Day: August 16, 2021

SE – Why Sea Limited Stock Pulled Back Today

What happened

Shares of Sea Limited (NYSE:SE) dropped today in advance of the tech company‘s second-quarter earnings report tomorrow morning. While the only company-specific news out on Sea, which operates as a mobile gaming, e-commerce, and digital payments platform, was positive, investors still took the opportunity to take profits afraid that a downbeat report could weigh on the stock.

The stock closed the day down 5.3%.

The reception desk at the Sea office.

Image source: Sea.

So what

The sell-off in Sea Limted came in spite of an upgrade from Cowen and news that investment firm Tiger Global had added to its stake in the company.

Cowen raised its price tag from $280 to $345 and kept an outperform rating on the Singapore-based growth stock, with analyst John Blackledge touting the growth of the Shopee e-commerce platform in Latin America. Meanwhile, Tiger Global added more than 600,000 shares to its Sea Limited holdings, showing further confidence in the stock at a time when the price has been elevated.

Despite those endorsements, Sea Limited shares still fell. Investors may be fearing a weaker-than-expected performance when the company reports earnings tomorrow morning, especially as it laps a surge during the pandemic a year ago when revenue jumped 147% to $1.8 billion.

Now what

A number of e-commerce stocks like Amazon and Etsy have turned in weaker-than-expected results in the second quarter, giving investors a dose of reality as the tailwinds from the pandemic fade and they face difficult comparisons with the year-ago quarter. Sea Limited seems to be in a similar situation given the way its businesses benefited from the pandemic.  

Analysts are expecting 50% revenue growth to $1.93 billion and for its per-share loss to narrow from $0.68 to $0.52. Sea stock has more than doubled over the past year and trades at a steep valuation, so it’s understandable why investors would want to take profits.

 

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WM – WM Announces Cash Dividend

HOUSTON–()–Waste Management, Inc. (NYSE: WM) today announced the declaration of a quarterly cash dividend of $0.575 per share payable Sept. 17, 2021 to stockholders of record on Sept. 3, 2021.

ABOUT WASTE MANAGEMENT

Waste Management, based in Houston, Texas, is the leading provider of comprehensive waste management environmental services in North America, providing services throughout the United States and Canada. Through its subsidiaries, the Company provides collection, transfer, disposal services, and recycling and resource recovery. It is also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. The Company’s customers include residential, commercial, industrial, and municipal customers throughout North America. To learn more information about Waste Management, visit www.wm.com.

ETON – Eton Pharmaceuticals, Inc. (ETON) Reports Q2 Loss, Misses Revenue Estimates

Eton Pharmaceuticals, Inc. (ETON Free Report) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.14. This compares to loss of $0.23 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 42.86%. A quarter ago, it was expected that this company would post earnings of $0.19 per share when it actually produced earnings of $0.19, delivering no surprise.

Over the last four quarters, the company has surpassed consensus EPS estimates just once.

Eton Pharmaceuticals, Inc.Which belongs to the Zacks Medical – Biomedical and Genetics industry, posted revenues of $3.07 million for the quarter ended June 2021, missing the Zacks Consensus Estimate by 19.92%. This compares to year-ago revenues of $0.02 million. The company has not been able to beat consensus revenue estimates over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Eton Pharmaceuticals, Inc. Shares have lost about 45.6% since the beginning of the year versus the S&P 500’s gain of 19%.

What’s Next for Eton Pharmaceuticals, Inc.

While Eton Pharmaceuticals, Inc. Has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Eton Pharmaceuticals, Inc. Was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.03 on $10.51 million in revenues for the coming quarter and $0.23 on $38.25 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical – Biomedical and Genetics is currently in the bottom 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

KR – Kroger (KR) Outpaces Stock Market Gains: What You Should Know

Kroger (KR Free Report) closed at $43.45 in the latest trading session, marking a +1.49% move from the prior day. This change outpaced the S&P 500’s 0.26% gain on the day.

Heading into today, shares of the supermarket chain had gained 8.77% over the past month, outpacing the Retail-Wholesale sector’s loss of 3.65% and the S&P 500’s gain of 2.37% in that time.

Investors will be hoping for strength from KR as it approaches its next earnings release. The company is expected to report EPS of $0.65, down 10.96% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $30.41 billion, down 0.25% from the year-ago period.

KR’s full-year Zacks Consensus Estimates are calling for earnings of $3.08 per share and revenue of $132.24 billion. These results would represent year-over-year changes of -11.24% and -0.2%, respectively.

It is also important to note the recent changes to analyst estimates for KR. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. KR is currently a Zacks Rank #3 (Hold).

In terms of valuation, KR is currently trading at a Forward P/E ratio of 13.9. This represents a discount compared to its industry’s average Forward P/E of 14.31.

Meanwhile, KR’s PEG ratio is currently 1.64. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. The Retail – Supermarkets industry currently had an average PEG ratio of 1.32 as of yesterday’s close.

The Retail – Supermarkets industry is part of the Retail-Wholesale sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

PANW – Palo Alto Networks (PANW) Stock Sinks As Market Gains: What You Should Know

In the latest trading session, Palo Alto Networks (PANW Free Report) closed at $370.32, marking a -0.99% move from the previous day. This change lagged the S&P 500’s 0.26% gain on the day.

Prior to today’s trading, shares of the security software maker had lost 3.67% over the past month. This has lagged the Computer and Technology sector’s gain of 2.31% and the S&P 500’s gain of 2.37% in that time.

Investors will be hoping for strength from PANW as it approaches its next earnings release, which is expected to be August 23, 2021. On that day, PANW is projected to report earnings of $1.44 per share, which would represent a year-over-year decline of 2.7%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.17 billion, up 23.44% from the year-ago period.

It is also important to note the recent changes to analyst estimates for PANW. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. PANW is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note PANW’s current valuation metrics, including its Forward P/E ratio of 52.83. This valuation marks a no noticeable deviation compared to its industry’s average Forward P/E of 52.83.

It is also worth noting that PANW currently has a PEG ratio of 2.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. PANW’s industry had an average PEG ratio of 2.97 as of yesterday’s close.

The Security industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 110, which puts it in the top 44% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

ZS – Zscaler (ZS) Stock Sinks As Market Gains: What You Should Know

Zscaler (ZS Free Report) closed at $243.43 in the latest trading session, marking a -0.7% move from the prior day. This move lagged the S&P 500’s daily gain of 0.26%.

Heading into today, shares of the cloud-based information security provider had gained 10.85% over the past month, outpacing the Computer and Technology sector’s gain of 2.31% and the S&P 500’s gain of 2.37% in that time.

ZS will be looking to display strength as it nears its next earnings release, which is expected to be September 9, 2021. In that report, analysts expect ZS to post earnings of $0.09 per share. This would mark year-over-year growth of 80%. Meanwhile, our latest consensus estimate is calling for revenue of $187.84 million, up 49.21% from the prior-year quarter.

Any recent changes to analyst estimates for ZS should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. ZS is currently a Zacks Rank #3 (Hold).

Looking at its valuation, ZS is holding a Forward P/E ratio of 439.51. This represents a premium compared to its industry’s average Forward P/E of 27.04.

It is also worth noting that ZS currently has a PEG ratio of 8.68. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Internet – Services stocks are, on average, holding a PEG ratio of 3.29 based on yesterday’s closing prices.

The Internet – Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 35% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

VEEV – Veeva Systems (VEEV) Stock Sinks As Market Gains: What You Should Know

Veeva Systems (VEEV Free Report) closed the most recent trading day at $319.22, moving -0.8% from the previous trading session. This change lagged the S&P 500’s daily gain of 0.26%.

Prior to today’s trading, shares of the provider of cloud-based software services for the life sciences industry had gained 2.03% over the past month. This has lagged the Computer and Technology sector’s gain of 2.31% and the S&P 500’s gain of 2.37% in that time.

Wall Street will be looking for positivity from VEEV as it approaches its next earnings report date. This is expected to be September 1, 2021. The company is expected to report EPS of $0.86, up 19.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $451.28 million, up 27.6% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $3.49 per share and revenue of $1.82 billion, which would represent changes of +18.71% and +24.39%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for VEEV. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.31% lower. VEEV is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, VEEV is currently trading at a Forward P/E ratio of 92.18. For comparison, its industry has an average Forward P/E of 63.11, which means VEEV is trading at a premium to the group.

It is also worth noting that VEEV currently has a PEG ratio of 5.82. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Internet – Software stocks are, on average, holding a PEG ratio of 3.73 based on yesterday’s closing prices.

The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 18% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

TOL – Toll Brothers (TOL) Outpaces Stock Market Gains: What You Should Know

Toll Brothers (TOL Free Report) closed the most recent trading day at $61.39, moving +0.54% from the previous trading session. The stock outpaced the S&P 500’s daily gain of 0.26%.

Prior to today’s trading, shares of the home builder had gained 14.52% over the past month. This has outpaced the Construction sector’s gain of 6.64% and the S&P 500’s gain of 2.37% in that time.

Wall Street will be looking for positivity from TOL as it approaches its next earnings report date. This is expected to be August 24, 2021. The company is expected to report EPS of $1.52, up 68.89% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.22 billion, up 34.23% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $5.61 per share and revenue of $8.72 billion, which would represent changes of +65% and +23.18%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for TOL. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. TOL is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, TOL is currently trading at a Forward P/E ratio of 10.88. For comparison, its industry has an average Forward P/E of 7.06, which means TOL is trading at a premium to the group.

The Building Products – Home Builders industry is part of the Construction sector. This group has a Zacks Industry Rank of 60, putting it in the top 24% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

REVG – REV Group (REVG) Stock Sinks As Market Gains: What You Should Know

REV Group (REVG Free Report) closed at $15.74 in the latest trading session, marking a -0.76% move from the prior day. This change lagged the S&P 500’s 0.26% gain on the day.

Coming into today, shares of the company had gained 5.52% in the past month. In that same time, the Transportation sector gained 0.42%, while the S&P 500 gained 2.37%.

Wall Street will be looking for positivity from REVG as it approaches its next earnings report date. In that report, analysts expect REVG to post earnings of $0.33 per share. This would mark year-over-year growth of 230%. Our most recent consensus estimate is calling for quarterly revenue of $650.35 million, up 11.71% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.23 per share and revenue of $2.54 billion. These totals would mark changes of +720% and +11.43%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for REVG. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. REVG currently has a Zacks Rank of #3 (Hold).

Looking at its valuation, REVG is holding a Forward P/E ratio of 12.89. Its industry sports an average Forward P/E of 15.91, so we one might conclude that REVG is trading at a discount comparatively.

The Transportation – Services industry is part of the Transportation sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.