For immediate publication
Chicago, IL – June 17, 2021 – Zacks Equity Research stocks Dream Finders Homes, Inc. DFH as Bull of the Day, Harmonic Inc. HLIT as Bear of the Day. In addition, Zacks Equity Research provides analysis of Clean Energy Fuels Corp. CLNE, BP plc BP and Chevron Corporation CVX.
Here is a summary of all five stocks:
Bull of the day:
Dream seeker houses is a Zacks rank # 2 (Buy) with a C for Value and B for Growth and is in an area that will benefit from a persistently low interest rate environment. Let’s find out a little more about this stock in the Bull of the Day.
description
Dream Finder Homes Inc. is a residential construction company. It operates primarily in Florida, Texas, North Carolina, South Carolina, Georgia, Colorado, Virginia, and Maryland. Dream Finder Homes Inc. is based in Jacksonville, FL.
Earnings history
The first thing I do when I look at stocks is to see if the company beats the number. That tells me immediately where the market’s expectations of the company were and how management was able to communicate with the market. A stock that consistently beats is one that Wall Street management has announced expectations that can be achieved. This is what you want to see.
There is only one report I see on the Zacks system and it was a meeting. So the earnings story isn’t really a story.
Estimation of the revisions
So I see some good valuation increases for DFH here.
This quarter rose from 30 cents to 36 cents and is now 42 cents.
The next quarter saw an increase from 34 cents to 42 cents.
The whole year has seen a nice move from $ 1.29 to $ 1.53.
Next year increased from $ 1.95 to $ 2.06.
Good movement down the line there.
valuation
What a great rating for a stock that is showing great growth. 15x Forward earnings is very low for a company that posted 82% revenue growth last quarter. 7 times the price of booking is a bit high, but growth will fix that. The analysts are calling for sales growth of 70% this year and 20% next year.
Bear of the day:
Harmonious is a Zacks Rank # 5 (Strong Selling) and has the growth divergence I’m always looking for. That means I see a strong Zacks Growth Style Score and a weak Zacks Value Style Score. Growth investors and value investors are looking for different things, so when I see this I know I’m on the right track. Let’s take a look at that stock in this Bear of the Day article.
description
Harmonic Inc. enables media companies and service providers to deliver world-class broadcast and OTT video services to consumers worldwide. The company has also revolutionized cable access networks with the industry’s first virtualized CCAP solution that enables cable operators to deliver gigabit Internet services more flexibly to consumers’ homes and mobile devices.
Whether it’s simplifying the delivery of OTT video using innovative cloud and software-as-a-service (SaaS) technologies, or supporting the delivery of gigabit internet cable services, Harmonic is changing the way media companies and service providers live and monetize VOD content on any screen.
Earnings history
The first thing I do when I look at stocks is to see if the company beats the number. That tells me immediately where the market’s expectations of the company were and how management was able to communicate with the market. A stock that consistently beats is one that Wall Street management has announced expectations that can be achieved. This is what you want to see.
In the case of HLIT, I see four straight strokes of the Zack Consensus Estimate. This makes the case that it is a Zacks Rank # 5 (Strong Sell) even stranger.
While the Zacks rank takes care of the profit history, it is much more influenced by the development of the profit estimates.
Earnings estimates
The Zacks rank tells us which stocks have earnings estimates going up or, in this case, down. I see fluctuating estimates for HLIT.
This quarter has increased from $ 0.05 to $ 0.00.
The next quarter saw a similar increase from $ 0.06 to $ 0.04.
The Zacks rank is more affected by the movement of the years, and the movement is negative for those numbers.
I see 2021 has moved from $ 0.24 to $ 0.19 in the last 60 days.
The number for 2022 has moved from $ 0.43 to $ 0.42 over the same time horizon.
Such negative movements in earnings estimates are the reason this stock climbed a Zacks # 5 rank (strong sell).
Additional content:
Is it worth it to rely on Meme Stock Clean Energy (CLNE)?
Clean energy fuels has received a lot of attention from retailers lately, with much discussion about subreddit r / wallstreetbets. The stock is up more than 40% over the past month, with trading volume hitting a record high of 157.1 million on June 9, 2021.
In addition to compressed natural gas (“CNG”) and liquefied natural gas (“LNG”), Clean Energy supplies renewable natural gas (“RNG”) for vehicles. The use of RNG in vehicles contributes to a significant reduction in emissions.
The stock was primarily targeted by the Reddit forum as the company recently announced plans to expand renewable fuel solutions for customers and plans to make major investments in developing RNG from dairies as well as other agricultural facilities. She intends to like the RNG development plan both independently and jointly with partners TotalEnergies SE and BP.
The stock has gained momentum over the past month, with many energy giants having faith in the concept of clean energy fuel. Since RNG has tremendous potential as a clean energy source, companies like Chevron Corp., TotalEnergies SE and BP Plc have already signed contracts with Clean Energy to promote and expand the infrastructure for wider use.
However, these developments have already been incorporated into the price of the share. Actions by retailers have also resulted in the stock being overvalued at current price levels. This is particularly evident when looking at the company’s financial performance over the past 12 months.
Our proprietary style scores system has assigned Clean Energy a value score of D, which is conclusive evidence that the stock is overvalued. On a price / revenue basis, the stock is currently trading at 7.82X, compared to the industry average of 2.47X. Also in terms of price / cash flow, Clean Energy comes off badly at 32.35X compared to the industry average of 13.58X. The premium assessment appears unjustified if the company expects negative profits even for 2021.
Clean Energy’s profit outlook for 2021 remains weak. The Zacks Consensus Estimate for the full year 2021 has been revised down 460% over the past 90 days to a loss of 18 cents per share. Therefore, Clean Energy is currently ranked # 4 (Sell) in Zacks. Despite the hype surrounding the stock, it is better now to avoid it.
You can see the full list of current Zacks # 1 Rank (Strong Buy) stocks here.
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BP plc (BP): Free Stock Research Report
Chevron Corporation (CVX): Free Stock Research Report
Harmonic Inc. (HLIT): Free Stock Research Report
Clean Energy Fuels Corp. (CLNE): Free Stock Analysis Report
Dream Finders Homes, Inc. (DFH): Free Stock Analysis Report
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