For Immediate Release

Chicago, IL –July 8, 2024 – Zacks Equity Research shares J.Jill, Inc. (JILL Quick QuoteJILL - Free Report) , as the Bull of the Day and AMN Healthcare Services, Inc. (AMN Quick QuoteAMN - Free Report) , as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Cheniere Energy (LNG Quick QuoteLNG - Free Report) , Shell (SHEL Quick QuoteSHEL - Free Report) and Chevron CVX.

Here is a synopsis of all five stocks:

Bull of the Day:

J.Jill, Inc. is back on trend with women's apparel and has raised full year 2024 guidance. This Zacks Rank #1 (Strong Buy) also recently initiated a quarterly dividend.

J.Jill is a national women's retailer that provides apparel, footwear and accessories. It operates 244 stores in the United States and an e-commerce platform. It's a small cap company with a market cap of just $399 million.

Another Beat in Fiscal Q1 2024

On June 7, 2024, J. Jill reported its fiscal first quarter 2024 results and beat on the Zacks Consensus by $0.08, or 7%. Earnings were $1.22 versus the Zacks Consensus of $1.14.

J. Jill has put together an impressive earnings surprise track record the last few years. This was the 11th quarterly earnings beat in a row.

Sales rose 7.5% to $161.5 million from $150.2 million in the year ago period.

Comparable sales, which is a key metric in retail, rose 3.1% year-over-year.

The company also has its direct-to-consumer business humming as it represented 47% of total net sales, which was up 11.6% compared to the first quarter of last year.

Gross margin also expanded 80 basis points to 72.9% from 72.1% in the first quarter of fiscal 2023.

Analysts Bullish on F2024 and F2025

J.Jill is bullish. It now expects full year fiscal 2024 sales to grow between 1% and 3%.

The analysts are bullish too. They have been raising their earnings estimates over the past 60 days. That has pushed the Zacks Consensus for fiscal 2024 up to $3.43 from $3.25 just sixty days ago. That is earnings growth of 9.6% over fiscal 2023 as J.Jill made just $3.13 last year.

They are also bullish on fiscal 2025 with analysts expecting another 14.6% earnings growth, or $3.93.

Reducing Debt and Interest Expense

J. Jill has also made a concerted effort to pay down its outstanding debt. On May 10, 2024, it made a voluntary debt prepayment of $58.2 million.

And on June 24, 2024, J.Jill announced it had executed another voluntary debt principal payment of $27.2 million, which reduced the amount outstanding under the Company's term loan to about $81 million.

In addition to the principal, accrued interest and a 3% voluntary premium were paid, which resulted in a total payment of $28.8 million.

For the June 24 payment, J.Jill used the proceeds from a $31 million primary equity offering completed on June 14, 2024.

Initiating a Dividend

Also on May 10, 2024, the company announced it was initiating a $0.07 per share quarterly dividend. It also said it intends to pay it quarterly, per Board approval, of course.

The dividend is currently yielding 0.8%.

Shares Hit 5-Year Highs in 2024

J.Jill is a small cap company so it's stock is subject to more volatility. But the shares have been rising the last 5 years and hit a new high earlier in 2024.

Year-to-date, shares are up 34%, which is beating the performance of the S&P 500, which is up 17.4% during that same time.

Yet, J.Jill shares are cheap. It trades with a forward P/E of just 9.9 and has a P/S ratio of only 0.6. A P/S ratio under 1.0 usually indicates a company is undervalued. An investor is getting the shares on sale.

For investors looking for a small cap retailer that is on the upswing, J.Jill should be on your short list.

Bear of the Day:

AMN Healthcare Services, Inc. is still struggling with the normalization of nurse staffing post-pandemic. This Zacks Rank #5 (Strong Sell) is expected to see earnings decline another 61% this year.

AMN Healthcare provides talent solutions for healthcare organizations across the nation. It's total talent solutions include managed services programs, clinical and interim healthcare leaders, temporary staffing, permanent placement, executive search, vendor management systems, recruitment process outsourcing, predictive modeling, language services, revenue cycle solutions and other services.

Its clients include acute-care hospitals, community health centers and clinics, physician practice groups, retail and urgent care centers, home health facilities, schools and other healthcare settings.

Another Beat in the First Quarter of 2024

On May 9, 2024, AMN Healthcare reported its first quarter results and beat on the Zacks Consensus Estimate by $0.04. Earnings were $0.97 versus the consensus of $0.93 for a 4.3% beat.

It shouldn't be a surprise it beat again, as AMN Healthcare is an earnings all-star. It hasn't missed in 5 years.

That kind of track record, which occurred during the Covid pandemic, is testament to the communication between AMN Healthcare's management and the analysts covering the company on Wall Street.

Because business has been in quite the flux, despite the earnings beats. Yet management has been able to temper expectations.

While first quarter revenue was in line with expectations, it still fell 27% year-over-year to $820.9 million. Earnings were down 61% from last year's quarter.

It's largest segment, nursing staffing, still suffers from weaker demand and a continued competitive environment. In the quarter, revenue in the Nurse and Allied Solutions segment fell by 37% year-over-year to $519 million. That was also 3% lower than the fourth quarter of 2023 which indicates that the segment hasn't bottomed yet.

Travel nurse staffing revenue fell by 44% compared to last year and 5% sequentially. Allied division revenue declined 13% year-over-year but was up 4% sequentially.

One area of optimism was Language Services, up 16% year-over-year to $71 million and also up 4% sequentially. Is the worst over in Language Services?

Analysts Continue to Cut 2024 Earnings Estimates

AMN Healthcare issued a bleak outlook for the second quarter of 2024. It's no surprise that the analysts are doing the same but on the full year.

5 estimates have been cut in the last 60 days, pushing the 2024 earnings estimate down to $3.15 from $3.86. That's an earnings decline of 61.6% as AMN Healthcare made $8.21 last year.

Will Shares Roundtrip Back to the 2020 Lows?

Shares of AMN Healthcare rallied big during the height of the pandemic in 2021 as travel nurses were in high demand at record high salaries. AMN Healthcare's earnings soared.

But now we're on the flip side of that story, with the nursing demand still normalizing. The shares may yet retest the 2020 Covid lows.

Is it cheap? AMN Healthcare trades with a forward P/E of 15.4 as the earnings keep declining. While that is cheap, it's not dirt cheap.

Investors should probably wait on the sidelines until it becomes clear that the nurse staffing revenue has stabilized. Watch the earnings estimates. When they start to be revised higher, that's when the outlook will be brighter.

Additional content:

Federal Court Clears Path for LNG Exports

Liquefied natural gas ("LNG") is becoming an increasingly critical component of the global energy landscape. The United States has emerged as a dominant player, largely due to its vast natural gas resources and advanced infrastructure. LNG's role in enhancing energy security and supporting the transition to cleaner fuels cannot be overstated. With the recent federal court ruling lifting the Biden administration's pause on new permit approvals for LNG exports, the path is now clear for investors to capitalize on this booming sector.

In January, the Biden administration, responding to climate concerns, paused approvals for new LNG export facilities. This decision was aimed at assessing the impact of LNG projects on climate change, the economy and national security. While the administration's intent was to ensure sustainable energy practices, the move faced significant pushback from energy-producing states and industry stakeholders.

The pause, framed as a temporary measure, was rooted in the desire to align the nation's energy policies with its climate commitments. LNG, while cleaner than coal, still contributes to greenhouse gas emissions, particularly methane, which is a potent contributor to global warming. The administration sought to balance the need for energy security and economic growth with its climate agenda.

However, this decision was met with legal challenges. Sixteen states, led by key natural gas producers like Texas, Louisiana, and West Virginia, filed a lawsuit arguing that the pause was unlawful and detrimental to their economies. U.S. District Judge James D. Cain Jr. ruled in favor of these states, stating that the administration's halt was "completely without reason or logic."

Judge Cain's ruling is a significant win for the energy industry. It highlights the critical role LNG exports play in the U.S. economy and the global energy market. LNG exports not only drive job creation and economic growth domestically but also provide essential energy supplies to global allies, particularly in Europe and Asia.

For investors, this ruling opens up substantial opportunities in leading U.S. LNG exporters like Cheniere Energy, Shell and Chevron.

Cheniere Energy: Being the first company to receive regulatory approval to export LNG from its 2.6 billion cubic feet per day Sabine Pass terminal, Cheniere Energy certainly enjoys a distinct competitive advantage. The Zacks Rank #3 (Hold) company is primed for significant revenue and earnings growth on the back of solid operations and long-term contracts. Cheniere Energy’s gas supply deals for its Sabine Pass and Corpus Christi projects offer excellent cash flow visibility in the coming years.

You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shell: Shell’s long-term strategy revolves around LNG. This London-based firm bought BG Group for $50 billion in 2016 to become the world’s largest producer and shipper of LNG. With LNG export demand likely to rise significantly in the near-to-medium term, SHEL’s position as a major supplier of LNG should help the company meet the fuel’s growing demand and help cash flow to improve.

Chevron: Chevron is another world-class operator of LNG. The giant Gorgon and Wheatstone developments in Australia are part of Chevron’s long-term strategy and are also its flagship LNG developments. These mega projects allow the supermajor to tap into the strong Asian LNG demand. CVX is the operator of both projects — with a stake of 64.14% in Wheatstone and 47.3% in the Gorgon development.

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