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Zacks Investment Ideas feature highlights: Tesla, Intel and Starbucks
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For Immediate Release
Chicago, IL – June 3, 2024 – Today, Zacks Investment Ideas feature highlights including Tesla (TSLA - Free Report) , Intel (INTC - Free Report) and Starbucks (SBUX - Free Report) .
Are These Beaten-Down Stocks Worth a Look?
It's shaping up to be another great year for investors, with the market building on last year's gains amid continued positive sentiment. The artificial intelligence (AI) theme continues to be the dominant story, with many large-cap tech companies enjoying tailwinds.
Still, the year hasn't been as positive for all, including Tesla, Intel and Starbucks, whose shares have lagged considerably.
But is the selling overdone? Let's take a closer look at how each company stacks up.
Tesla Shares Down Almost 30%
Down nearly 30% in 2024, Tesla shares have faced a bumpy road, with lower margins and hybrid momentum negatively affecting performance. Analysts have noted the headwinds, lowering their earnings expectations across the board.
Still, shares saw a pop post-earnings following its latest release despite Tesla posting numbers that came in below consensus expectations. Concerning key metrics, TSLA produced over 433,000 vehicles and delivered approximately 387,000 throughout the period.
The company's unfavorable earnings outlook will likely continue weighing on share performance, but it continues to focus on cost-cutting exercises to increase operational efficiency. In addition, it's worth noting that TSLA is part of the AI theme, spending $1 billion on AI infrastructure CapEx throughout its latest period to support autonomous driving efforts.
Intel Earnings Forecast Flat YOY
Like TSLA, Intel has also suffered negative earnings estimate revisions, with the stock presently carrying a Zacks Rank #4 (Sell). Soft margin and revenue expectations announced for its current period spooked investors, causing shares to see post-earnings pressure following its latest release.
The company has faced operational issues for some time, with the stock not participating in the AI trade. It's reasonable to expect shares to continue trading unfavorably until positive earnings estimate revisions begin rolling in, which would likely be sparked by a robust set of quarterly results.
The valuation picture for Intel also seems a bit rich, with shares trading at a 28.7X forward earnings multiple (F1). The company's earnings are forecasted to be flat year-over-year on +2.7% revenue growth, with the stock also carrying a Style Score of 'F; for Value.
Starbucks Facing Pressure in China
Slowing business in China has remained a thorn in the company's side, with China comparable store sales falling 11% on an 8% decline in average ticket in its latest period. North American and U.S. comparable store sales also showed weakness, 3% lower, but did see a 4% increase in average ticket.
Concerning headline figures in the print, SBUX fell short of the Zacks Consensus EPS estimate by 14% and posted sales 6.3% below expectations. Both items were down from the year-ago period, with sales of $8.5 billion down 2%.
The company's current earnings outlook reflects the headwinds, with the stock presently carrying a Zacks Rank #4 (Sell).
Nonetheless, the company remains confident, with the CFO stating, "While it was a difficult quarter, we learned from our own underperformance and sharpened our focus with a comprehensive roadmap of well thought out actions making the path forward clear."
Bottom Line
While many stocks have enjoyed positivity in 2024, not all have.
All three have underperformed notably year-to-date, with each also carrying a negative earnings picture. Shares of each will likely continue to face near-term pressure until positive earnings estimate revisions begin rolling in, which would reflect a notable change in sentiment.
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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.
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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Zacks Investment Ideas feature highlights: Tesla, Intel and Starbucks
For Immediate Release
Chicago, IL – June 3, 2024 – Today, Zacks Investment Ideas feature highlights including Tesla (TSLA - Free Report) , Intel (INTC - Free Report) and Starbucks (SBUX - Free Report) .
Are These Beaten-Down Stocks Worth a Look?
It's shaping up to be another great year for investors, with the market building on last year's gains amid continued positive sentiment. The artificial intelligence (AI) theme continues to be the dominant story, with many large-cap tech companies enjoying tailwinds.
Still, the year hasn't been as positive for all, including Tesla, Intel and Starbucks, whose shares have lagged considerably.
But is the selling overdone? Let's take a closer look at how each company stacks up.
Tesla Shares Down Almost 30%
Down nearly 30% in 2024, Tesla shares have faced a bumpy road, with lower margins and hybrid momentum negatively affecting performance. Analysts have noted the headwinds, lowering their earnings expectations across the board.
Still, shares saw a pop post-earnings following its latest release despite Tesla posting numbers that came in below consensus expectations. Concerning key metrics, TSLA produced over 433,000 vehicles and delivered approximately 387,000 throughout the period.
The company's unfavorable earnings outlook will likely continue weighing on share performance, but it continues to focus on cost-cutting exercises to increase operational efficiency. In addition, it's worth noting that TSLA is part of the AI theme, spending $1 billion on AI infrastructure CapEx throughout its latest period to support autonomous driving efforts.
Intel Earnings Forecast Flat YOY
Like TSLA, Intel has also suffered negative earnings estimate revisions, with the stock presently carrying a Zacks Rank #4 (Sell). Soft margin and revenue expectations announced for its current period spooked investors, causing shares to see post-earnings pressure following its latest release.
The company has faced operational issues for some time, with the stock not participating in the AI trade. It's reasonable to expect shares to continue trading unfavorably until positive earnings estimate revisions begin rolling in, which would likely be sparked by a robust set of quarterly results.
The valuation picture for Intel also seems a bit rich, with shares trading at a 28.7X forward earnings multiple (F1). The company's earnings are forecasted to be flat year-over-year on +2.7% revenue growth, with the stock also carrying a Style Score of 'F; for Value.
Starbucks Facing Pressure in China
Slowing business in China has remained a thorn in the company's side, with China comparable store sales falling 11% on an 8% decline in average ticket in its latest period. North American and U.S. comparable store sales also showed weakness, 3% lower, but did see a 4% increase in average ticket.
Concerning headline figures in the print, SBUX fell short of the Zacks Consensus EPS estimate by 14% and posted sales 6.3% below expectations. Both items were down from the year-ago period, with sales of $8.5 billion down 2%.
The company's current earnings outlook reflects the headwinds, with the stock presently carrying a Zacks Rank #4 (Sell).
Nonetheless, the company remains confident, with the CFO stating, "While it was a difficult quarter, we learned from our own underperformance and sharpened our focus with a comprehensive roadmap of well thought out actions making the path forward clear."
Bottom Line
While many stocks have enjoyed positivity in 2024, not all have.
All three have underperformed notably year-to-date, with each also carrying a negative earnings picture. Shares of each will likely continue to face near-term pressure until positive earnings estimate revisions begin rolling in, which would reflect a notable change in sentiment.
Why Haven't You Looked at Zacks' Top Stocks?
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.
See Stocks Free >>
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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.