0.58 per share consensus estimate up nearly 50% since July.
In addition, it was recently revealed that Amazon will invest up to $4 billion in Anthropic, an AI safety and research company based in San Francisco and a rival of OpenAI. We're all aware that AI is Wall Street's shiny new toy in 2023, constantly dominating headlines.
The deal reflects a partnership to develop reliable and high-performing foundation models, with AWS now becoming Anthropic's primary cloud provider for critical workloads. Regarding AWS expectations for the upcoming print, the Zacks Consensus Estimate for AWS Net Sales stands at $23.2 billion, 13% higher than the year-ago figure.
The company has recently exceeded consensus expectations for AWS Net Sales in back-to-back releases.
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.
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.
Amazon would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
The Estee Lauder Companies is one of the world's leading manufacturers and marketers of skincare, makeup, fragrance, and hair care products. The company's products are sold through department stores, mass retailers, company-owned retail stores, hair salons, and travel-related establishments.
Analysts have taken a bearish stance on the company's earnings outlook, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
In addition, the stock currently resides in the Zacks – Cosmetics industry, which is currently ranked in the bottom 24% (191 out of 251) of all Zacks Industries. Let's take a closer look at how the company currently stacks up.
Current Standing
Estee Lauder shares have faced adverse price action throughout 2023, down more than 43% year-to-date and widely underperforming relative to the S&P 500. Shares have regularly faced selling pressure following quarterly releases.
Regarding the latest release, the company exceeded consensus expectations handily but delivered weak results compared to the year-ago period; revenue saw 1.4% growth year-over-year, whereas adjusted EPS decreased 80% compared to the same period last year.
The company's shareholder-friendly nature is worth highlighting, with EL sporting an 11% five-year annualized dividend growth rate. Shares presently yield a solid 1.9% annually paired with a payout ratio sitting at 77% of the company's earnings.
The company enters its FY24 with a continued focus on accelerating balanced and profitable growth across regions, brands, product categories, and channels.
Bottom Line
Negative earnings estimate revisions from analysts paint a challenging picture for the company's shares in the near term.
The Estee Lauder Companies is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook.
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:
What to Expect from Domino's (DPZ - Free Report) Earnings
Domino's Pizza, Inc.is scheduled to report third-quarter 2023 results on Oct 12, before the opening bell. In the last reported quarter, the company's earnings surpassed the Zacks Consensus Estimate by 1.3%.
Q3 Estimates
The Zacks Consensus Estimate for earnings is pegged at $3.29 per share, suggesting 17.9% growth from the prior-year quarter. Over the past 60 days, earnings estimates have remained stable. The consensus mark for revenues is pegged at $1.05 billion, indicating a decline of 1.6% from the year-ago reported figure.
Factors to Note
Domino's fiscal third-quarter results are likely to gain from robust same store sales growth, unit expansion, new menu addition and strong digitalization. DPZ continues to benefit from strong carryout and delivery businesses. It has been focusing on Car Side Delivery 2-Minute Guarantee with awareness campaigns. However, the company's top line is expected to have been hurt by a decline in sales of U.S. stores and supply-chain revenues.
Our model predicts total U.S. store revenues to dip 0.1% to $355.3 million year over year. Moreover, our model estimates supply-chain revenues to fall 3.3% year over year to $624.7 million.
An ease in inflationary pressure is likely to have aided the company's margin. Our model projects U.S. company-owned stores and supply-chain cost of sales to decrease 23.6% and 4.5% year over year, respectively. We expect gross margin in the quarter under review to be 39.4% compared with 35.7% reported in the prior-year quarter.
What the Zacks Model Unveils
Our proven model doesn't conclusively predict an earnings beat for Domino's this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Domino's has an Earnings ESP of -1.92%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Zacks Rank: Domino's carries a Zacks Rank #3.
Stocks to Consider
Here are some stocks worth considering from the Zacks Retail-Wholesalespace as our model shows that these too have the right combination of elements to beat on earnings this season.
McDonald's Corp. currently has an Earnings ESP of +1.11% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.
MCD's earnings beat the consensus mark in all of the trailing four quarters, the average beat being 9.5%. Earnings per share for the to-be-reported quarter are expected to increase 11.6% year over year.
Chipotle Mexican Grill, Inc. currently has an Earnings ESP of +0.37% and a Zacks Rank #3.
CMG's earnings beat the consensus estimate in three of the last four quarters and missed once. It has a trailing four-quarter earnings surprise of 4.8%, on average. Earnings per share for the to-be-reported quarter are expected to rise 10% year over year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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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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/performancefor information about the performance numbers displayed in this press release.