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Coinbase Global and Ford Motor have been highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – December 10, 2024 – Zacks Equity Research shares Coinbase Global (COIN - Free Report) as the Bull of the Day and Ford Motor Company (F - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Bigbear.ai (BBAI - Free Report) , Amazon (AMZN - Free Report) and Palantir (PLTR - Free Report) .
Zacks Rank #1 (Strong Buy) stock Coinbase Global is the leading American crypto exchange platform. Coinbase operates the largest exchange in the US by volume and offers consumers access to the broadest selection of crypto assets in its marketplace. Their product offerings primarily include trading products that generate transaction revenues and a variety of ecosystem products, many of which generate subscription and service revenues. Below are three significant bullish catalysts for the crypto leader:
1. Trump Taps Pro Crypto Cabinet Nominees
This November, President-elect Donald Trump won his second trip to Pennsylvania Avenue with several of the same policies that won him his 2016 bid, including promises to lower taxes, stop foreign wars, and a crackdown on illegal immigration (amongst other things). However, Trump’s latest platform has changed dramatically from one aspect – crypto. Once a crypto skeptic, Donald Trump reportedly owns nearly $8 million worth of crypto, is releasing NFTS, and is appointing pro crypto nominees for critical cabinet positions.
During the heat of the presidential election campaign, Trump promised a Bitcoin conference audience that he would fire the current Securities and Exchange Commission (SEC) chair, Gary Gensler, on day one. Unsurprisingly, Gensler promised to step down as SEC chairman in January rather than being fired. Gensler, who was seen by the industry as anti-crypto, will be replaced by Paul Atkins, a businessman and crypto lobbyist. Meanwhile, Trump is not stopping at the SEC chair.
Last week, Trump announced he would appoint David Sacks, a successful VC and member of the so-called “PayPal Mafia,” as his AI and crypto czar. Sacks, co-host of the wildly popular “All In” podcast, is seen as pro-business and crypto and has even welcomed Coinbase CEO Brian Armstrong onto the podcast previously. Finally, the incoming administration will tap Armstrong himself for a crypto advisory role. All in all, the crypto regulation environment will flip 180 degrees from anti-crypto to pro-crypto under the new Trump administration.
2. Crypto ETFs: Solana and XRP Next?
Earlier this year, the iShares Bitcoin ETFand the Fidelity Wise Origin BTC ETF launches were the two most successful ETF launches of all-time, accumulating more than $3 billion in inflows in their first month of trading.
Coinbase, the custodial exchange for most crypto ETFs, benefits dramatically by collecting a fee on the total assets under custody and earning transaction fees. With a more favorable regulatory environment on the horizon, ETF operators have put in applications for ETFs in “altcoins” such as Solana and Ripple. Should these ETFs be approved (which they likely will be under the new regime), Coinbase will benefit handsomely.
3. A Flock to the Bitcoin Standard
Since software company MicroStrategy began aggressively adding Bitcoin to its balance sheet, the stock has outperformed every asset class.
After witnessing MSTR’s success with “The Bitcoin Standard,” other companies are following a similar strategy and adding Bitcoin to their balance sheets. The massive crypto demand from public companies will mean more transaction fees for Coinbase.
Coinbase Fundamentals
Fundamentally, COIN boasts the rare and sought-after combination of high growth and a massive cash hoard. Last quarter, EPS jumped 245% year-over-year, and the company’s cash stack has grown steadily since its IPO in 2021.
Coinbase Technical View
Chart-wise, COIN shares are carving out a classic IPO base structure over the long-term. Should the fundamentals continue to improve as we anticipate, the stock should break out in 2025.
Bottom Line
Coinbase, the leading US crypto exchange, is poised to benefit dramatically from a pro-crypto Trump administration, potential new altcoin ETFs, and increased corporate adoption of Bitcoin. COIN is set for long-term growth with its strong fundamentals, growing revenue streams, and favorable regulatory outlook.
Zacks Rank #5 (Strong Sell) stock Ford Motor Company, established by Henry Ford in 1903, is an American automotive manufacturer headquartered in Dearborn, Michigan. Being one of the world’s leading automakers, Ford provides a vast product portfolio of cars, trucks, SUVs, and commercial vehicles, including its luxury Lincoln brand and electric vehicles (EVs).
Ford Earnings Miss Amid EV Weakness, Competition
Checkered EPS Surprise History
Ford’s recent earnings history has been checkered, with some quarters beating, and some missing badly. Presently, the July quarter is in control. F shares stumbled more than 18% on volume turnover nearly four times the norm, after the automaker missed Zacks Consensus estimates by a wide margin of 26.56%. Conversely, fellow legacy automaker GMhas beaten Wall Street’s earnings estimates.
EV Market Slows, Competition is Fierce
An integral reason Ford missed earnings estimates is weakness in its EV segment. Ford has been forced to scale down its EV production amid slowing EV demand. Meanwhile, though EV demand will likely pick up eventually, Tesladominates the market by a significant margin. Further, many customers who want to avoid diving dive straight into an EV are opting for hybrids from Toyota Motors, leaving Ford out in the cold.
Ford’s relative weakness is illustrated not only in its faltering fundamentals but also in its share price. Tesla and GM are up 62.6% and 57% over the past year, respectively, while Ford lags far behind, down 4.2%.
Ford Faces Quality Issues
Ford’s struggle to manage warranty expenses has been another sore spot for the automaker. Quality issues in several models from 2016-2021 have led to an $800 million increase in warranty costs. Though management intends to address these issues, they have communicated to shareholders that the problems may not be resolved for more than a year, at the very least. In other words, the warranty issues will cause a bearish overhang in the stock for the foreseeable future.
Bottom Line
Despite its storied history, Ford Motor faces significant headwinds, including missed earnings, slowing EV demand, and increased competition from Tesla and other automakers. Additionally, persistent quality issues will likely weigh on the stock over the coming months.
Additional content:
Should You Buy Bigbear.ai Up +97% YTD?
Bigbear.ai‘s shares have soared 96.7% in the year-to-date period compared with the Zacks Computer & Technology sector’s return of 33% and the Zacks Computers - IT Services industry’s rise of 19.3%.
The uptick can be attributed to BBAI’s expanding product portfolio and strong network of partners, which continue to drive its growth.
The positive momentum is further supported by BigBear.ai’s ability to capitalize on the growing government investment in AI solutions. The increasing government interest bolsters BigBear’s innovation pipeline and allows it to adapt and extend its capabilities to serve a larger market.
Expanding Portfolio Boosts BBAI’s Prospects
BigBear.ai’s expanding portfolio has been a major growth driver for its success, demonstrated by its initiatives across multiple sectors. The company has been consistently enhancing its portfolio organically and inorganically. Earlier in 2024, it enhanced its AI portfolio by acquiring Pangiam Intermediate Holdings, which offers Vision AI for the trade, travel and digital identity market.
In August, BigBear.ai secured a subcontract with Concept Solutions for a $2.4 billion Federal Aviation Administration Information Technology Innovative Procurement Strategic Sourcing contract to enhance IT services, solidifying its role in the government sector.
BigBear.ai also announced a master service agreement with Heathrow to develop advanced AI technologies to enhance security, operational efficiency and traveler experience at Europe’s largest airport. This agreement highlights BigBear.ai’s commitment to applying advanced solutions to critical infrastructure.
In October, BBAI successfully installed its veriScan biometric verification solution at Denver International Airport, deploying it across 14 international departure gates. The installation enhances boarding efficiency for over 46,600 international passengers monthly, leveraging U.S. Customs and Border Protection’s Traveler Verification Service for secure and privacy-conscious identity verification.
Expanding its portfolio beyond the aviation industry, BigBear.ai participated in the U.S. Navy’s Mission Autonomy Proving Ground exercises. During these exercises, the company showcased its ConductorOS platform, which enables AI-driven maritime domain awareness and ensures multi-vendor interoperability. This further emphasized the company's leadership in defense and maritime advancements.
Expanding Clientele to Aid BBAI’s Top Line
BigBear.ai’s focus on expanding its product portfolio has helped it win clients. Its products have been integrated into the solutions ofAmazon and Palantir, among others.
AMZN’s cloud platform, Amazon Web Services (“AWS”), integrated BBAI’s ProModel solution to build AWS ProServe, enabling it to provide AI-driven warehousing.
Palantir integrated BBAI’s Observe, Orient and Dominate products into its Foundry platform to simplify data collection, generate insights and deliver intelligence.
Amazon and Palantir are the undisputed leaders of the industry. The adoption of BBAI’s products by these giants reflects the quality assurance of its product suite.
In October, BBAI announced a $165.15 million, five-year sole-source prime contract from the U.S. Army to complete the Global Force Information Management Production Services, transitioning legacy systems into a data-centric, intelligent automation platform to enhance force structure decision-making and operational readiness.
BBAI’s 2024 Outlook Looks Dull
BigBear.ai is emerging as a leader in the AI space, and major companies are adopting its products. However, challenging macroeconomic conditions and losses from the Virgin Orbit bankruptcy are expected to impact the company’s top line.
For fiscal 2024, BBAI expects total revenues between $165 million and $180 million.
The Zacks Consensus Estimate for revenues is pegged at $168.57 million, indicating year-over-year growth of 8.64%.
The consensus mark for fiscal 2024 earnings is pegged at a loss of 75 cents per share, unchanged in the past 30 days.
BBAI stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
However, BBAI’s strong portfolio and expanding partner base continuously contribute to its growth prospects, driving top-line growth. This justifies BBAI’s premium valuation.
BBAI shares are also trading above the 50-day and 200-day moving averages, indicating a bullish trend.
BBAI stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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Coinbase Global and Ford Motor have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – December 10, 2024 – Zacks Equity Research shares Coinbase Global (COIN - Free Report) as the Bull of the Day and Ford Motor Company (F - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Bigbear.ai (BBAI - Free Report) , Amazon (AMZN - Free Report) and Palantir (PLTR - Free Report) .
Here is a synopsis of all five stocks.
Bull of the Day:
Zacks Rank #1 (Strong Buy) stock Coinbase Global is the leading American crypto exchange platform. Coinbase operates the largest exchange in the US by volume and offers consumers access to the broadest selection of crypto assets in its marketplace. Their product offerings primarily include trading products that generate transaction revenues and a variety of ecosystem products, many of which generate subscription and service revenues. Below are three significant bullish catalysts for the crypto leader:
1. Trump Taps Pro Crypto Cabinet Nominees
This November, President-elect Donald Trump won his second trip to Pennsylvania Avenue with several of the same policies that won him his 2016 bid, including promises to lower taxes, stop foreign wars, and a crackdown on illegal immigration (amongst other things). However, Trump’s latest platform has changed dramatically from one aspect – crypto. Once a crypto skeptic, Donald Trump reportedly owns nearly $8 million worth of crypto, is releasing NFTS, and is appointing pro crypto nominees for critical cabinet positions.
During the heat of the presidential election campaign, Trump promised a Bitcoin conference audience that he would fire the current Securities and Exchange Commission (SEC) chair, Gary Gensler, on day one. Unsurprisingly, Gensler promised to step down as SEC chairman in January rather than being fired. Gensler, who was seen by the industry as anti-crypto, will be replaced by Paul Atkins, a businessman and crypto lobbyist. Meanwhile, Trump is not stopping at the SEC chair.
Last week, Trump announced he would appoint David Sacks, a successful VC and member of the so-called “PayPal Mafia,” as his AI and crypto czar. Sacks, co-host of the wildly popular “All In” podcast, is seen as pro-business and crypto and has even welcomed Coinbase CEO Brian Armstrong onto the podcast previously. Finally, the incoming administration will tap Armstrong himself for a crypto advisory role. All in all, the crypto regulation environment will flip 180 degrees from anti-crypto to pro-crypto under the new Trump administration.
2. Crypto ETFs: Solana and XRP Next?
Earlier this year, the iShares Bitcoin ETFand the Fidelity Wise Origin BTC ETF launches were the two most successful ETF launches of all-time, accumulating more than $3 billion in inflows in their first month of trading.
Coinbase, the custodial exchange for most crypto ETFs, benefits dramatically by collecting a fee on the total assets under custody and earning transaction fees. With a more favorable regulatory environment on the horizon, ETF operators have put in applications for ETFs in “altcoins” such as Solana and Ripple. Should these ETFs be approved (which they likely will be under the new regime), Coinbase will benefit handsomely.
3. A Flock to the Bitcoin Standard
Since software company MicroStrategy began aggressively adding Bitcoin to its balance sheet, the stock has outperformed every asset class.
After witnessing MSTR’s success with “The Bitcoin Standard,” other companies are following a similar strategy and adding Bitcoin to their balance sheets. The massive crypto demand from public companies will mean more transaction fees for Coinbase.
Coinbase Fundamentals
Fundamentally, COIN boasts the rare and sought-after combination of high growth and a massive cash hoard. Last quarter, EPS jumped 245% year-over-year, and the company’s cash stack has grown steadily since its IPO in 2021.
Coinbase Technical View
Chart-wise, COIN shares are carving out a classic IPO base structure over the long-term. Should the fundamentals continue to improve as we anticipate, the stock should break out in 2025.
Bottom Line
Coinbase, the leading US crypto exchange, is poised to benefit dramatically from a pro-crypto Trump administration, potential new altcoin ETFs, and increased corporate adoption of Bitcoin. COIN is set for long-term growth with its strong fundamentals, growing revenue streams, and favorable regulatory outlook.
Bear of the Day:
Zacks Rank #5 (Strong Sell) stock Ford Motor Company, established by Henry Ford in 1903, is an American automotive manufacturer headquartered in Dearborn, Michigan. Being one of the world’s leading automakers, Ford provides a vast product portfolio of cars, trucks, SUVs, and commercial vehicles, including its luxury Lincoln brand and electric vehicles (EVs).
Ford Earnings Miss Amid EV Weakness, Competition
Checkered EPS Surprise History
Ford’s recent earnings history has been checkered, with some quarters beating, and some missing badly. Presently, the July quarter is in control. F shares stumbled more than 18% on volume turnover nearly four times the norm, after the automaker missed Zacks Consensus estimates by a wide margin of 26.56%. Conversely, fellow legacy automaker GMhas beaten Wall Street’s earnings estimates.
EV Market Slows, Competition is Fierce
An integral reason Ford missed earnings estimates is weakness in its EV segment. Ford has been forced to scale down its EV production amid slowing EV demand. Meanwhile, though EV demand will likely pick up eventually, Tesladominates the market by a significant margin. Further, many customers who want to avoid diving dive straight into an EV are opting for hybrids from Toyota Motors, leaving Ford out in the cold.
Ford’s relative weakness is illustrated not only in its faltering fundamentals but also in its share price. Tesla and GM are up 62.6% and 57% over the past year, respectively, while Ford lags far behind, down 4.2%.
Ford Faces Quality Issues
Ford’s struggle to manage warranty expenses has been another sore spot for the automaker. Quality issues in several models from 2016-2021 have led to an $800 million increase in warranty costs. Though management intends to address these issues, they have communicated to shareholders that the problems may not be resolved for more than a year, at the very least. In other words, the warranty issues will cause a bearish overhang in the stock for the foreseeable future.
Bottom Line
Despite its storied history, Ford Motor faces significant headwinds, including missed earnings, slowing EV demand, and increased competition from Tesla and other automakers. Additionally, persistent quality issues will likely weigh on the stock over the coming months.
Additional content:
Should You Buy Bigbear.ai Up +97% YTD?
Bigbear.ai‘s shares have soared 96.7% in the year-to-date period compared with the Zacks Computer & Technology sector’s return of 33% and the Zacks Computers - IT Services industry’s rise of 19.3%.
The uptick can be attributed to BBAI’s expanding product portfolio and strong network of partners, which continue to drive its growth.
The positive momentum is further supported by BigBear.ai’s ability to capitalize on the growing government investment in AI solutions. The increasing government interest bolsters BigBear’s innovation pipeline and allows it to adapt and extend its capabilities to serve a larger market.
Expanding Portfolio Boosts BBAI’s Prospects
BigBear.ai’s expanding portfolio has been a major growth driver for its success, demonstrated by its initiatives across multiple sectors. The company has been consistently enhancing its portfolio organically and inorganically. Earlier in 2024, it enhanced its AI portfolio by acquiring Pangiam Intermediate Holdings, which offers Vision AI for the trade, travel and digital identity market.
In August, BigBear.ai secured a subcontract with Concept Solutions for a $2.4 billion Federal Aviation Administration Information Technology Innovative Procurement Strategic Sourcing contract to enhance IT services, solidifying its role in the government sector.
BigBear.ai also announced a master service agreement with Heathrow to develop advanced AI technologies to enhance security, operational efficiency and traveler experience at Europe’s largest airport. This agreement highlights BigBear.ai’s commitment to applying advanced solutions to critical infrastructure.
In October, BBAI successfully installed its veriScan biometric verification solution at Denver International Airport, deploying it across 14 international departure gates. The installation enhances boarding efficiency for over 46,600 international passengers monthly, leveraging U.S. Customs and Border Protection’s Traveler Verification Service for secure and privacy-conscious identity verification.
Expanding its portfolio beyond the aviation industry, BigBear.ai participated in the U.S. Navy’s Mission Autonomy Proving Ground exercises. During these exercises, the company showcased its ConductorOS platform, which enables AI-driven maritime domain awareness and ensures multi-vendor interoperability. This further emphasized the company's leadership in defense and maritime advancements.
Expanding Clientele to Aid BBAI’s Top Line
BigBear.ai’s focus on expanding its product portfolio has helped it win clients. Its products have been integrated into the solutions ofAmazon and Palantir, among others.
AMZN’s cloud platform, Amazon Web Services (“AWS”), integrated BBAI’s ProModel solution to build AWS ProServe, enabling it to provide AI-driven warehousing.
Palantir integrated BBAI’s Observe, Orient and Dominate products into its Foundry platform to simplify data collection, generate insights and deliver intelligence.
Amazon and Palantir are the undisputed leaders of the industry. The adoption of BBAI’s products by these giants reflects the quality assurance of its product suite.
In October, BBAI announced a $165.15 million, five-year sole-source prime contract from the U.S. Army to complete the Global Force Information Management Production Services, transitioning legacy systems into a data-centric, intelligent automation platform to enhance force structure decision-making and operational readiness.
BBAI’s 2024 Outlook Looks Dull
BigBear.ai is emerging as a leader in the AI space, and major companies are adopting its products. However, challenging macroeconomic conditions and losses from the Virgin Orbit bankruptcy are expected to impact the company’s top line.
For fiscal 2024, BBAI expects total revenues between $165 million and $180 million.
The Zacks Consensus Estimate for revenues is pegged at $168.57 million, indicating year-over-year growth of 8.64%.
The consensus mark for fiscal 2024 earnings is pegged at a loss of 75 cents per share, unchanged in the past 30 days.
BigBear.ai Holdings, Inc. price-consensus-chart | BigBear.ai Holdings, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BBAI Stock – Buy, Sell or Hold?
BBAI stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment.
However, BBAI’s strong portfolio and expanding partner base continuously contribute to its growth prospects, driving top-line growth. This justifies BBAI’s premium valuation.
BBAI shares are also trading above the 50-day and 200-day moving averages, indicating a bullish trend.
BBAI stock currently carries a Zacks Rank #2 (Buy) and has a Growth Score of B, a favorable combination that offers a strong investment opportunity, per the Zacks Proprietary methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.