Cardinal Health and Humana have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Equity Research
CAH as the Bull
of the Day and Humana
HUM as the Bear
of the Day. In addition,
TSM,
AAPL and
NFLX
.
Here is a synopsis of all five
stocks.
Bull of the Day:
and provider of services to pharmacies, healthcare providers, and
manufacturers. Analysts have taken a bullish stance on the
company's earnings outlook, landing it into the highly-favorable
Zacks Rank #1 (Strong Buy).
In addition to favorable earnings
estimate revisions, the company resides within the Zacks Medical -
CAH shares have been notably strong
over the last year, adding +54% and widely outperforming relative
to the S&P 500. Better-than-expected quarterly results have
helped drive the bullish move, with
consensus EPS estimates by an average of 15% across its last four
releases.
Concerning headline figures in its
latest print, CAH posted a 17% beat relative to the Zacks Consensus
EPS estimate and reported sales 1.1% above expectations, reflecting
growth rates of 38% and 11.6%, respectively.
Results have been driven by
increased profitability across both its segments, with the
company's operational execution providing positive tailwinds. CAH
has consistently grown sales over the years.
In addition to earnings momentum,
investors stand to reap a passive income, with CAH shares yielding
1.8% annually. The company is a member of the elite Dividend
Aristocrats group, whose commitment to shareholders is
unmatched.
Shares aren't overly stretched
regarding valuation, underpinned by its Style Score of 'A' for
Value. Shares presently trade at a 14.4X forward 12-month earnings
multiple, above the five-year median but comparing favorably to its
respective
The company's growth profile is
considerably bright for being non-technology, with consensus
estimates for its current year suggesting +25% earnings growth on
+11% higher sales, with FY25 expectations suggesting an additional
+10% of earnings growth paired with a +9% sales bump.
The stock carries a Style Score of
'B' for Growth.
Bottom Line
Investors can implement a stellar
strategy to find expected winners by taking advantage of the Zacks
Rank - one of the most powerful market tools that provides a
massive edge.
The top 5% of all stocks receive
the highly coveted Zacks Rank #1 (Strong Buy). These stocks should
outperform the market more than any other rank.
excellent stock for investors to consider, as displayed by its
Rank
Bear of the Day:
Humana is a health care plan provider in
United States
Analysts have taken a bearish
stance on the company's earnings outlook, landing it into a Zacks
Rank #5 (Strong Sell).
In addition, the company currently
resides in the Zacks Medical - HMOs industry, which is currently
ranked in the bottom 14% of all
closer look at a few other aspects of the company.
Humana
HUM shares have struggled to find
their footing over the last year, losing nearly -29% in value and
widely underperforming relative to the S&P 500. Shares faced
notably strong selling pressure following its latest quarterly
release, with the company falling short of the Zacks Consensus EPS
estimate by 57%.
The results were hampered by an
additional increase in Medicare Advantage medical cost trends,
causing the company to give 'soft' initial guidance for its FY24.
The results snapped a streak of positive EPS surprises, with
investors reacting negatively in response.
The company's profitability is
forecasted to take a sizable hit in its current year (FY24), with
the
-38% from FY23. Shares presently trade at a 20.3X forward 12-month
earnings multiple, above the five-year median and the respective
The stock carries a Style Score of
'D' for Value.
Bottom Line
Negative earnings estimate
revisions from analysts stemming from increased costs paint a
challenging picture for the company's shares in the near term.
Humana is a Zacks Rank #5 (Strong
Sell), indicating that analysts have taken a bearish stance on the
company's earnings outlook.
For those seeking strong stocks, a
great idea would be to focus on stocks carrying a Zacks Rank #1
(Strong Buy) or a Zacks Rank #2 (Buy) - these stocks sport a
notably stronger earnings outlook paired with the potential to
deliver explosive gains in the near term.
Additional content:
2 Leading Tech Stocks to Buy & Hold in March
Today's episode of Full Court
Finance at
to kick off March. The episode then explores why investors should
consider buying these stocks for long-term growth inside two key
tech industries.
to its first record close since late 2021 on Thursday after PCE
data came in line with expectations. The jump to new highs for the
tech-heavy industry is another sign the bulls are in complete
control.
Investors must remain aware that
stocks are likely headed for a healthy pullback at some point soon
to shave off excess fat. But fears about a major bubble and
comparisons to the Dot-Com era don't seem valid.
The companies driving tech today
churn out massive profits and sit on huge piles of cash while
working deeper into every aspect of the economy. The tech sector
trades far below its early 2000s levels of 33.9X forward earnings
at 26.3X.
Keep your eyes out for the next dip
down to the 21-day or 50-day moving averages for the S&P 500
and the Nasdaq--or the 21-week. The bulls might keep buying up all
the sizable downturns as
including corporate earnings growth, projected Fed rate cuts, a
stable economy, and AI-driven growth and productivity gains.
Co
manufacturing. TSMC's foundries physically build the most
cutting-edge semiconductors that drive AI, smartphones, and nearly
every other advanced technology, boasting clients from
Taiwan Semi is reaping the rewards
of its founding principal: manufacturing only. TSMC's moat is
massive considering the institutional know-how and enormous costs
needed to lead the world in making the most complex and microscopic
tech on the planet.
The company topped our Q4 EPS
estimate in January and provided upbeat guidance, "supported by the
continued strong ramp of our industry-leading 3-nanometer
technology." TSMC is projected to grow its sales by 23% in FY24 and
20% in FY25, following a cyclical down year in 2023. TSMC averaged
18% revenue growth between FY18 and FY22. Taiwan Semi's adjusted
earnings are projected to climb by 19% and 24%, respectively.
TSM crushed tech over the last 10
years, climbing 615% vs. 280%. Yet it trades below its all-time
highs. Taiwan Semi trades at a 25% discount to the tech sector at
20.7X forward 12-month earnings and 40% below its 10-year
highs.
The company is expanding beyond
Taiwan Semi pays a dividend and it is poised to grow for decades as
it physically builds the bedrock of all technology, from data
centers to AI and the still to come.
entertainment. NFLX's vanguard status and growing content library
helps it maintain its lead over
other streamers. NFLX shares have roared back over the last year
plus after it addressed fears about slowing expansion against
growing competition, crushing membership estimates in 2023.
The firm posted blowout fourth
quarter results, adding 13.1 million net new paid subscribers to
beat
paid subscribers to crush everyone else in the streaming
industry.
is gaining traction while it cuts down on people sharing too many
accounts. NFLX is also expanding its video game segment and rolling
out more live content. The firm in January announced a 10-year deal
with WWE that will bring Raw and other popular live wrestling shows
to
NFLX's improving earnings outlook
helps it grab a Zacks Rank #1 (Strong Buy) right now.
projected to grow its sales by 15% in FY24 and another 12% next
year to boost its adjusted earnings by 42% and 22%,
respectively.
in the last 10 years, including a 230% run off its 2022 lows.
Still, NFLX trades around 10% below its all-time highs. The
streaming giant trades at a 90% discount to its highs at 34X
forward earnings and 50% below its median.
[Disclosure:
portfolio.]
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