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YEXT and Berry have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – October 2, 2024 – Zacks Equity Research shares YEXT (YEXT - Free Report) as the Bull of the Day and Berry (BRY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet Inc. (GOOGL - Free Report) , Amazon.com Inc. (AMZN - Free Report) and Adobe Inc. (ADBE - Free Report) .
YEXT is a Zacks Rank #1 (Strong Buy) that has a D for Value and a B for Growth. Yext provides digital media technology services. It offers advertising, monetization, phone and directory services which includes business listings on search sites and real-time reputation management. Let’s explore more about this company in this Bull of The Day article.
Description
Yext offers a cloud-based digital knowledge platform, which allows businesses to manage their digital knowledge in the cloud such as financial information, resources and performance of these resources on a consolidated basis and sync it to other application such as Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri, and Yelp. It offers the Yext Knowledge Engine package on a subscription basis, which has an access to Listings, Pages, Reviews and other features.
The Listing feature provides customers with control over their digital presence, including their location and other related attributes published on the used third-party applications. The Pages feature allows customers to establish landing pages on their own websites and to manage digital content on those sites, including calls to action. The Reviews presence enables customers to encourage and facilitate reviews from end consumers. The company was founded by Howard Lerman, Brent Metz, and Brian Distelburger in 2006 and is headquartered in New York, NY..
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.
Yext has a solid earnings history with the company topping the Zacks Consensus in three of the last four quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 48%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for YEXT.
This quarter has decreased from $0.15 to $0.13.
Next quarter has also slid from $0.16 to $0.15.
The full year fiscal 2025 has increased from $0.40 to $0.41 over the last 30 days.
Next year has seen a slight decrease from $0.66 to $0.64 over the last 30 days.
Growth
For fiscal 2025 the company is expected to show 4% growth with $420 million in sales. Next year that number grows to $463 million for a 10.2% increase.
Valuation
The forward earnings multiple for YEXT comes in at 17x which is right around this historic market multiple. It should be noted that the current market multiple is at 23x. The price to book multiple comes in at 5.4x and being a mostly asset slim model that gives this metric plenty of room to run. Price to sales comes in at 2.2x and that number will improve next year as revenue growth accelerates.
Berry is a Zacks Rank #5 (Strong Sell) after the company missed the Zacks Consensus Estimate when the last reported on August 9 of this year. Berry is an independent upstream energy company which focuses on the conventional, long-lived oil reserves principally in the San Joaquin basin of California. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Berry Corp. is an energy exploration company, which engages in the acquisition, exploration, development, and production of domestic oil and natural gas reserves. It operates through the Exploration and Production (E&P) and Well Servicing and Abandonment segments. The E&P segment consists of the development and production of onshore, low geologic risk, long-lived conventional oil and gas reserves, primarily located in California, as well as Utah. The Well Servicing and Abandonment segment is involved in the wellsite services in California to oil and natural gas production companies, with a focus on well servicing, well abandonment services and water logistics. The company was founded by C. J. Berry in 1909 and is headquartered in Dallas, TX.
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 Berry, I see four straight misses of the Zacks Consensus Estimate over the last year. The most recent quarter was the miss with the company posting $0.18 when the consensus was calling for $0.20. 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 BRY I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $0.84 to $0.63 over the last 60 days.
The next year has moved from $0.87 to $0.59 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:
3 Stocks with Extensive AI Applications to Hold Tight for Now
The astonishing rally in U.S. stocks that started at the beginning of 2023 was predominantly driven by the technology sector. An unprecedented adoption of generative artificial intelligence (AI) technology across the world was the prime factor.
Lately, a section of market analysts and financial researchers have raised concerns about the potential profitability of massive investments in generative AI by several technology giants. We believe that AI applications will continue to gather pace in the coming years, buoyed by the rapid penetration of digital technologies and the Internet.
At this stage, investors should keenly watch three technology behemoths with extensive applications of generative AI. These companies are - Alphabet Inc., Amazon.com Inc. and Adobe Inc.
These stocks have double-digit price upside in the short term. In the long term, these stocks have a higher earnings per share (EPS) growth rate than the broad-market S&P 500 index, which should drive their stock prices in the next 3 to 5 years. 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 Tech Giants with Extensive AI Applications in Focus
Focus on these three technology bigwigs for handsome returns in both the short and long terms.
Alphabet Inc.
A deepening focus on generative AI technology is a major positive for GOOGL in this data-driven world. Google has been well-poised to capitalize on the growing proliferation of generative AI-backed chatbots on the back of Bard, which enables users to collaborate with experimental AI with new features that include image capabilities, coding support and app integration.
GOOGL is cashing in on the increasing demand for Large Language Models with its most powerful AI model called Gemini. Google Bard and Search Generative Experience are powered with Gemini Pro in order to deliver enhanced user experience. Google Cloud offers Duet AI, which provides pre-packaged AI agents that assist developers in writing, testing, documenting and operating software.
In addition, GOOGL’s Vertex AI enables developers to train, tune, augment and deploy applications using generative AI models. These generative AI capabilities are aiding Google in enhancing search results, accelerating Android development, boosting healthcare reach and delivering enhanced cloud experience.
Huge Price Upside Potential for GOOGL Stock
Alphabet has an expected revenue and earnings growth rate of 14% and 31.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. Alphabet has a long-term (3-5 year) earnings growth rate of 17.5%.
The average price target of brokerage firms represents an increase of 23.3% from the last closing price of $165.85. The brokerage target price is currently in the range of $170-$225.
Amazon.com Inc.
Amazon is pushing well with its devices strategy. Alexa powered Echo devices are going great guns and help the company sell products and services. Artificial intelligence (AI) driven Alexa has already been integrated into a host of everyday devices for the digital home, which has converted the nascent smart home market into a potential area of growth in a very short time.
Moreover, AMZN is benefiting from an increasing number of Alexa-compatible smart devices. AMZN is racing to build an ecosystem around Alexa and it’s safe to say that it has taken an early lead over Google's smart assistant.
Amazon is the leading provider of cloud infrastructure as a service to enterprise customers. The expanding customer base of Amazon Web Services (AWS) driven by its strengthening cloud offerings, will continue to aid AMZN’s dominance in the global cloud space.
Impressive Price Upside Potential for AMZN Shares
Amazon has an expected revenue and earnings growth rate of 10.4% and 63.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 60 days. Alphabet has a long-term (3-5 year) earnings growth rate of 27.4%.
The average price target of brokerage firms represents an increase of 19.9% from the last closing price of $186.33. The brokerage target price is currently in the range of $200-$265.
Adobe Inc.
Adobe has extensively implemented AI applications across its flagship products, such as Photoshop, Illustrator, Lightroom, and Premiere. Earlier this year, ADBE introduced generative AI-driven Adobe Firefly. Moreover, Adobe Acrobat and Reader AI Assistant help users to summarize documents and answer questions, which can save time and help users accomplish tasks faster.
Using its new AI-driven cloud-based platform, ADBE is also diversifying into digital marketing services, offering data mining services, which help businesses measure page views, purchases and social media sites. Adobe Marketing Cloud enables marketers to deliver personalized web experiences across multiple devices, manage multichannel campaigns and optimize media monetization.
These services help businesses streamline marketing and products for targeted consumer groups, including chief marketing officers, chief revenue officers, advertising agencies, publishing executives and digital marketers.
ADBE has launched Adobe Express, an application for quick editing effects. Leveraging generative AI, this tool is useful for short-form video content like Instagram Reels. Adobe also launched an AI-based Express app for iOS and Android.
Solid Price Upside Potential for ADBE Shares
Adobe has an expected revenue and earnings growth rate of 10.5% and 13.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 30 days. Alphabet has a long-term (3-5 year) earnings growth rate of 13.1%.
The average price target of brokerage firms represents an increase of 19% from the last closing price of $517.78. The brokerage target price is currently in the range of $450-$703.
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/performance for information about the performance numbers displayed in this press release.
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YEXT and Berry have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – October 2, 2024 – Zacks Equity Research shares YEXT (YEXT - Free Report) as the Bull of the Day and Berry (BRY - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Alphabet Inc. (GOOGL - Free Report) , Amazon.com Inc. (AMZN - Free Report) and Adobe Inc. (ADBE - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
YEXT is a Zacks Rank #1 (Strong Buy) that has a D for Value and a B for Growth. Yext provides digital media technology services. It offers advertising, monetization, phone and directory services which includes business listings on search sites and real-time reputation management. Let’s explore more about this company in this Bull of The Day article.
Description
Yext offers a cloud-based digital knowledge platform, which allows businesses to manage their digital knowledge in the cloud such as financial information, resources and performance of these resources on a consolidated basis and sync it to other application such as Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri, and Yelp. It offers the Yext Knowledge Engine package on a subscription basis, which has an access to Listings, Pages, Reviews and other features.
The Listing feature provides customers with control over their digital presence, including their location and other related attributes published on the used third-party applications. The Pages feature allows customers to establish landing pages on their own websites and to manage digital content on those sites, including calls to action. The Reviews presence enables customers to encourage and facilitate reviews from end consumers. The company was founded by Howard Lerman, Brent Metz, and Brian Distelburger in 2006 and is headquartered in New York, NY..
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.
Yext has a solid earnings history with the company topping the Zacks Consensus in three of the last four quarters.
Over the course of the last four quarters the average positive earnings surprise works out to be 48%.
Earnings Estimates Revisions
Earnings estimates revisions is what the Zacks Rank is all about.
Annual Estimates are moving higher for YEXT.
This quarter has decreased from $0.15 to $0.13.
Next quarter has also slid from $0.16 to $0.15.
The full year fiscal 2025 has increased from $0.40 to $0.41 over the last 30 days.
Next year has seen a slight decrease from $0.66 to $0.64 over the last 30 days.
Growth
For fiscal 2025 the company is expected to show 4% growth with $420 million in sales. Next year that number grows to $463 million for a 10.2% increase.
Valuation
The forward earnings multiple for YEXT comes in at 17x which is right around this historic market multiple. It should be noted that the current market multiple is at 23x. The price to book multiple comes in at 5.4x and being a mostly asset slim model that gives this metric plenty of room to run. Price to sales comes in at 2.2x and that number will improve next year as revenue growth accelerates.
Bear of the Day:
Berry is a Zacks Rank #5 (Strong Sell) after the company missed the Zacks Consensus Estimate when the last reported on August 9 of this year. Berry is an independent upstream energy company which focuses on the conventional, long-lived oil reserves principally in the San Joaquin basin of California. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Berry Corp. is an energy exploration company, which engages in the acquisition, exploration, development, and production of domestic oil and natural gas reserves. It operates through the Exploration and Production (E&P) and Well Servicing and Abandonment segments. The E&P segment consists of the development and production of onshore, low geologic risk, long-lived conventional oil and gas reserves, primarily located in California, as well as Utah. The Well Servicing and Abandonment segment is involved in the wellsite services in California to oil and natural gas production companies, with a focus on well servicing, well abandonment services and water logistics. The company was founded by C. J. Berry in 1909 and is headquartered in Dallas, TX.
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 Berry, I see four straight misses of the Zacks Consensus Estimate over the last year. The most recent quarter was the miss with the company posting $0.18 when the consensus was calling for $0.20. 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 BRY I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $0.84 to $0.63 over the last 60 days.
The next year has moved from $0.87 to $0.59 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:
3 Stocks with Extensive AI Applications to Hold Tight for Now
The astonishing rally in U.S. stocks that started at the beginning of 2023 was predominantly driven by the technology sector. An unprecedented adoption of generative artificial intelligence (AI) technology across the world was the prime factor.
Lately, a section of market analysts and financial researchers have raised concerns about the potential profitability of massive investments in generative AI by several technology giants. We believe that AI applications will continue to gather pace in the coming years, buoyed by the rapid penetration of digital technologies and the Internet.
At this stage, investors should keenly watch three technology behemoths with extensive applications of generative AI. These companies are - Alphabet Inc., Amazon.com Inc. and Adobe Inc.
These stocks have double-digit price upside in the short term. In the long term, these stocks have a higher earnings per share (EPS) growth rate than the broad-market S&P 500 index, which should drive their stock prices in the next 3 to 5 years. 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 Tech Giants with Extensive AI Applications in Focus
Focus on these three technology bigwigs for handsome returns in both the short and long terms.
Alphabet Inc.
A deepening focus on generative AI technology is a major positive for GOOGL in this data-driven world. Google has been well-poised to capitalize on the growing proliferation of generative AI-backed chatbots on the back of Bard, which enables users to collaborate with experimental AI with new features that include image capabilities, coding support and app integration.
GOOGL is cashing in on the increasing demand for Large Language Models with its most powerful AI model called Gemini. Google Bard and Search Generative Experience are powered with Gemini Pro in order to deliver enhanced user experience. Google Cloud offers Duet AI, which provides pre-packaged AI agents that assist developers in writing, testing, documenting and operating software.
In addition, GOOGL’s Vertex AI enables developers to train, tune, augment and deploy applications using generative AI models. These generative AI capabilities are aiding Google in enhancing search results, accelerating Android development, boosting healthcare reach and delivering enhanced cloud experience.
Huge Price Upside Potential for GOOGL Stock
Alphabet has an expected revenue and earnings growth rate of 14% and 31.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.1% over the last 60 days. Alphabet has a long-term (3-5 year) earnings growth rate of 17.5%.
The average price target of brokerage firms represents an increase of 23.3% from the last closing price of $165.85. The brokerage target price is currently in the range of $170-$225.
Amazon.com Inc.
Amazon is pushing well with its devices strategy. Alexa powered Echo devices are going great guns and help the company sell products and services. Artificial intelligence (AI) driven Alexa has already been integrated into a host of everyday devices for the digital home, which has converted the nascent smart home market into a potential area of growth in a very short time.
Moreover, AMZN is benefiting from an increasing number of Alexa-compatible smart devices. AMZN is racing to build an ecosystem around Alexa and it’s safe to say that it has taken an early lead over Google's smart assistant.
Amazon is the leading provider of cloud infrastructure as a service to enterprise customers. The expanding customer base of Amazon Web Services (AWS) driven by its strengthening cloud offerings, will continue to aid AMZN’s dominance in the global cloud space.
Impressive Price Upside Potential for AMZN Shares
Amazon has an expected revenue and earnings growth rate of 10.4% and 63.5%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 3% over the last 60 days. Alphabet has a long-term (3-5 year) earnings growth rate of 27.4%.
The average price target of brokerage firms represents an increase of 19.9% from the last closing price of $186.33. The brokerage target price is currently in the range of $200-$265.
Adobe Inc.
Adobe has extensively implemented AI applications across its flagship products, such as Photoshop, Illustrator, Lightroom, and Premiere. Earlier this year, ADBE introduced generative AI-driven Adobe Firefly. Moreover, Adobe Acrobat and Reader AI Assistant help users to summarize documents and answer questions, which can save time and help users accomplish tasks faster.
Using its new AI-driven cloud-based platform, ADBE is also diversifying into digital marketing services, offering data mining services, which help businesses measure page views, purchases and social media sites. Adobe Marketing Cloud enables marketers to deliver personalized web experiences across multiple devices, manage multichannel campaigns and optimize media monetization.
These services help businesses streamline marketing and products for targeted consumer groups, including chief marketing officers, chief revenue officers, advertising agencies, publishing executives and digital marketers.
ADBE has launched Adobe Express, an application for quick editing effects. Leveraging generative AI, this tool is useful for short-form video content like Instagram Reels. Adobe also launched an AI-based Express app for iOS and Android.
Solid Price Upside Potential for ADBE Shares
Adobe has an expected revenue and earnings growth rate of 10.5% and 13.6%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the last 30 days. Alphabet has a long-term (3-5 year) earnings growth rate of 13.1%.
The average price target of brokerage firms represents an increase of 19% from the last closing price of $517.78. The brokerage target price is currently in the range of $450-$703.
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/performance for information about the performance numbers displayed in this press release.