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Vital Farms and J. B. Hunt have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 14, 2024 – Zacks Equity Research shares Vital Farms (VITL - Free Report) as the Bull of the Day and J. B. Hunt Transport Services (JBHT - 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) .
Vital Farms is a Zacks Rank #2 (Buy) that has a C for Value and an A for Growth. This company is a farm that offers eggs in several forms as well as egg products. The company just repoted a strong beat of the Zacks Consensus Estimate but the stock dropped 12% following the report. Let's explore more about this company in this Bull of The Day article.
Description
Vital Farms Inc. offers a range of produced pasture-raised foods. Its product, including shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. Vital Farms Inc. is based in AUSTIN, Texas.
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.
Vital Farms 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 84.5%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for Vital Farms.
This quarter has moved up from 14 cents down to 12 cents over the last week.
Next quarter is down a penny to 18 cents over the last week as well.
The full year 2024 has increased from $0.94 to $1.11 over the last 90 days.
Next year has also moved up from $1.13 to $1.19 over the last 90 days.
Growth
The company has beat the sales estimate in each of the last three quarters. Most recently the company beat the topline by $4M in reporting $147M in sales. That represents 2.5% revenue surprise.
For 2024 the company is expected to show 26.5% growth and next year is looking for 16.7% growth on the topline.
Valuation
The forward PE is 28x and that right about where you expect a growth stock like this to be priced. Price to book is 5.5x and that metric is a little high. Price to sales is at 2.5x which is pretty reasonable given the growth.
Margins are looking good with the Zacks site showing operating margins moving from 5.42% to 7.5% and up to 8.7% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Recent Dip Presents A Buying Opportunity
The most recent earnings report was a good one, but the stock dropped 12% in the session following the report. This marks the fist time in the last 6 quarters that the stock did not move higher following and earnings beat. The stock has come in from a recent high of $48, so this dip could represent a wonderful buying opportunity.
J. B. Hunt Transport Services is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower following a earnings miss in July. The company is one of the largest provider of transportation 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
J.B. Hunt Transport Services, Inc. engages in the provision of logistics solutions. It operates through the following segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS) and Truckload (JBT). The JBI segment offers intermodal freight operations for rail carriers. The DCS segment includes private fleet conversion and final-mile delivery services. The ICS segment provides single-source logistics management for clients who intend to outsource their transportation activities. It offers flatbed, refrigerated, expedited, less-than-truckload, dry-van, and intermodal freight services. The FMS segment provides final-mile delivery services to customers through a nationwide network of cross-dock and other delivery system network locations. The JBT segment is responsible for full-load, dry-van freight that is transported via roads and highways. The company was founded by Johnnie Bryan Hunt, Sr. and Johnelle D. Hunt on August 10, 1961, and is headquartered in Lowell, AR.
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 J. B. Hunt , I see seven straight misses of the Zacks Consensus Estimate. The most recent quarter was a miss with the company posting $1.32 when the consensus was calling for $15.54. 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 JBHT I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $6.53 to $5.73 over the last 60 days.
The next year has moved from $8.35 to $7.59 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:
Total U.S. Drilling Rig Tally Rises: Here's What It Means
In its weekly release, Baker Hughes Co. stated that the U.S. rig count was higher 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 Rises: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 588 in the week ended Aug 9, higher than the week-ago count of 586. The current national rig count, however, declined from the year-ago level of 654, 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 Aug 9 totaled 569, higher than the prior week's count of 566. In offshore resources, 19 rigs were operating, which decreased from the week-ago count of 20.
U.S. Oil Rig Count Rises: The oil rig count was 485 in the week ended Aug 9, higher than the week-ago figure of 482. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — was down from the year-ago figure of 525.
U.S. Natural Gas Rig Count Falls: The natural gas rig count of 97 was lower than the week-ago figure of 98. Moreover, the count of rigs exploring the commodity was below the year-ago week's tally of 123. 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 17 units, in line with the week-ago count. 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 571 was up 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 304, which was higher than the week-ago figure of 303. The count was, however, below the prior-year level of 327.
Outlook
The West Texas Intermediate crude price is hovering near $80 per barrel, 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, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company, carrying a Zacks Rank #3 (Hold), is likely to continue witnessing increased production volumes. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The pending Endeavor merger, expected to close in the fourth quarter of this year, will significantly increase its Permian footprint, which the company cited at a combined pro forma scale of approximately 838,000 net acres. With the merger, FANG will have more inventory of core drilling locations with a break-even oil price of less than $40 per barrel.
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.
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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Vital Farms and J. B. Hunt have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 14, 2024 – Zacks Equity Research shares Vital Farms (VITL - Free Report) as the Bull of the Day and J. B. Hunt Transport Services (JBHT - 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:
Vital Farms is a Zacks Rank #2 (Buy) that has a C for Value and an A for Growth. This company is a farm that offers eggs in several forms as well as egg products. The company just repoted a strong beat of the Zacks Consensus Estimate but the stock dropped 12% following the report. Let's explore more about this company in this Bull of The Day article.
Description
Vital Farms Inc. offers a range of produced pasture-raised foods. Its product, including shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. Vital Farms Inc. is based in AUSTIN, Texas.
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.
Vital Farms 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 84.5%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for Vital Farms.
This quarter has moved up from 14 cents down to 12 cents over the last week.
Next quarter is down a penny to 18 cents over the last week as well.
The full year 2024 has increased from $0.94 to $1.11 over the last 90 days.
Next year has also moved up from $1.13 to $1.19 over the last 90 days.
Growth
The company has beat the sales estimate in each of the last three quarters. Most recently the company beat the topline by $4M in reporting $147M in sales. That represents 2.5% revenue surprise.
For 2024 the company is expected to show 26.5% growth and next year is looking for 16.7% growth on the topline.
Valuation
The forward PE is 28x and that right about where you expect a growth stock like this to be priced. Price to book is 5.5x and that metric is a little high. Price to sales is at 2.5x which is pretty reasonable given the growth.
Margins are looking good with the Zacks site showing operating margins moving from 5.42% to 7.5% and up to 8.7% over the last three quarters. Growing sales and higher margins will translate to higher earnings per share.
Recent Dip Presents A Buying Opportunity
The most recent earnings report was a good one, but the stock dropped 12% in the session following the report. This marks the fist time in the last 6 quarters that the stock did not move higher following and earnings beat. The stock has come in from a recent high of $48, so this dip could represent a wonderful buying opportunity.
Bear of the Day:
J. B. Hunt Transport Services is a Zacks Rank #5 (Strong Sell) as earnings estimates have tracked lower following a earnings miss in July. The company is one of the largest provider of transportation 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
J.B. Hunt Transport Services, Inc. engages in the provision of logistics solutions. It operates through the following segments: Intermodal (JBI), Dedicated Contract Services (DCS), Integrated Capacity Solutions (ICS), Final Mile Services (FMS) and Truckload (JBT). The JBI segment offers intermodal freight operations for rail carriers. The DCS segment includes private fleet conversion and final-mile delivery services. The ICS segment provides single-source logistics management for clients who intend to outsource their transportation activities. It offers flatbed, refrigerated, expedited, less-than-truckload, dry-van, and intermodal freight services. The FMS segment provides final-mile delivery services to customers through a nationwide network of cross-dock and other delivery system network locations. The JBT segment is responsible for full-load, dry-van freight that is transported via roads and highways. The company was founded by Johnnie Bryan Hunt, Sr. and Johnelle D. Hunt on August 10, 1961, and is headquartered in Lowell, AR.
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 J. B. Hunt , I see seven straight misses of the Zacks Consensus Estimate. The most recent quarter was a miss with the company posting $1.32 when the consensus was calling for $15.54. 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 JBHT I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $6.53 to $5.73 over the last 60 days.
The next year has moved from $8.35 to $7.59 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:
Total U.S. Drilling Rig Tally Rises: Here's What It Means
In its weekly release, Baker Hughes Co. stated that the U.S. rig count was higher 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 Rises: The number of rigs engaged in the exploration and production of oil and natural gas in the United States was 588 in the week ended Aug 9, higher than the week-ago count of 586. The current national rig count, however, declined from the year-ago level of 654, 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 Aug 9 totaled 569, higher than the prior week's count of 566. In offshore resources, 19 rigs were operating, which decreased from the week-ago count of 20.
U.S. Oil Rig Count Rises: The oil rig count was 485 in the week ended Aug 9, higher than the week-ago figure of 482. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — was down from the year-ago figure of 525.
U.S. Natural Gas Rig Count Falls: The natural gas rig count of 97 was lower than the week-ago figure of 98. Moreover, the count of rigs exploring the commodity was below the year-ago week's tally of 123. 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 17 units, in line with the week-ago count. 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 571 was up 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 304, which was higher than the week-ago figure of 303. The count was, however, below the prior-year level of 327.
Outlook
The West Texas Intermediate crude price is hovering near $80 per barrel, 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, has reported ongoing enhancements in the average productivity per well in the Midland Basin. Thus, the exploration and production company, carrying a Zacks Rank #3 (Hold), is likely to continue witnessing increased production volumes. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
The pending Endeavor merger, expected to close in the fourth quarter of this year, will significantly increase its Permian footprint, which the company cited at a combined pro forma scale of approximately 838,000 net acres. With the merger, FANG will have more inventory of core drilling locations with a break-even oil price of less than $40 per barrel.
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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https://www.zacks.com
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.