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Vertiv and Xerox have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – September 23, 2024 – Zacks Equity Research shares Vertiv Corp. (VRT - Free Report) as the Bull of the Day and Xerox (XRX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Macy's, Inc. (M - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Steven Madden, Ltd. (SHOO - Free Report) .
Zacks Rank #1 (Strong Buy) stock Vertiv Corp. offers infrastructure solutions for data centers and communication networks for commercial and industrial use. Vertiv provides services such as power and thermal management as well as IT infrastructure to guarantee the effectiveness and dependability of operations. By partnering with Vertiv, tech companies can enhance their efficiency levels, reduce disruptions in operations, and sustain connectivity.
Vertiv is essential in fueling AI advancement by offering the infrastructure for handling the computational requirements of AI applications. Furthermore, smart monitoring and software management aid in optimizing energy usage.
Vertiv: Selling "The Picks and Shovels" to the AI Revolution
OpenAI's ChatGPT recently became the fastest-growing consumer application of all time. Large language models (LLMs) such as the ChatGPT Chatbot require massive training models powered by data centers. Because of the growing interest in artificial intelligence, tech juggernauts such as Microsoft, Alphabet and Meta Platforms are in a data center arms race. Over the next six years, Jefferies Research expects data center capacity to soar 12x (from 2024 to 2030). Vertiv will be a main beneficiary.
Three Mile Island Revival Underscores AI Need for Energy
Friday morning, Microsoft and nuclear plant owner Constellation Energy announced a massive deal to revive the closed Three Mile Island by 2028 to power its data centers. Data center energy consumption is expected to account for as much as 8% of the world's electricity if no action is taken. The blockbuster $1.8 billion deal between MSFT and CEG underscores two critical factors in the AI revolution:
1. Big Tech's Commitment to Building out Data Centers.
2. Energy's Role in that Buildout.
Vertiv's business intersects where these megatrends meet. In 2023, Vertiv scored a partnership with Nvidia, the undisputed AI leader for its innovative and highly efficient cooling technologies for data centers, which was put on display during the United States Department of Energy's (DOE) "Cooler Chips" award program.
Vertiv is a Consistent Earnings Winner
Vertiv has eclipsed Zacks Consensus Estimates for six straight quarters, and analysts forecast that earnings will continue to grow at a healthy double-digit pace well into 2025.
VRT Channel Breakout
VRT shares endured their first pullback in the current bull run. Typically, the first significant pullback in a leading stock in a leading industry is buyable.
Bottom Line
Datacenters are necessary ingredients for the AI revolution. Vertiv operates in the two most important and high-growth AI realms: datacenter and energy efficiency. Expect shares to notch fresh highs in late 2024 or early 2025.
Zacks Rank #5 (Strong Sell) Xerox is a Fortune 500 company recognized for its groundbreaking contributions to the printing, scanning, and photocopy technology industry. Beyond its digital printing machines, Xerox also provides document management solutions, workflow automation and IT support to help companies optimize their operations.
Xerox Suffers from a Digital World
Xerox was once so dominant in the photocopy and scanning business that the company's name became a verb. Instead of saying that they would fax something, people began to say they would "Xerox" it over. Though Xerox is still a leader in the traditional print, copy, and scanning business, it has consistently shrunk in recent years due to technological advances. The world has gone digital, and technology has advanced precipitously over the past twenty years.
Gone are the days of needing a bulky machine to scan documents. Today, anyone can quickly scan a document within seconds using their Apple iPhone or Google Android devices. Meanwhile, software services like DocuSign,which allows companies and individuals to manage electronic agreements with electronic, have cropped up and continue to eat into Xerox's business. Finally, digitization has only increased as more employees work from home following the fallout of the COVID-19 pandemic. As a result, the company's sales have been stagnant for several years.
Xerox's Business has Been Commoditized
Several companies, such as HP, Canon and Lexmark, have entered the printing business and are proving formidable competition for XRX. Investors can recognize the impact of competition by viewing a chart of Xerox's gross margins, which have steadily decreased over the past few years.
Xerox Continues to Fall Short of Wall Street Expectations
Xerox is suffering from "caretaker management," which occurs when an older (and often successful) company is run by a management team that is content with the status quo and is risk averse. The lack of innovation coupled with the slowdown in Xerox's one-dimensional business is evident in the company's earnings surprise history. XRX has fallen short of Zacks Consensus Estimates for three out of the past four quarters, with an average surprise of -25.39%. In other words, expectations are low, yet the company continues to fall short of them.
Relative Weakness & Opportunity Cost of Holding XRX
If you purchased XRX 25 years ago, you would be down more than 80% (the S&P is up nearly 800% over this period). With 25 years of lackluster price action, relative weakness, and a lack of bullish catalysts, there is little to be excited about.
Bottom Line
Xerox suffering from new technology, increased competition, falling sales, and shrinking margins. To make matters worse, management is doing little to innovate and the company continues to fall short of Wall Street Expectations.
Additional content:
Macy's to Expand Workforce with 31,500 Seasonal Hires for the Holidays
Macy's, Inc. has announced plans to hire more than 31,500 full and part-time seasonal employees for the upcoming holiday season. These positions will support operations at Macy's, Bloomingdale's and Bluemercury stores, as well as its distribution centers. The aim is to enhance customer experiences during the holidays by ensuring sufficient staffing across key locations.
Macy's offers a streamlined online application process, with many candidates receiving job offers within 48 hours. In addition to online applications, the company will host four nationwide, in-person hiring events at all stores and distribution centers on Sept. 26, Oct. 24, Nov. 21 and Dec. 4, 2024. During these events, candidates can expect on-the-spot interviews.
Candidates interested in joining Macy's seasonal team can apply through the company's brand-specific career sites, which include macysJOBS.com for Macy's, bloomingdalesJOBS.com for Bloomingdale's and bluemercury.com for Bluemercury. They can also apply by visiting any Macy's, Bloomingdale's, or Bluemercury store locations nationwide during these four holiday hiring events.
Supply-chain positions are also available, and candidates can apply online or in person at Macy's distribution centers, which are located in Cheshire, CT; Goodyear, AZ; Martinsburg, WV; North Jackson, OH; Portland, TN; and Tulsa, OK.
Job Opportunities of Macy's by Key Regions
Seasonal positions will be open at all store and distribution centers across the United States, with increased hiring in several key markets. For Macy's, these regions include Boston, MA; Chicago, IL; Houston, TX; Los Angeles, CA; Miami, FL; and Minneapolis, MN.
Bloomingdale's is focusing on hiring in Boston; Chicago; Los Angeles; New York, NY; Northern New Jersey; and Southern California.
Bluemercury is concentrating its seasonal hiring efforts in Chicago; New York; Northern New Jersey; San Diego and San Francisco, CA; and Washington, DC.
Macy's Commitment to Professional Development
The company emphasizes a culture of trust, collaboration and transparent communication, which creates a welcoming and dynamic work environment. M prioritizes the well-being of its employees by fostering meaningful relationships and providing opportunities for personal growth. This culture of support and respect enables employees to deliver better service and experiences to customers.
Macy's is also committed to investing in the knowledge, skills and career growth of its employees. The company offers many opportunities for real-time reskilling, upskilling and leadership development at every stage of an employee's career. Macy's internal and external expertise supports employee development, helping colleagues grow into future leaders within the company.
Macy's Comprehensive Rewards & Financial Support
M's rewards strategy is designed to recognize individual and team performances while prioritizing employee well-being through comprehensive benefits programs. Macy's offers competitive pay, generous employee discounts at Macy's and Bloomingdale's, and a variety of financial benefits.
Key financial benefits include earned wage access before scheduled paydays, financial literacy resources and access to the North Star Relief Fund, which provides rapid financial assistance to employees facing personal hardships or natural disasters. The company's pay ranges are transparently available for all job postings nationwide, giving employees a clear understanding of its earning potential.
Wrapping Up
Macy's observed a significant challenge in the form of consumer spending reallocation toward non-discretionary items. The shifting consumer spending patterns underscore the need for the company to adapt its product offerings to meet evolving consumer preferences. Comparable sales fell 4% on an owned basis and 3.3% on an owned-plus-licensed-plus-marketplace basis in the second-quarter fiscal 2024 from the prior-year quarter.
Shares of this Zacks Rank #4 (Sell) company have lost 26.3% in the past six months compared with the industry's 25.6% decline.
Nonetheless, Macy's is dedicated to providing a supportive work environment that prioritizes employee growth and recognizes the importance of well-being, ensuring colleagues are able to delight customers throughout the busy holiday season.
Stocks to Consider
Some better-ranked stocks are Abercrombie & Fitch Co. and Steven Madden, Ltd..
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie's fiscal 2025 earnings and sales indicates growth of 63.4% and 13.1%, respectively, from the fiscal 2024 levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden's 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.
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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Vertiv and Xerox have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – September 23, 2024 – Zacks Equity Research shares Vertiv Corp. (VRT - Free Report) as the Bull of the Day and Xerox (XRX - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Macy's, Inc. (M - Free Report) , Abercrombie & Fitch Co. (ANF - Free Report) and Steven Madden, Ltd. (SHOO - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Zacks Rank #1 (Strong Buy) stock Vertiv Corp. offers infrastructure solutions for data centers and communication networks for commercial and industrial use. Vertiv provides services such as power and thermal management as well as IT infrastructure to guarantee the effectiveness and dependability of operations. By partnering with Vertiv, tech companies can enhance their efficiency levels, reduce disruptions in operations, and sustain connectivity.
Vertiv is essential in fueling AI advancement by offering the infrastructure for handling the computational requirements of AI applications. Furthermore, smart monitoring and software management aid in optimizing energy usage.
Vertiv: Selling "The Picks and Shovels" to the AI Revolution
OpenAI's ChatGPT recently became the fastest-growing consumer application of all time. Large language models (LLMs) such as the ChatGPT Chatbot require massive training models powered by data centers. Because of the growing interest in artificial intelligence, tech juggernauts such as Microsoft, Alphabet and Meta Platforms are in a data center arms race. Over the next six years, Jefferies Research expects data center capacity to soar 12x (from 2024 to 2030). Vertiv will be a main beneficiary.
Three Mile Island Revival Underscores AI Need for Energy
Friday morning, Microsoft and nuclear plant owner Constellation Energy announced a massive deal to revive the closed Three Mile Island by 2028 to power its data centers. Data center energy consumption is expected to account for as much as 8% of the world's electricity if no action is taken. The blockbuster $1.8 billion deal between MSFT and CEG underscores two critical factors in the AI revolution:
1. Big Tech's Commitment to Building out Data Centers.
2. Energy's Role in that Buildout.
Vertiv's business intersects where these megatrends meet. In 2023, Vertiv scored a partnership with Nvidia, the undisputed AI leader for its innovative and highly efficient cooling technologies for data centers, which was put on display during the United States Department of Energy's (DOE) "Cooler Chips" award program.
Vertiv is a Consistent Earnings Winner
Vertiv has eclipsed Zacks Consensus Estimates for six straight quarters, and analysts forecast that earnings will continue to grow at a healthy double-digit pace well into 2025.
VRT Channel Breakout
VRT shares endured their first pullback in the current bull run. Typically, the first significant pullback in a leading stock in a leading industry is buyable.
Bottom Line
Datacenters are necessary ingredients for the AI revolution. Vertiv operates in the two most important and high-growth AI realms: datacenter and energy efficiency. Expect shares to notch fresh highs in late 2024 or early 2025.
Bear of the Day:
Zacks Rank #5 (Strong Sell) Xerox is a Fortune 500 company recognized for its groundbreaking contributions to the printing, scanning, and photocopy technology industry. Beyond its digital printing machines, Xerox also provides document management solutions, workflow automation and IT support to help companies optimize their operations.
Xerox Suffers from a Digital World
Xerox was once so dominant in the photocopy and scanning business that the company's name became a verb. Instead of saying that they would fax something, people began to say they would "Xerox" it over. Though Xerox is still a leader in the traditional print, copy, and scanning business, it has consistently shrunk in recent years due to technological advances. The world has gone digital, and technology has advanced precipitously over the past twenty years.
Gone are the days of needing a bulky machine to scan documents. Today, anyone can quickly scan a document within seconds using their Apple iPhone or Google Android devices. Meanwhile, software services like DocuSign,which allows companies and individuals to manage electronic agreements with electronic, have cropped up and continue to eat into Xerox's business. Finally, digitization has only increased as more employees work from home following the fallout of the COVID-19 pandemic. As a result, the company's sales have been stagnant for several years.
Xerox's Business has Been Commoditized
Several companies, such as HP, Canon and Lexmark, have entered the printing business and are proving formidable competition for XRX. Investors can recognize the impact of competition by viewing a chart of Xerox's gross margins, which have steadily decreased over the past few years.
Xerox Continues to Fall Short of Wall Street Expectations
Xerox is suffering from "caretaker management," which occurs when an older (and often successful) company is run by a management team that is content with the status quo and is risk averse. The lack of innovation coupled with the slowdown in Xerox's one-dimensional business is evident in the company's earnings surprise history. XRX has fallen short of Zacks Consensus Estimates for three out of the past four quarters, with an average surprise of -25.39%. In other words, expectations are low, yet the company continues to fall short of them.
Relative Weakness & Opportunity Cost of Holding XRX
If you purchased XRX 25 years ago, you would be down more than 80% (the S&P is up nearly 800% over this period). With 25 years of lackluster price action, relative weakness, and a lack of bullish catalysts, there is little to be excited about.
Bottom Line
Xerox suffering from new technology, increased competition, falling sales, and shrinking margins. To make matters worse, management is doing little to innovate and the company continues to fall short of Wall Street Expectations.
Additional content:
Macy's to Expand Workforce with 31,500 Seasonal Hires for the Holidays
Macy's, Inc. has announced plans to hire more than 31,500 full and part-time seasonal employees for the upcoming holiday season. These positions will support operations at Macy's, Bloomingdale's and Bluemercury stores, as well as its distribution centers. The aim is to enhance customer experiences during the holidays by ensuring sufficient staffing across key locations.
Macy's offers a streamlined online application process, with many candidates receiving job offers within 48 hours. In addition to online applications, the company will host four nationwide, in-person hiring events at all stores and distribution centers on Sept. 26, Oct. 24, Nov. 21 and Dec. 4, 2024. During these events, candidates can expect on-the-spot interviews.
Candidates interested in joining Macy's seasonal team can apply through the company's brand-specific career sites, which include macysJOBS.com for Macy's, bloomingdalesJOBS.com for Bloomingdale's and bluemercury.com for Bluemercury. They can also apply by visiting any Macy's, Bloomingdale's, or Bluemercury store locations nationwide during these four holiday hiring events.
Supply-chain positions are also available, and candidates can apply online or in person at Macy's distribution centers, which are located in Cheshire, CT; Goodyear, AZ; Martinsburg, WV; North Jackson, OH; Portland, TN; and Tulsa, OK.
Job Opportunities of Macy's by Key Regions
Seasonal positions will be open at all store and distribution centers across the United States, with increased hiring in several key markets. For Macy's, these regions include Boston, MA; Chicago, IL; Houston, TX; Los Angeles, CA; Miami, FL; and Minneapolis, MN.
Bloomingdale's is focusing on hiring in Boston; Chicago; Los Angeles; New York, NY; Northern New Jersey; and Southern California.
Bluemercury is concentrating its seasonal hiring efforts in Chicago; New York; Northern New Jersey; San Diego and San Francisco, CA; and Washington, DC.
Macy's Commitment to Professional Development
The company emphasizes a culture of trust, collaboration and transparent communication, which creates a welcoming and dynamic work environment. M prioritizes the well-being of its employees by fostering meaningful relationships and providing opportunities for personal growth. This culture of support and respect enables employees to deliver better service and experiences to customers.
Macy's is also committed to investing in the knowledge, skills and career growth of its employees. The company offers many opportunities for real-time reskilling, upskilling and leadership development at every stage of an employee's career. Macy's internal and external expertise supports employee development, helping colleagues grow into future leaders within the company.
Macy's Comprehensive Rewards & Financial Support
M's rewards strategy is designed to recognize individual and team performances while prioritizing employee well-being through comprehensive benefits programs. Macy's offers competitive pay, generous employee discounts at Macy's and Bloomingdale's, and a variety of financial benefits.
Key financial benefits include earned wage access before scheduled paydays, financial literacy resources and access to the North Star Relief Fund, which provides rapid financial assistance to employees facing personal hardships or natural disasters. The company's pay ranges are transparently available for all job postings nationwide, giving employees a clear understanding of its earning potential.
Wrapping Up
Macy's observed a significant challenge in the form of consumer spending reallocation toward non-discretionary items. The shifting consumer spending patterns underscore the need for the company to adapt its product offerings to meet evolving consumer preferences. Comparable sales fell 4% on an owned basis and 3.3% on an owned-plus-licensed-plus-marketplace basis in the second-quarter fiscal 2024 from the prior-year quarter.
Shares of this Zacks Rank #4 (Sell) company have lost 26.3% in the past six months compared with the industry's 25.6% decline.
Nonetheless, Macy's is dedicated to providing a supportive work environment that prioritizes employee growth and recognizes the importance of well-being, ensuring colleagues are able to delight customers throughout the busy holiday season.
Stocks to Consider
Some better-ranked stocks are Abercrombie & Fitch Co. and Steven Madden, Ltd..
You can see the complete list of today's Zacks #1 Rank stocks here.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. It flaunts a Zacks Rank of 1 at present. ANF delivered a 16.8% earnings surprise in the last reported quarter.
The consensus estimate for Abercrombie's fiscal 2025 earnings and sales indicates growth of 63.4% and 13.1%, respectively, from the fiscal 2024 levels. ANF has a trailing four-quarter average earnings surprise of 28%.
Steven Madden designs, sources, markets, and sells fashion-forward name-brand and private-label footwear. It currently has a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Steven Madden's 2024 earnings and sales indicates growth of 6.9% and 12.6%, respectively, from the year-ago actuals. SHOO has a trailing four-quarter average earnings surprise of 9.5%.
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.