For Immediate Release
Chicago, IL – March 1, 2024 – Zacks Equity Research shares SkyWest SKYW as the Bull of the Day and YETI Holdings YETI as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Marathon Digital Holdings, Inc. MARA, Block, Inc. SQ, Nvidia Corporation NVDA and Coinbase Global, Inc. COIN.
Here is a synopsis of all five stocks:
Bull of the Day:
The risk-on feeling in the market is palpable. You can see it everywhere from the small caps to Bitcoin. If you're feeling some FOMO, it's perfectly natural. Itching to pull the trigger on your next idea? While it can seem like everything is going up forever, we all know that's simply not the case. Protect yourself over the long run by investing in stocks with strong earnings trends. These sorts of trends last much longer than a move in the stock's price. Earnings are your best friend when evaluating long-term investments.
One way to uncover these stocks is by leaning on the tried-and-true Zacks Rank. Stocks in the good graces of our Zacks Rank like today's Bull of the Day, SkyWest. SkyWest, Inc., through its subsidiaries, engages in the operation of a regional airline in the United States. It operates through two segment, SkyWest Airlines and SWC; and SkyWest Leasing. The company is also involved in leasing regional jet aircraft and spare engines to third parties; and provision of on-demand charter, airport customer, and ground handling services. As of December 31, 2023, its fleet consisted of 603 aircraft; and provided scheduled passenger and air freight services with approximately 1,850 total daily departures to various destinations in the United States, Canada, and Mexico.
The stock is currently a Zacks Rank #1 (Strong Buy). The reason for the favorable rank is that three analysts have increased their earnings estimates for the current year and next year over the last thirty days. This is a direct response to SkyWest beating earnings estimates by 31 cents or 281%. The bullish move has pushed up our Zacks Consensus Estimate for the current year from $5.02 to $5.58 while next year's number is up from $5.48 to $6.34.
Bear of the Day:
The Peter Lynch philosophy of "Buy what you know" is something I tell people all the time. What it means is, when you want to invest, you should invest in companies that make the products or deliver the services you use every day. From a psychological point, it can help you stay invested and interested in companies.
However, sometimes those companies that you know and love are not rocking and rolling the way they used to. Sometimes, there's an underlying shift in the core business that you may not be aware of. One way to uncover these shifts is by looking at earnings trends. That's something we do every day here at Zacks so you don't have to do any of the heavy lifting.
Today's Bear of the Day is a company that has seen revisions move in the wrong direction. I'm talking about Zacks Rank #5 (Strong Sell) YETI Holdings.YETI Holdings, Inc. designs, retails, and distributes products for the outdoor and recreation market under the YETI brand. It offers coolers and equipment, including hard and soft coolers, cargo, bags, outdoor living, and associated accessories, as well as backpacks, duffel bags, luggage, packing cubes, carryalls, camp chairs, blankets, dog beds, dog bowls, and gear cases under the LoadOut, Panga, Crossroads, Camino, Hondo Base, Trailhead, Lowlands, Boomer, and SideKick Dry brands.
The reason for the unfavorable rank is that earnings estimates have come down all over Wall Street. Over the last thirty days, nine analysts have cut their estimates for the current year while five have followed suit for next year. The bearish move has dropped our Zacks Consensus Estimate form $2.71 to $2.49 for the current year while next year's number is off from $3.08 to $2.79.
The Leisure and Recreation Products industry ranks in the Bottom 21% of our Zacks Industry Rank.
Additional content:
2 Top-Ranked Crypto Stocks to Buy as Bitcoin Rockets Higher
The price of Bitcoin (BTC) surpassed $63,000 on Feb 28 for the first time since November 2021. For a short time, the price of the world's numero uno cryptocurrency touched $64,000 before turning lower. Nonetheless, the flagship cryptocurrency is now tantalizingly close to its record high of $68,982.20.
The price of Bitcoin has soared almost 20% this week alone and is up 40% year to date. Notably, the price of Bitcoin had a prodigious 2023, gaining more than 150%. So, what's behind Bitcoin's noteworthy surge?
The cryptocurrency price moved northward due to the exhilaration among crypto market aficionados that the regulator approved 10 Bitcoin ETFs for the first time last month. This has led to a net inflow of $1.2 billion into Bitcoin ETFs, with BlackRock's iShares Bitcoin Trust particularly witnessing the highest inflow, per Dow Jones Market Data.
Cryptocurrency has now become more accessible to institutional investors due to the launch of ETFs. At the same time, the optimism surrounding the asset classes' upcoming "halving event" is driving the price of Bitcoin higher. This is because the price of Bitcoin traditionally has appreciated in the months after halving. After all, the supply of Bitcoin is lowered during the halving event, leading to an uptick in price. Notably, the supply of Bitcoin has a cap of 21 million.
The price of Bitcoin is also gaining traction partly because of the Federal Reserve's dovish stance. The central bank has kept interest rates unaltered in the latest policy meeting and expects to trim rates later this year. It's worth pointing out that higher interest rates are headwinds for Bitcoin, as it weighs on high-risk assets such as digital coins.
Bitcoin-related equities such as Marathon Digital Holdings, Inc. and Block, Inc. saw their shares gain in recent times, banking on the cryptocurrency's surge.
However, it makes sense for astute investors to place bets on stocks such as Nvidia Corporation and Coinbase Global, Inc. that are well-positioned to capitalize on the price of Bitcoin's latest upsurge. Both the stocks have a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
Semiconductor giant, Nvidia has ventured into the crypto space by designing graphic processing units for mining cryptos such as Bitcoin.
Nvidia has already registered bumper profits and revenues in the fiscal fourth quarter and is currently the third most valuable company in the United States.
Nvidia's earnings per share for the fiscal fourth quarter came in at $4.93, up a whopping 765% from a year ago. Revenues came in at $22.1 billion in the quarter, up a stellar 265% from a year ago. Spending frenzy on artificial intelligence helped Nvidia ignite a record rally.
Nvidia's expected earnings growth rate for the current and next year is 79.2% and 11%, respectively. Its estimated revenue growth rate for the current and next year is 68.1% and 14.9%, respectively. The Zacks Consensus Estimate for Nvidia's current-year earnings has increased 17.5% over the past 60 days (read more: Nvidia (NVDA) a Must-Buy After AI-Fueled Blowout Earnings).
Crypto-trading platform Coinbase trades around 50 different kinds of digital assets, including Bitcoin. Coinbase also notched encouraging quarterly results. Its net income for the fourth quarter came in at $273 million against the year-ago quarter's net loss of $557 million. Revenues increased to $954 million in the quarter from $629 million in the year-ago quarter.
The Zacks Consensus Estimate for Coinbase's current-year earnings has soared 253% over the past 60 days. The company's expected earnings growth rate for the current year is 173%. Its estimated revenue growth rate for the current year is 29.3% (read more: 2 Stocks in Cathie Wood's Portfolio to Watch Now).
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
SkyWest, Inc. (SKYW) : Free Stock Analysis Report
Block, Inc. (SQ) : Free Stock Analysis Report
Marathon Digital Holdings, Inc. (MARA) : Free Stock Analysis Report
YETI Holdings, Inc. (YETI) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
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