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Daktronics, and Canadian Solar have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL –July 15, 2024 – Zacks Equity Research shares Daktronics (DAKT - Free Report) , as the Bull of the Day and Canadian Solar (CSIQ - Free Report) , as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SM Energy Co. (SM - Free Report) , Sunoco LP (SUN - Free Report) and Tullow Oil (TUWOY - Free Report) .
Daktronics is a Zacks Rank #1 (Strong Buy) that has an A for Value and a B for Growth. This company is in the market of electronic scoreboards, computer programmed displays and large screen video displays. Maybe you have seen some “tricked-out” man caves lately that have scoreboards and arena style displays in them… well it is quickly becoming the new thing to do. Let’s explore more about this company in this Bull of The Day article.
Description
Daktronics, Inc. engages in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications. It operates through the following segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company was founded by Aelred J. Kurtenbach and Duane E. Sander in 1968 and is headquartered in Brookings, SD.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
I see only one quarter with a Zacks Consensus Estimate and it was the most recent quarter. The company posted EPS of 27 cents when the estimate called for 14 cents. That 13 cent difference works out to be a 92% positive earnings surprise.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Estimates are moving higher for Daktronics.
This quarter has moved from 21 cents to 30 cents.
Next quarter has increased from 22 cents to 30 cents.
The full fiscal year has moved up from $0.84 to $1.13.
Next year has moved from $0.92 to $1.17.
Growth
I see 2.6% growth expected this year and then that number accelerates to 4.45% next year.
The most recent quarter saw topline growth of 2.87%.
Valuation
The forward earnings multiple of 12x is right where you would expect a company like this. There is a big potential for growth here but the margins have been slipping of late. I see operating margins going from 8.5% to 8.3% and most recently down to 7.2%, that needs to be turned around quickly if the earnings multiple is to be expanded.
Price to book is at 2.6x while price to sales comes in at 0.77x.
Canadian Solar is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower despite the fact that the company beat the number back in May. The company is a provider of solar photovoltaic modules that provide solar power and battery storage solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Ontario, Canada-based Canadian Solar Inc. is a leading manufacturer of solar photovoltaic modules and a provider of solar energy and battery energy storage solutions. The company also develops utility-scale solar power and battery-energy storage projects with a geographically diversified pipeline in various stages of development. The company was incorporated in Canada in 2001.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Canadian Solar, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a beat with the company posting $0.19 when the consensus was calling for a loss of $0.34. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CSIQ I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.22 to $2.07 over the last 60 days.
The next year has moved from $3.24 to $2.77 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Trends & Projections from IEA's Monthly Oil Market Report
The International Energy Agency (‘IEA’) has released its latest ‘Oil Market Report,’ providing crucial insights into global oil consumption, supply dynamics and market trends. This report comes closely on the heels of OPEC's own projections, highlighting interesting contrasts and comparisons.
Demand, Supply Projections and Trends
The IEA has trimmed its global oil demand growth estimate for 2025 by 50,000 barrels per day (b/d) to 980,000 b/d, citing the normalization of post-pandemic demand trends. This adjustment reflects a return to pre-pandemic growth rates, with China's previously dominant consumption showing significant signs of contraction. For 2024, the IEA's demand growth estimate remains virtually unchanged at 970,000 b/d, although the second quarter's growth was the slowest since Q4 2022 at just 710,000 b/d.
China's oil consumption declined year on year in Q2 2024, contrasting sharply with the substantial gains seen in 2023 and the first quarter of 2024. This decline underscores the waning of China's post-pandemic rebound, with weaker demand for industrial fuels and petrochemical feedstocks playing a critical role.
On the supply side, the IEA has raised its estimate for non-OPEC+ oil production growth in 2024 from 1.4 million b/d to 1.5 million b/d, buoyed by an upward revision in U.S. production growth to 740,000 b/d.
Comparing IEA and OPEC Projections
OPEC's latest monthly report, published just a day before the IEA's, presents a more optimistic outlook. OPEC projects a global oil demand growth of 2.25 million b/d in 2024 and 1.85 million b/d in 2025. What is noticeasble is that for both years, OPEC's demand growth figures are significantly higher than those of the IEA.
OPEC's optimism is supported by stronger-than-expected economic performance in key economies such as Brazil, Russia, India and China, coupled with a recovery in the eurozone. Additionally, OPEC maintains a stable outlook for non-OPEC+ supply growth, primarily driven by the United States, Canada and Brazil.
Market Dynamics & the Road Ahead
Oil prices have risen since June, with WTI crude up around 8% to over $83 per barrel now. This rally is partly due to seasonal upticks in northern hemisphere demand and constrained supply. The IEA highlights that the recent price increases are also supported by declining crude stocks and geopolitical risks.
As we move forward, the oil market is poised between supply constraints and evolving demand dynamics. The IEA's forecast for lower growth in China's oil consumption and the continued rise in non-OPEC+ production will likely keep the market in a state of flux. However, with geopolitical risks and potential changes in monetary policy from the Federal Reserve, there are positive indicators for sustained demand and price stability.
3 Stocks to Buy
Considering this relatively bullish picture, we recommend Oil/Energy investors to accumulate stocks like SM Energy Co., Sunoco LP, and Tullow Oil. Sunoco currently sports a Zacks Rank #1 (Strong Buy), while SM Energy and Tullow carry a Zacks Rank #2 (Buy) each.
You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company: SM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. The independent oil and gas exploration and production company has a trailing four-quarter earnings surprise of 13.8% on average.
SM is valued at around $5.1 billion. SM Energy has seen its shares increase 24.4% in a year.
Sunoco LP: The Zacks Consensus Estimate for 2024 earnings of Sunoco indicates 99.7% growth.
The leading energy infrastructure and fuel distributors is valued at around $5.7 billion. Sunoco has seen its stock rise 29.2% in a year.
Tullow Oil: TUWOY is valued at some $561.4 million. Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has increased 20%.
Tullow Oil enjoys a Value and Growth Score of A and B, respectively, each helping it round out with a VGM Score of A. The Africa-focused hydrocarbon producer and explorer shares have gained 5.6% in a year.
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.
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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Daktronics, and Canadian Solar have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL –July 15, 2024 – Zacks Equity Research shares Daktronics (DAKT - Free Report) , as the Bull of the Day and Canadian Solar (CSIQ - Free Report) , as the Bear of the Day. In addition, Zacks Equity Research provides analysis on SM Energy Co. (SM - Free Report) , Sunoco LP (SUN - Free Report) and Tullow Oil (TUWOY - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Daktronics is a Zacks Rank #1 (Strong Buy) that has an A for Value and a B for Growth. This company is in the market of electronic scoreboards, computer programmed displays and large screen video displays. Maybe you have seen some “tricked-out” man caves lately that have scoreboards and arena style displays in them… well it is quickly becoming the new thing to do. Let’s explore more about this company in this Bull of The Day article.
Description
Daktronics, Inc. engages in designing and manufacturing electronic scoreboards, programmable display systems and large screen video displays for sporting, commercial and transportation applications. It operates through the following segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The company was founded by Aelred J. Kurtenbach and Duane E. Sander in 1968 and is headquartered in Brookings, SD.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
I see only one quarter with a Zacks Consensus Estimate and it was the most recent quarter. The company posted EPS of 27 cents when the estimate called for 14 cents. That 13 cent difference works out to be a 92% positive earnings surprise.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Estimates are moving higher for Daktronics.
This quarter has moved from 21 cents to 30 cents.
Next quarter has increased from 22 cents to 30 cents.
The full fiscal year has moved up from $0.84 to $1.13.
Next year has moved from $0.92 to $1.17.
Growth
I see 2.6% growth expected this year and then that number accelerates to 4.45% next year.
The most recent quarter saw topline growth of 2.87%.
Valuation
The forward earnings multiple of 12x is right where you would expect a company like this. There is a big potential for growth here but the margins have been slipping of late. I see operating margins going from 8.5% to 8.3% and most recently down to 7.2%, that needs to be turned around quickly if the earnings multiple is to be expanded.
Price to book is at 2.6x while price to sales comes in at 0.77x.
Bear of the Day:
Canadian Solar is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower despite the fact that the company beat the number back in May. The company is a provider of solar photovoltaic modules that provide solar power and battery storage solutions. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Ontario, Canada-based Canadian Solar Inc. is a leading manufacturer of solar photovoltaic modules and a provider of solar energy and battery energy storage solutions. The company also develops utility-scale solar power and battery-energy storage projects with a geographically diversified pipeline in various stages of development. The company was incorporated in Canada in 2001.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of Canadian Solar, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a beat with the company posting $0.19 when the consensus was calling for a loss of $0.34. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CSIQ I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.22 to $2.07 over the last 60 days.
The next year has moved from $3.24 to $2.77 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a lot of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Trends & Projections from IEA's Monthly Oil Market Report
The International Energy Agency (‘IEA’) has released its latest ‘Oil Market Report,’ providing crucial insights into global oil consumption, supply dynamics and market trends. This report comes closely on the heels of OPEC's own projections, highlighting interesting contrasts and comparisons.
Demand, Supply Projections and Trends
The IEA has trimmed its global oil demand growth estimate for 2025 by 50,000 barrels per day (b/d) to 980,000 b/d, citing the normalization of post-pandemic demand trends. This adjustment reflects a return to pre-pandemic growth rates, with China's previously dominant consumption showing significant signs of contraction. For 2024, the IEA's demand growth estimate remains virtually unchanged at 970,000 b/d, although the second quarter's growth was the slowest since Q4 2022 at just 710,000 b/d.
China's oil consumption declined year on year in Q2 2024, contrasting sharply with the substantial gains seen in 2023 and the first quarter of 2024. This decline underscores the waning of China's post-pandemic rebound, with weaker demand for industrial fuels and petrochemical feedstocks playing a critical role.
On the supply side, the IEA has raised its estimate for non-OPEC+ oil production growth in 2024 from 1.4 million b/d to 1.5 million b/d, buoyed by an upward revision in U.S. production growth to 740,000 b/d.
Comparing IEA and OPEC Projections
OPEC's latest monthly report, published just a day before the IEA's, presents a more optimistic outlook. OPEC projects a global oil demand growth of 2.25 million b/d in 2024 and 1.85 million b/d in 2025. What is noticeasble is that for both years, OPEC's demand growth figures are significantly higher than those of the IEA.
OPEC's optimism is supported by stronger-than-expected economic performance in key economies such as Brazil, Russia, India and China, coupled with a recovery in the eurozone. Additionally, OPEC maintains a stable outlook for non-OPEC+ supply growth, primarily driven by the United States, Canada and Brazil.
Market Dynamics & the Road Ahead
Oil prices have risen since June, with WTI crude up around 8% to over $83 per barrel now. This rally is partly due to seasonal upticks in northern hemisphere demand and constrained supply. The IEA highlights that the recent price increases are also supported by declining crude stocks and geopolitical risks.
As we move forward, the oil market is poised between supply constraints and evolving demand dynamics. The IEA's forecast for lower growth in China's oil consumption and the continued rise in non-OPEC+ production will likely keep the market in a state of flux. However, with geopolitical risks and potential changes in monetary policy from the Federal Reserve, there are positive indicators for sustained demand and price stability.
3 Stocks to Buy
Considering this relatively bullish picture, we recommend Oil/Energy investors to accumulate stocks like SM Energy Co., Sunoco LP, and Tullow Oil. Sunoco currently sports a Zacks Rank #1 (Strong Buy), while SM Energy and Tullow carry a Zacks Rank #2 (Buy) each.
You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy Company: SM beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters. The independent oil and gas exploration and production company has a trailing four-quarter earnings surprise of 13.8% on average.
SM is valued at around $5.1 billion. SM Energy has seen its shares increase 24.4% in a year.
Sunoco LP: The Zacks Consensus Estimate for 2024 earnings of Sunoco indicates 99.7% growth.
The leading energy infrastructure and fuel distributors is valued at around $5.7 billion. Sunoco has seen its stock rise 29.2% in a year.
Tullow Oil: TUWOY is valued at some $561.4 million. Over the past 60 days, the Zacks Consensus Estimate for 2024 earnings has increased 20%.
Tullow Oil enjoys a Value and Growth Score of A and B, respectively, each helping it round out with a VGM Score of A. The Africa-focused hydrocarbon producer and explorer shares have gained 5.6% in a year.
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/performance for information about the performance numbers displayed in this press release.