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Chewy and Five Industries have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – July 17, 2024 – Zacks Equity Research shares Chewy (CHWY - Free Report) as the Bull of the Day and Five Below (FIVE - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Coinbase Global, Inc. (COIN - Free Report) , Block, Inc. (SQ - Free Report) and NVIDIA Corp. (NVDA - Free Report)
Chewy operates as an online pet retailer, offering pet products that include dry and wet food, toys, mats, biscuits, vitamins, and supplements. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with analysts raising their expectations across the board.
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Internet – Commerce industry, currently ranked in the top 24% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.
Chewy Shares Soar Post-Earnings
Chewy’s latest set of quarterly results pleased investors, with shares soaring post-earnings thanks to an 88% year-over-year pop in EPS. Up 68% just over the last three months, shares have been red-hot, displaying notable outperformance.
Operational efficiencies have aided CHWY’s profitability nicely, with earnings forecasted to jump nearly 40% in its current fiscal year (FY25). It’s worth noting that the company also recently announced a $500 million share repurchase program, which could help put in a floor for shares.
Shares aren’t expensive given its forecasted growth, with the current 25.8X forward 12-month earnings multiple historically low. The current PEG ratio works out to 0.9X, reflecting that investors are paying a fair price for the forecasted growth.
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.
Chewy would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Five Below is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise. The company primarily targets teenagers or pre-teen shoppers for its products.
Analysts have taken a bearish stance on the company’s earnings outlook, landing it into a Zacks Rank #5 (Strong Sell).
In addition, the company is in the Zacks Retail – Miscellaneous industry, which is currently ranked in the bottom 20% of all Zacks industries.
Let’s take a closer look at the company.
Five Below
Recent quarterly results that have fallen short of expectations have caused FIVE shares to suffer, seeing post-earnings plunges following back-to-back releases. Concerning its latest print, the company fell short of the Zacks Consensus EPS estimate by 3%, with sales of $811 million also falling short of expectations.
Earnings fell 11% year over year, whereas sales climbed 12%. Comparable store sales declined 2.3% from the same period last year.
The company provided soft guidance for its current fiscal year following the results, expecting an approximate 3% – 5% decrease in comparable store sales year-over-year. Analysts have adjusted their revenue expectations accordingly as well, with the $3.8 billion expected down 8% over the last year.
Image Source: Zacks Investment Research
Nonetheless, the company could soon enjoy a turnaround thanks to a recent CEO transition. It was recently announced that Joel Anderson (CEO) would be stepping down from his role to pursue other interests. Former CEO Thomas Vellios is intermittently leading the charge while the company continues its search for a permanent CEO.
Bottom Line
Negative earnings estimate revisions, resulting from soft quarterly results, paint a challenging picture for the company’s shares in the near term.
Five Below 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:
Bitcoin Bull Run May Lead to Stock Gains for These 3 Companies
Since Bitcoin (BTC) was launched in 2009, it has witnessed an unprecedented rise from a penny to a record high of $73,750 on March 14. The Bitcoin halving event in April, however, failed to jack up its price. Instead, the price of BTC fell below $60,000 and entered correction territory the following month.
BTC recently defied the bearish trend and bounced back above $63,000. BTC jumped 5.7% on July 15 to trade as high as $63.768, per Dow Jones Market Data. The price of BTC may still be well below its all-time high but has surged more than 50% this year. BTC’s price has soared 12.6% in the last seven days raising speculation of an imminent substantial upswing.
Is the Bitcoin Bull Run Here?
A plethora of factors are fueling the BTC surge. Donald Trump’s recent unsuccessful assassination attempt bolstered the likelihood of him winning the presidential election this year. Trump is professed to be more welcoming to the crypto industry than Biden. He has started to accept donations in crypto for the presidential election campaign.
Bitcoin miners, meanwhile, are undergoing significant strain, which could compel them to shut down their operations. This will lead to less selling pressure on the crypto market and pave the way for a potential recovery in BTC price.
Moreover, the absence of sustained downward pressure at the moment could enable the price of BTC to scale upward. This is because Bitcoin liquidations by the German government have concluded. On the other hand, for quite some time, Bitcoin whales have begun to acquire additional BTC, which could reduce the supply of BTC and lead to an uptick in price.
Lest we forget, both institutional and retail adoption of BTC will help the world’s numero uno cryptocurrency’s price to scale upward in the long run. Additionally, expectations of interest rate cuts as early as fall will lead to a weaker dollar and increase investors’ interest in alternative assets such as BTC (read more: Rise in Rate-Cut Bets May Prompt Stock Gains for GOLD, KGC, FNV).
3 Crypto Stocks on the Radar: COIN, SQ, NVDA
With the price of BTC set to move northward, things are looking hunky-dory for Coinbase Global, Inc., Block, Inc. and NVIDIA Corp., which can make the most of the flagship cryptocurrency’s bullish momentum.
The Zacks Consensus Estimate for Coinbase’s next-year earnings has increased by 15.4% over the past 60 days. Coinbase’s expected earnings growth rate for the current year is 1,740.5%. Its estimated revenue growth rate for the current year is 92%.
Block
Block is a digital payment company that generates revenues from products like Cash App. In this platform, Bitcoin is purchased and sold. Block currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Block’s current-year earnings has increased by 0.7% over the past 60 days. Block’s expected earnings growth rate for the current year is 72.8%. Its estimated revenue growth rate for the current year is 14.9%.
NVIDIA
Semiconductor behemoth NVIDIA is designing graphics processing units for mining cryptos such as Bitcoin. NVIDIA presently has a Zacks Rank #1.
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased by 11.2% over the past 60 days. NVIDIA’s expected earnings growth rate for the current year is 106.2%. Its estimated revenue growth rate for the current year is 93%.
Shares of Coinbase, Block and NVIDIA have gained 9.3%, 11.7% and 4%, respectively, month to date.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
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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Chewy and Five Industries have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 17, 2024 – Zacks Equity Research shares Chewy (CHWY - Free Report) as the Bull of the Day and Five Below (FIVE - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Coinbase Global, Inc. (COIN - Free Report) , Block, Inc. (SQ - Free Report) and NVIDIA Corp. (NVDA - Free Report)
Here is a synopsis of all five stocks:
Bull of the Day:
Chewy operates as an online pet retailer, offering pet products that include dry and wet food, toys, mats, biscuits, vitamins, and supplements. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy), with analysts raising their expectations across the board.
In addition to favorable earnings estimate revisions, the stock resides in the Zacks Internet – Commerce industry, currently ranked in the top 24% of all Zacks industries. Let’s take a closer look at how the company currently stacks up.
Chewy Shares Soar Post-Earnings
Chewy’s latest set of quarterly results pleased investors, with shares soaring post-earnings thanks to an 88% year-over-year pop in EPS. Up 68% just over the last three months, shares have been red-hot, displaying notable outperformance.
Operational efficiencies have aided CHWY’s profitability nicely, with earnings forecasted to jump nearly 40% in its current fiscal year (FY25). It’s worth noting that the company also recently announced a $500 million share repurchase program, which could help put in a floor for shares.
Shares aren’t expensive given its forecasted growth, with the current 25.8X forward 12-month earnings multiple historically low. The current PEG ratio works out to 0.9X, reflecting that investors are paying a fair price for the forecasted growth.
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.
Chewy would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Five Below is a specialty value chain retailer that provides a wide range of premium quality and trendy merchandise. The company primarily targets teenagers or pre-teen shoppers for its products.
Analysts have taken a bearish stance on the company’s earnings outlook, landing it into a Zacks Rank #5 (Strong Sell).
In addition, the company is in the Zacks Retail – Miscellaneous industry, which is currently ranked in the bottom 20% of all Zacks industries.
Let’s take a closer look at the company.
Five Below
Recent quarterly results that have fallen short of expectations have caused FIVE shares to suffer, seeing post-earnings plunges following back-to-back releases. Concerning its latest print, the company fell short of the Zacks Consensus EPS estimate by 3%, with sales of $811 million also falling short of expectations.
Earnings fell 11% year over year, whereas sales climbed 12%. Comparable store sales declined 2.3% from the same period last year.
The company provided soft guidance for its current fiscal year following the results, expecting an approximate 3% – 5% decrease in comparable store sales year-over-year. Analysts have adjusted their revenue expectations accordingly as well, with the $3.8 billion expected down 8% over the last year.
Image Source: Zacks Investment Research
Nonetheless, the company could soon enjoy a turnaround thanks to a recent CEO transition. It was recently announced that Joel Anderson (CEO) would be stepping down from his role to pursue other interests. Former CEO Thomas Vellios is intermittently leading the charge while the company continues its search for a permanent CEO.
Bottom Line
Negative earnings estimate revisions, resulting from soft quarterly results, paint a challenging picture for the company’s shares in the near term.
Five Below 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:
Bitcoin Bull Run May Lead to Stock Gains for These 3 Companies
Since Bitcoin (BTC) was launched in 2009, it has witnessed an unprecedented rise from a penny to a record high of $73,750 on March 14. The Bitcoin halving event in April, however, failed to jack up its price. Instead, the price of BTC fell below $60,000 and entered correction territory the following month.
BTC recently defied the bearish trend and bounced back above $63,000. BTC jumped 5.7% on July 15 to trade as high as $63.768, per Dow Jones Market Data. The price of BTC may still be well below its all-time high but has surged more than 50% this year. BTC’s price has soared 12.6% in the last seven days raising speculation of an imminent substantial upswing.
Is the Bitcoin Bull Run Here?
A plethora of factors are fueling the BTC surge. Donald Trump’s recent unsuccessful assassination attempt bolstered the likelihood of him winning the presidential election this year. Trump is professed to be more welcoming to the crypto industry than Biden. He has started to accept donations in crypto for the presidential election campaign.
Bitcoin miners, meanwhile, are undergoing significant strain, which could compel them to shut down their operations. This will lead to less selling pressure on the crypto market and pave the way for a potential recovery in BTC price.
Moreover, the absence of sustained downward pressure at the moment could enable the price of BTC to scale upward. This is because Bitcoin liquidations by the German government have concluded. On the other hand, for quite some time, Bitcoin whales have begun to acquire additional BTC, which could reduce the supply of BTC and lead to an uptick in price.
Lest we forget, both institutional and retail adoption of BTC will help the world’s numero uno cryptocurrency’s price to scale upward in the long run. Additionally, expectations of interest rate cuts as early as fall will lead to a weaker dollar and increase investors’ interest in alternative assets such as BTC (read more: Rise in Rate-Cut Bets May Prompt Stock Gains for GOLD, KGC, FNV).
3 Crypto Stocks on the Radar: COIN, SQ, NVDA
With the price of BTC set to move northward, things are looking hunky-dory for Coinbase Global, Inc., Block, Inc. and NVIDIA Corp., which can make the most of the flagship cryptocurrency’s bullish momentum.
Coinbase
Crypto-trading platform Coinbase, where several digital assets, including Bitcoin, are traded, has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The Zacks Consensus Estimate for Coinbase’s next-year earnings has increased by 15.4% over the past 60 days. Coinbase’s expected earnings growth rate for the current year is 1,740.5%. Its estimated revenue growth rate for the current year is 92%.
Block
Block is a digital payment company that generates revenues from products like Cash App. In this platform, Bitcoin is purchased and sold. Block currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Block’s current-year earnings has increased by 0.7% over the past 60 days. Block’s expected earnings growth rate for the current year is 72.8%. Its estimated revenue growth rate for the current year is 14.9%.
NVIDIA
Semiconductor behemoth NVIDIA is designing graphics processing units for mining cryptos such as Bitcoin. NVIDIA presently has a Zacks Rank #1.
The Zacks Consensus Estimate for NVIDIA’s current-year earnings has increased by 11.2% over the past 60 days. NVIDIA’s expected earnings growth rate for the current year is 106.2%. Its estimated revenue growth rate for the current year is 93%.
Shares of Coinbase, Block and NVIDIA have gained 9.3%, 11.7% and 4%, respectively, month to date.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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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.