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HCA Healthcare and Adams Resources & Energy have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 21, 2024 – Zacks Equity Research shares HCA Healthcare (HCA - Free Report) as the Bull of the Day and Adams Resources & Energy (AE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on BP plc (BP - Free Report) , Exxon Mobil Corp. (XOM - Free Report) and SLB (SLB - Free Report) .
Sporting a Zacks Rank #1 (Strong Buy) and landing the Bull of the Day, HCA Healthcare’s stock has soared over +30% this year.
As the largest non-governmental operator of acute care hospitals in the United States, it’s noteworthy that HCA'’s Zacks Medical-Hospital Industry is currently in the top 1% of over 250 Zacks industries.
Keeping its vibrant business industry in mind, the rally in HCA could continue considering the company's reasonable valuation and attractive growth trajectory.
HCA’s Compelling Growth
Operating over 186 hospitals and approximately 2,400 ambulatory sites, HCA has continued to capitalize on its position as an urgent care leader. HCA’s leadership among hospitals has made its services a preferred choice among patients seeking treatment for severe injuries or illnesses related to urgent medical conditions.
On a same-facilities basis, HCA saw a 5% uptick during the second quarter in inpatient admissions, equivalent admissions, and emergency room visits. With HCA’s operations seeing a steady increase across the board, its total sales are now projected to rise 9% in fiscal 2024 and are slated to increase another 5% in FY25 to $74.25 billion.
More impressive has been HCA’s execution which has centered around a strategic plan to produce positive outcomes for patients while enhancing its facilities including better throughput and case management.
This has fueled HCA’s increased profitability with annual earnings expected to spike 17% this year and projected to rise another 10% in FY25 to $24.55 per share.
HCA’s Attractive Valuation
Making HCA’s robust top and bottom lines stand out even more is its valuation. To that point, HCA trades near the optimum level of less than 1X sales. Furthermore, HCA trades at a 16.8X forward earnings multiple which is roughly on par with its industry average of 16.5X and a noticeable discount to the S&P 500’s 23.6X.
HCA’s Dividend
What may further attract investors to HCA’s compelling growth is that the company has also rewarded shareholders by increasing its dividend.
HCA has a modest 0.71% annual dividend yield at $2.64 per share but has increased its payout six times in the last five years for an annualized growth rate of 14.7%. Plus, HCA’s 13% payout ratio suggests there is more than enough room for future dividend hikes.
Bottom Line
HCA shares have now risen over +200% in the last five years and the impressive price performance looks set to continue given the medical leader's attractive outlook and reasonable valuation. This combined with an increasing dividend makes HCA a very viable option to keep in the portfolio for both growth and value.
Landing a Zacks Rank #5 (Strong Sell) and the Bear of the Day, Adams Resources & Energy’s outlook indicates its stock could continue to plummet.
Engaged in the tank truck transportation of petroleum products and liquid chemicals, Adams Resources has attributed recent struggles to weak freight demand driving down rates, lower drilling activity in its primary basin, and ongoing operational cost inflation.
Profitability Struggles
After recently missing Q2 bottom line expectations earlier in the month, earnings estimate revisions have plummeted for Adams Resources. Notably, Q2 EPS came in at an adjusted loss of -$0.87 compared to the Zacks Consensus of -$0.21 a share.
Following the earnings miss, fiscal 2024 EPS estimates now call for an adjusted loss of -$1.59 compared to estimates of -$0.53 per share seven days ago. While Adams Resources is expected to turn a profit of $0.06 a share in FY25 estimates have dropped 54% from $0.13 per share a week ago.
Subpar Sales Growth
Unfortunately, Adams Resources' top line trajectory doesn’t provide excitement for its future ability to turn a profit with total sales expected to be virtually flat in FY24 and FY25.
Poor Stock Performance
Correlating with its dismal outlook, Adams Resources’ stock has plummeted -30% year to date to largely underperform the broader indexes.
Furthermore, this has trailed its Zacks Oil and Gas-Refining and Marketing Industry’s +9%, with Marathon Petroleum and Murphy USA being two peers that have soared more than +20% this year.
Takeaway
There are better options to invest in among the oils and energy sector than Adams Resources as downside risk continues to mount for the marketer and transporter of petroleum products. Investors looking for a rebound could be disappointed and may want to stay on the sidelines for now.
Additional content:
3 Large-Cap Energy Stocks Gaining from Automated Drilling
In the era of automation, energy investors are closely watching companies that deploy automated drilling technologies. These advanced systems, which require minimal human intervention, reduce downtime and labor costs, thereby boosting productivity and reliability.
By harnessing real-time data analytics and AI, automated drilling optimizes drilling parameters, enhancing precision and speeding up project timelines. Moreover, it lowers operational emissions and supports environmental compliance, aligning with sustainability objectives.
As a result, these technological advancements not only lead to substantial cost savings and risk mitigation but also provide a competitive advantage in a fluctuating market. Consequently, energy investors should keep an eye on major companies such as BP plc, Exxon Mobil Corp. and SLB, all of which are integrating automated drilling technologies. Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Large Energy Stocks in Spotlight
BP's Leadership in Digital and Automated Drilling
Azeri Central East (ACE) in Azerbaijan is BP’s most technologically advanced platform, equipped with cutting-edge, fully automated drilling rigs. This innovation allows BP to automate labor-intensive processes, leading to safer and more efficient operations while reducing operational emissions.
By investing in such advanced technology on the ACE platform, BP underscores its commitment to both the present energy system and the future of energy. The automation of the ACE platform sets a new industry standard, potentially driving long-term operational efficiencies and cost savings, further strengthening BP’s competitive edge.
ExxonMobil has been at the forefront of implementing autonomous drilling technology in deep water, particularly in its Guyana operations. Their proprietary drilling advisory system leverages AI to determine the optimal drilling parameters and enables closed-loop automation, allowing the drilling process to proceed without the need for human intervention. This technology greatly enhances safety, efficiency and cost-effectiveness by optimizing the rate of penetration and minimizing technical challenges.
SLB's Milestone in Fully Autonomous Drilling
SLB has reached a major milestone by autonomously drilling 99% of a 2.6-kilometer well section at Equinor's Peregrino C platform in Brazil. Utilizing SLB's digital solutions for surface automation and directional drilling, along with AI-driven technologies, the operation achieved a 60% increase in the rate of penetration. This advancement has resulted in reduced costs and lower carbon emissions.
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 managem ent 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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HCA Healthcare and Adams Resources & Energy have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 21, 2024 – Zacks Equity Research shares HCA Healthcare (HCA - Free Report) as the Bull of the Day and Adams Resources & Energy (AE - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on BP plc (BP - Free Report) , Exxon Mobil Corp. (XOM - Free Report) and SLB (SLB - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Sporting a Zacks Rank #1 (Strong Buy) and landing the Bull of the Day, HCA Healthcare’s stock has soared over +30% this year.
As the largest non-governmental operator of acute care hospitals in the United States, it’s noteworthy that HCA'’s Zacks Medical-Hospital Industry is currently in the top 1% of over 250 Zacks industries.
Keeping its vibrant business industry in mind, the rally in HCA could continue considering the company's reasonable valuation and attractive growth trajectory.
HCA’s Compelling Growth
Operating over 186 hospitals and approximately 2,400 ambulatory sites, HCA has continued to capitalize on its position as an urgent care leader. HCA’s leadership among hospitals has made its services a preferred choice among patients seeking treatment for severe injuries or illnesses related to urgent medical conditions.
On a same-facilities basis, HCA saw a 5% uptick during the second quarter in inpatient admissions, equivalent admissions, and emergency room visits. With HCA’s operations seeing a steady increase across the board, its total sales are now projected to rise 9% in fiscal 2024 and are slated to increase another 5% in FY25 to $74.25 billion.
More impressive has been HCA’s execution which has centered around a strategic plan to produce positive outcomes for patients while enhancing its facilities including better throughput and case management.
This has fueled HCA’s increased profitability with annual earnings expected to spike 17% this year and projected to rise another 10% in FY25 to $24.55 per share.
HCA’s Attractive Valuation
Making HCA’s robust top and bottom lines stand out even more is its valuation. To that point, HCA trades near the optimum level of less than 1X sales. Furthermore, HCA trades at a 16.8X forward earnings multiple which is roughly on par with its industry average of 16.5X and a noticeable discount to the S&P 500’s 23.6X.
HCA’s Dividend
What may further attract investors to HCA’s compelling growth is that the company has also rewarded shareholders by increasing its dividend.
HCA has a modest 0.71% annual dividend yield at $2.64 per share but has increased its payout six times in the last five years for an annualized growth rate of 14.7%. Plus, HCA’s 13% payout ratio suggests there is more than enough room for future dividend hikes.
Bottom Line
HCA shares have now risen over +200% in the last five years and the impressive price performance looks set to continue given the medical leader's attractive outlook and reasonable valuation. This combined with an increasing dividend makes HCA a very viable option to keep in the portfolio for both growth and value.
Bear of the Day:
Landing a Zacks Rank #5 (Strong Sell) and the Bear of the Day, Adams Resources & Energy’s outlook indicates its stock could continue to plummet.
Engaged in the tank truck transportation of petroleum products and liquid chemicals, Adams Resources has attributed recent struggles to weak freight demand driving down rates, lower drilling activity in its primary basin, and ongoing operational cost inflation.
Profitability Struggles
After recently missing Q2 bottom line expectations earlier in the month, earnings estimate revisions have plummeted for Adams Resources. Notably, Q2 EPS came in at an adjusted loss of -$0.87 compared to the Zacks Consensus of -$0.21 a share.
Following the earnings miss, fiscal 2024 EPS estimates now call for an adjusted loss of -$1.59 compared to estimates of -$0.53 per share seven days ago. While Adams Resources is expected to turn a profit of $0.06 a share in FY25 estimates have dropped 54% from $0.13 per share a week ago.
Subpar Sales Growth
Unfortunately, Adams Resources' top line trajectory doesn’t provide excitement for its future ability to turn a profit with total sales expected to be virtually flat in FY24 and FY25.
Poor Stock Performance
Correlating with its dismal outlook, Adams Resources’ stock has plummeted -30% year to date to largely underperform the broader indexes.
Furthermore, this has trailed its Zacks Oil and Gas-Refining and Marketing Industry’s +9%, with Marathon Petroleum and Murphy USA being two peers that have soared more than +20% this year.
Takeaway
There are better options to invest in among the oils and energy sector than Adams Resources as downside risk continues to mount for the marketer and transporter of petroleum products. Investors looking for a rebound could be disappointed and may want to stay on the sidelines for now.
Additional content:
3 Large-Cap Energy Stocks Gaining from Automated Drilling
In the era of automation, energy investors are closely watching companies that deploy automated drilling technologies. These advanced systems, which require minimal human intervention, reduce downtime and labor costs, thereby boosting productivity and reliability.
By harnessing real-time data analytics and AI, automated drilling optimizes drilling parameters, enhancing precision and speeding up project timelines. Moreover, it lowers operational emissions and supports environmental compliance, aligning with sustainability objectives.
As a result, these technological advancements not only lead to substantial cost savings and risk mitigation but also provide a competitive advantage in a fluctuating market. Consequently, energy investors should keep an eye on major companies such as BP plc, Exxon Mobil Corp. and SLB, all of which are integrating automated drilling technologies. Each of these stocks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Large Energy Stocks in Spotlight
BP's Leadership in Digital and Automated Drilling
Azeri Central East (ACE) in Azerbaijan is BP’s most technologically advanced platform, equipped with cutting-edge, fully automated drilling rigs. This innovation allows BP to automate labor-intensive processes, leading to safer and more efficient operations while reducing operational emissions.
By investing in such advanced technology on the ACE platform, BP underscores its commitment to both the present energy system and the future of energy. The automation of the ACE platform sets a new industry standard, potentially driving long-term operational efficiencies and cost savings, further strengthening BP’s competitive edge.
ExxonMobil's Pioneering Autonomous Drilling Technology
ExxonMobil has been at the forefront of implementing autonomous drilling technology in deep water, particularly in its Guyana operations. Their proprietary drilling advisory system leverages AI to determine the optimal drilling parameters and enables closed-loop automation, allowing the drilling process to proceed without the need for human intervention. This technology greatly enhances safety, efficiency and cost-effectiveness by optimizing the rate of penetration and minimizing technical challenges.
SLB's Milestone in Fully Autonomous Drilling
SLB has reached a major milestone by autonomously drilling 99% of a 2.6-kilometer well section at Equinor's Peregrino C platform in Brazil. Utilizing SLB's digital solutions for surface automation and directional drilling, along with AI-driven technologies, the operation achieved a 60% increase in the rate of penetration. This advancement has resulted in reduced costs and lower carbon emissions.
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 managem ent 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.