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Super Micro Computer and Walgreens Boots Alliance have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 2, 2024 – Zacks Equity Research shares Super Micro Computer (SMCI - Free Report) as the Bull of the Day and Walgreens Boots Alliance (WBA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Co. (BKR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Co. (MTDR - Free Report) .
Super Micro Computer is the premier provider of advanced Server Building Block Solutions for 5G/Edge, Data Center, Cloud, Enterprise, Big Data, HPC, and Embedded markets worldwide. The company's earnings outlook remains bullish across the board, pushing it into the highly-coveted Zacks Rank #1 (Strong Buy).
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Computer – Storage Devices industry, currently ranked in the top 18% of all Zacks industries. Let's take a closer look at how the company currently stacks up.
Super Micro Computer Posts Robust Quarterly Results
Super Micro shares have been in a league of their own in 2024, gaining nearly 190% and crushing the S&P 500's also impressive 16% gain. Share performance has been aided by robust quarterly results, with the company posting 360% year-over-year EPS growth on 200% higher sales in its latest print.
SMCI's top line has shown a notable acceleration over the last few periods, as we can see illustrated below. Sales growth is forecasted to remain robust, with the $14.9 billion Zacks Consensus Sales estimate for its current fiscal year suggesting a 110% climb year-over-year.
Charles Liang, CEO of Supermicro, was positive on the latest set of results, stating, "Strong demand for AI rack scale PnP solutions, along with our team's ability to develop innovative DLC designs, enabled us to expand our market leadership in AI infrastructure. As new solutions ramp, including fully production ready DLC, we expect to continue gaining market share. As such, we are raising our fiscal year 2024 revenue outlook from $14.3 to $14.7 billion to a new range of $14.7 to $15.1 billion."
Revenue expectations moved accordingly following the release, up a staggering 94% overall over the last year.
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.
Super Micro Computer would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Walgreens Boots Alliance is a retail drugstore chain that sells prescription and non-prescription drugs. The company also sells general merchandise products, including household items, convenience and fresh foods, personal care, beauty care, photofinishing, and candy.
Analysts have taken a bearish stance on the company's outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
In addition, the company is in the Zacks Retail – Pharmacies and Drug Stores industry, which is currently ranked in the bottom 1% of all Zacks industries.
Let's take a closer look at the company.
Walgreens Boots Alliance
WBA shares have faced consistent pressure year-to-date, down more than 50% and widely underperforming. A recent set of weak quarterly results caused a post-earnings share plunge, with the company falling short of EPS expectations but delivering a modest sales beat.
WBA lowered its outlook following the release, explaining the knee-jerk reaction that followed.
CEO Tim Wentworth acknowledged the weaker-than-expected results, stating, "We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins. Our results and outlook reflect these headwinds, despite solid performance in both our International and U.S. Healthcare segments."
Shares yield 8.3% annually now following the steep decline, though it's critical to note that investors should remain on the sidelines until the company's earnings picture shifts positively and it provides further guidance on its strategic initiatives.
Bottom Line
Margin pressures and lowered guidance paint a challenging picture for the company's shares in the near term.
Walgreens Boots Alliance (WBA - Free Report) 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:
Total U.S. Drilling Rig Tally Falls: Here's What It Means
In its weekly release, Baker Hughes Co. stated that the U.S. rig count was lower than the prior week's figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes' data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company's oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 581 in the week ended Jun 28, lower than the week-ago count of 588. The current national rig count also declined from the year-ago level of 674, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Jun 28 totaled 560, lower than the prior week's count of 567. In offshore resources, 21 rigs were operating, which was flat with the week-ago count.
U.S. Oil Rig Count Declines: The oil rig count was 479 in the week ended Jun 28, lower than the week-ago figure of 485. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — was also down from the year-ago figure of 545.
U.S. Natural Gas Rig Count Falls: The natural gas rig count of 97 was lower than the week-ago figure of 98. The count of rigs exploring the commodity was also below the year-ago week's tally of 124. Per the latest report, the number of natural gas-directed rigs is almost 94% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 18 units, lower than the week-ago count of 19. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 563 was down from the prior-week level of 569.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil and gas rig count of 305, which was lower than the week-ago figure of 308. The count is also below the prior-year level of 341.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, highly favorable for exploration and production operations. Although the commodity pricing scenario is handsome, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output.
Amid the backdrop, investors seeking medium to long-term gains may keep an eye on energy stocks like Diamondback Energy, Inc. and Matador Resources Co..
Diamondback Energy, a leading pure-play Permian operator, reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company expects to maintain growth in production volumes, benefiting from favorable commodity pricing conditions. FANG, carrying a Zacks Rank #3 (Hold), also has an investment-grade balance sheet. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Matador Resources recently entered into a $1.91 billion agreement to expand its footprint in the prolific Delaware Basin. With the deal expected to close in the late third quarter of 2024, the #3 Ranked company is projected to have more than 190,000 net acres in the Delaware Basin on a pro forma basis. Consequently, the company estimates that its production will exceed 180,000 barrels of oil equivalent per day, positioning it for significant growth and enhanced operational scale.
Why Haven't You Looked at Zacks' Top Stocks?
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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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Super Micro Computer and Walgreens Boots Alliance have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 2, 2024 – Zacks Equity Research shares Super Micro Computer (SMCI - Free Report) as the Bull of the Day and Walgreens Boots Alliance (WBA - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Baker Hughes Co. (BKR - Free Report) , Diamondback Energy, Inc. (FANG - Free Report) and Matador Resources Co. (MTDR - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Super Micro Computer is the premier provider of advanced Server Building Block Solutions for 5G/Edge, Data Center, Cloud, Enterprise, Big Data, HPC, and Embedded markets worldwide. The company's earnings outlook remains bullish across the board, pushing it into the highly-coveted Zacks Rank #1 (Strong Buy).
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Computer – Storage Devices industry, currently ranked in the top 18% of all Zacks industries. Let's take a closer look at how the company currently stacks up.
Super Micro Computer Posts Robust Quarterly Results
Super Micro shares have been in a league of their own in 2024, gaining nearly 190% and crushing the S&P 500's also impressive 16% gain. Share performance has been aided by robust quarterly results, with the company posting 360% year-over-year EPS growth on 200% higher sales in its latest print.
SMCI's top line has shown a notable acceleration over the last few periods, as we can see illustrated below. Sales growth is forecasted to remain robust, with the $14.9 billion Zacks Consensus Sales estimate for its current fiscal year suggesting a 110% climb year-over-year.
Charles Liang, CEO of Supermicro, was positive on the latest set of results, stating, "Strong demand for AI rack scale PnP solutions, along with our team's ability to develop innovative DLC designs, enabled us to expand our market leadership in AI infrastructure. As new solutions ramp, including fully production ready DLC, we expect to continue gaining market share. As such, we are raising our fiscal year 2024 revenue outlook from $14.3 to $14.7 billion to a new range of $14.7 to $15.1 billion."
Revenue expectations moved accordingly following the release, up a staggering 94% overall over the last year.
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.
Super Micro Computer would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Walgreens Boots Alliance is a retail drugstore chain that sells prescription and non-prescription drugs. The company also sells general merchandise products, including household items, convenience and fresh foods, personal care, beauty care, photofinishing, and candy.
Analysts have taken a bearish stance on the company's outlook, landing the stock into a Zacks Rank #5 (Strong Sell).
In addition, the company is in the Zacks Retail – Pharmacies and Drug Stores industry, which is currently ranked in the bottom 1% of all Zacks industries.
Let's take a closer look at the company.
Walgreens Boots Alliance
WBA shares have faced consistent pressure year-to-date, down more than 50% and widely underperforming. A recent set of weak quarterly results caused a post-earnings share plunge, with the company falling short of EPS expectations but delivering a modest sales beat.
WBA lowered its outlook following the release, explaining the knee-jerk reaction that followed.
CEO Tim Wentworth acknowledged the weaker-than-expected results, stating, "We continue to face a difficult operating environment, including persistent pressures on the U.S. consumer and the impact of recent marketplace dynamics which have eroded pharmacy margins. Our results and outlook reflect these headwinds, despite solid performance in both our International and U.S. Healthcare segments."
Shares yield 8.3% annually now following the steep decline, though it's critical to note that investors should remain on the sidelines until the company's earnings picture shifts positively and it provides further guidance on its strategic initiatives.
Bottom Line
Margin pressures and lowered guidance paint a challenging picture for the company's shares in the near term.
Walgreens Boots Alliance (WBA - Free Report) 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:
Total U.S. Drilling Rig Tally Falls: Here's What It Means
In its weekly release, Baker Hughes Co. stated that the U.S. rig count was lower than the prior week's figure. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes' data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the week-ago figure indicates the demand trajectory for the company's oilfield services from exploration and production companies.
Rig Count Data in Detail
Total U.S. Rig Count Falls: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 581 in the week ended Jun 28, lower than the week-ago count of 588. The current national rig count also declined from the year-ago level of 674, reflecting the fact that there has been a slowdown in drilling activities. Some analysts see this downside as a sign of increased efficiency among shale producers, who may need fewer rigs. However, there are doubts among a few about whether certain producers have sufficient promising land for drilling.
Onshore rigs in the week that ended on Jun 28 totaled 560, lower than the prior week's count of 567. In offshore resources, 21 rigs were operating, which was flat with the week-ago count.
U.S. Oil Rig Count Declines: The oil rig count was 479 in the week ended Jun 28, lower than the week-ago figure of 485. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — was also down from the year-ago figure of 545.
U.S. Natural Gas Rig Count Falls: The natural gas rig count of 97 was lower than the week-ago figure of 98. The count of rigs exploring the commodity was also below the year-ago week's tally of 124. Per the latest report, the number of natural gas-directed rigs is almost 94% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 18 units, lower than the week-ago count of 19. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 563 was down from the prior-week level of 569.
Rig Count in the Most Prolific Basin
Permian — the most prolific basin in the United States — recorded a weekly oil and gas rig count of 305, which was lower than the week-ago figure of 308. The count is also below the prior-year level of 341.
Outlook
The West Texas Intermediate crude price is trading at more than the $80-per-barrel mark, highly favorable for exploration and production operations. Although the commodity pricing scenario is handsome, there has been a slowdown in drilling activities, which may continue as upstream players are prioritizing stockholder returns rather than boosting output.
Amid the backdrop, investors seeking medium to long-term gains may keep an eye on energy stocks like Diamondback Energy, Inc. and Matador Resources Co..
Diamondback Energy, a leading pure-play Permian operator, reported ongoing enhancements in the average productivity per well in the Midland Basin. The exploration and production company expects to maintain growth in production volumes, benefiting from favorable commodity pricing conditions. FANG, carrying a Zacks Rank #3 (Hold), also has an investment-grade balance sheet. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Matador Resources recently entered into a $1.91 billion agreement to expand its footprint in the prolific Delaware Basin. With the deal expected to close in the late third quarter of 2024, the #3 Ranked company is projected to have more than 190,000 net acres in the Delaware Basin on a pro forma basis. Consequently, the company estimates that its production will exceed 180,000 barrels of oil equivalent per day, positioning it for significant growth and enhanced operational scale.
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 >>
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.