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Vertiv and Robert Half have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – July 30, 2024 – Zacks Equity Research shares Vertiv (VRT - Free Report) as the Bull of the Day and Robert Half Inc. (RHI - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on F5 (FFIV - Free Report) , Lattice Semiconductor (LSCC - Free Report) and Sprouts Farmers Market (SFM - Free Report) .
Vertiv is a Zacks Rank #1 (Strong Buy) that has an D for Value and a B for Growth. This company is a beneficiary of the AI boom as the company makes equipment for data centers. The demand for data from AI programs has led to explosive growth in the data center industry. Let’s explore more about this company in this Bull of The Day article.
Description
Vertiv Holdings Co provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. Vertiv Holdings Co, formerly known as GS Acquisition Holdings Corp, is headquartered in Columbus, Ohio.
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.
Vertiv has a solid earnings history with the company topping the Zacks Consensus in each of the last four quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 12.9%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Estimates are moving higher for Vertiv.
This quarter has moved up from 65 cents to 70 cents over the last week.
Next quarter is up from 76 cents to 77 cents.
The full year 2024 has increased from $2.42 to $2.58.
Next year has also moved up from $3.13 to $3.31
Growth
The company has beat the sales estimate in each of the last two quarters. Most recently the company beat the topline by $9M in reporting $1.953B. That represents 12.6% growth on a year over year basis and a 19.14% growth rate over the most recent quarter.
For 2024 the company is expected to show 11.86% growth and that accelerates to 12.97% in 2025.
Valuation
The forward PE is 29x and that is right about where you expect a growth stock like this to be priced. Price to book is 20x and that metric is a little high. Price to sales is at 4x which is pretty reasonable given the growth.
Margins are looking good with the Zacks site showing operating margins moving from 9.97% to 10.91% and up to 11.75% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Recent Guidance
The most recent earnings report contained guidance that Wall Street didn’t like very much. One segment of the company is now expecting 10-15% growth when 60% was expected, and that was the reason the stock fell nearly 16% after the report. At the end of the day, the company is still expected to show revenue growth this year and an acceleration next year. This is certainly a stock that investors should consider when looking to buy the dip.
Robert Half Inc. is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower following an earnings miss in July. The company is one of the largest providers of professional consulting and staffing services. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Robert Half, Inc. engages in the provision of talent solutions and business consulting services. It operates through the following segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti. The Contract Talent Solutions segment refers to the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support.
The Permanent Placement Talent Solutions segment focuses on accounting, finance, tax, and accounting operations personnel. The Protiviti segment solves problems in finance, technology, operations, data, digital, legal, human resources, governance, risk, and internal audit. The company was founded by Robert Half in 1948 and is headquartered in Menlo Park, CA.
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 Robert Half Inc, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a miss with the company posting $0.66 when the consensus was calling for $0.71. 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 RHI I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.92 to $2.69 over the last 7 days.
The next year has moved from $3.86 to $3.63 over the last 7 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:
Flat Trading Ahead of Key Q2, Econ Data
It is a consequential week of trading, just not yet. We’ll have to wait til after the open for the Job Openings and Labor Turnover Survey (JOLTS) for June — marking the first of the Jobs Week numbers which concludes Friday morning with the Employment Situation report from the U.S. government. We’ll also see new Consumer Confidence numbers for July and Case-Shiller home prices for May. This will also be the first day of the new Federal Open Market Committee (FOMC) meeting, which concludes Wednesday afternoon when Fed Chair Jerome Powell again tells us why they’re not raising interest rates yet.
We’re now getting to a key point in the Fed’s plan. With employment decelerating from the robust highs of a year or two ago, and inflation metrics moving rather steadily down toward the ideal +2%, the trick will be whether the Fed will cut rates at the right time. Too early and, like in the 1970s and early ’80s, we saw inflation rekindle and surge past prior highs; too late and we risk burrowing into recession with higher unemployment and still-high interest rate levels. And if July is not quite the right time, we expect Powell to explain why the Fed will make its first move in several years at the September meeting.
Seattle-based F5 shares went up +10% in yesterday's after-market. The Internet networking company posted fiscal Q3 earnings of $3.36 per share, above the $2.97 analysts were expecting and the $3.21 per share reported in the year-ago quarter. Revenues came in at $695 million, neatly above the $686 million expected. Next-quarter guides have both improved, to $3.38-3.50 in next-quarter earnings on $720-740 million in sales — both improvements on the $3.32 per share and $715 million previously expected.
Lattice Semiconductor missed Q2 estimates after the closing bell. Earnings of 23 cents per share missed the Zacks consensus by a penny, while revenues of $124 million came up short of the $130 million anticipated. Revenue guidance was also lowered, to a range of $117-137 million from the previously projected $142.4 million. This is the first earnings miss for Lattice since 2018. Shares have fallen -10% in late trading.
Sprouts Farmers Market, a grocer chain based in Phoenix, is having the best post-earnings rally of all. Shares are up +13% on sizable beats on both top and bottom lines: earnings of 94 cents per share trounced the 77 cents in the Zacks consensus, with revenues of $1.89 billion improving from the $1.83 billion estimate. Next-quarter and full-year earnings guidance has ramped up, as a result. Sprouts shares are now +85% year to date, including Monday afternoon’s buy-in.
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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Vertiv and Robert Half have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – July 30, 2024 – Zacks Equity Research shares Vertiv (VRT - Free Report) as the Bull of the Day and Robert Half Inc. (RHI - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on F5 (FFIV - Free Report) , Lattice Semiconductor (LSCC - Free Report) and Sprouts Farmers Market (SFM - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Vertiv is a Zacks Rank #1 (Strong Buy) that has an D for Value and a B for Growth. This company is a beneficiary of the AI boom as the company makes equipment for data centers. The demand for data from AI programs has led to explosive growth in the data center industry. Let’s explore more about this company in this Bull of The Day article.
Description
Vertiv Holdings Co provides digital infrastructure and continuity solutions. It offers hardware, software, analytics and ongoing services. Vertiv Holdings Co, formerly known as GS Acquisition Holdings Corp, is headquartered in Columbus, Ohio.
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.
Vertiv has a solid earnings history with the company topping the Zacks Consensus in each of the last four quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 12.9%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Estimates are moving higher for Vertiv.
This quarter has moved up from 65 cents to 70 cents over the last week.
Next quarter is up from 76 cents to 77 cents.
The full year 2024 has increased from $2.42 to $2.58.
Next year has also moved up from $3.13 to $3.31
Growth
The company has beat the sales estimate in each of the last two quarters. Most recently the company beat the topline by $9M in reporting $1.953B. That represents 12.6% growth on a year over year basis and a 19.14% growth rate over the most recent quarter.
For 2024 the company is expected to show 11.86% growth and that accelerates to 12.97% in 2025.
Valuation
The forward PE is 29x and that is right about where you expect a growth stock like this to be priced. Price to book is 20x and that metric is a little high. Price to sales is at 4x which is pretty reasonable given the growth.
Margins are looking good with the Zacks site showing operating margins moving from 9.97% to 10.91% and up to 11.75% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Recent Guidance
The most recent earnings report contained guidance that Wall Street didn’t like very much. One segment of the company is now expecting 10-15% growth when 60% was expected, and that was the reason the stock fell nearly 16% after the report. At the end of the day, the company is still expected to show revenue growth this year and an acceleration next year. This is certainly a stock that investors should consider when looking to buy the dip.
Bear of the Day:
Robert Half Inc. is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower following an earnings miss in July. The company is one of the largest providers of professional consulting and staffing services. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Robert Half, Inc. engages in the provision of talent solutions and business consulting services. It operates through the following segments: Contract Talent Solutions, Permanent Placement Talent Solutions, and Protiviti. The Contract Talent Solutions segment refers to the fields of finance and accounting, technology, marketing and creative, legal, and administrative and customer support.
The Permanent Placement Talent Solutions segment focuses on accounting, finance, tax, and accounting operations personnel. The Protiviti segment solves problems in finance, technology, operations, data, digital, legal, human resources, governance, risk, and internal audit. The company was founded by Robert Half in 1948 and is headquartered in Menlo Park, CA.
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 Robert Half Inc, I see three beats of the Zacks Consensus Estimate and one miss. The most recent quarter was a miss with the company posting $0.66 when the consensus was calling for $0.71. 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 RHI I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $2.92 to $2.69 over the last 7 days.
The next year has moved from $3.86 to $3.63 over the last 7 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:
Flat Trading Ahead of Key Q2, Econ Data
It is a consequential week of trading, just not yet. We’ll have to wait til after the open for the Job Openings and Labor Turnover Survey (JOLTS) for June — marking the first of the Jobs Week numbers which concludes Friday morning with the Employment Situation report from the U.S. government. We’ll also see new Consumer Confidence numbers for July and Case-Shiller home prices for May. This will also be the first day of the new Federal Open Market Committee (FOMC) meeting, which concludes Wednesday afternoon when Fed Chair Jerome Powell again tells us why they’re not raising interest rates yet.
We’re now getting to a key point in the Fed’s plan. With employment decelerating from the robust highs of a year or two ago, and inflation metrics moving rather steadily down toward the ideal +2%, the trick will be whether the Fed will cut rates at the right time. Too early and, like in the 1970s and early ’80s, we saw inflation rekindle and surge past prior highs; too late and we risk burrowing into recession with higher unemployment and still-high interest rate levels. And if July is not quite the right time, we expect Powell to explain why the Fed will make its first move in several years at the September meeting.
Seattle-based F5 shares went up +10% in yesterday's after-market. The Internet networking company posted fiscal Q3 earnings of $3.36 per share, above the $2.97 analysts were expecting and the $3.21 per share reported in the year-ago quarter. Revenues came in at $695 million, neatly above the $686 million expected. Next-quarter guides have both improved, to $3.38-3.50 in next-quarter earnings on $720-740 million in sales — both improvements on the $3.32 per share and $715 million previously expected.
Lattice Semiconductor missed Q2 estimates after the closing bell. Earnings of 23 cents per share missed the Zacks consensus by a penny, while revenues of $124 million came up short of the $130 million anticipated. Revenue guidance was also lowered, to a range of $117-137 million from the previously projected $142.4 million. This is the first earnings miss for Lattice since 2018. Shares have fallen -10% in late trading.
Sprouts Farmers Market, a grocer chain based in Phoenix, is having the best post-earnings rally of all. Shares are up +13% on sizable beats on both top and bottom lines: earnings of 94 cents per share trounced the 77 cents in the Zacks consensus, with revenues of $1.89 billion improving from the $1.83 billion estimate. Next-quarter and full-year earnings guidance has ramped up, as a result. Sprouts shares are now +85% year to date, including Monday afternoon’s buy-in.
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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.