HF Sinclair and Dominos Pizza have been highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – October 28, 2022 – Zacks Equity Research shares HF Sinclair DINO as the Bull of the Day and Domino’s Pizza DPZ  as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Caesars Entertainment, Inc. CZR, RCI Hospitality Holdings, Inc. RICK and Cedar Fair, L.P. FUN.

Here is a synopsis of all five stocks:

Bull of the Day:

The Zacks Alternative Energy Industry has been relatively strong in 2022, climbing more than 9% in value and widely outperforming the S&P 500.

A company residing in the industry, HF Sinclair, has seen its earnings outlook turn visibly bright over the last several months, pushing it into the highly-coveted Zacks Rank #1 (Strong Buy).

HF Sinclair, an energy company, produces and markets light products such as gasoline, diesel fuel, jet fuel, renewable diesel, and other specialty products.

Based in Dallas, the company operates and owns refineries across several states, including Kansas, Oklahoma, New Mexico, Wyoming, and Utah.

Let’s take a deeper dive into how the company currently stacks up.

Strong Share Performance

HF Sinclair shares have been notably strong year-to-date, climbing over 90% in value and crushing the S&P 500’s performance.

Energy has undoubtedly been one of the best places to hide out in 2022, and DINO’s share performance clearly reinforces that.

Cheap Shares

DINO’s valuation multiples could entice value-focused investors, further displayed by its Style Score of an A for Value.

The company’s forward price-to-sales ratio sits at 0.4X, precisely at its five-year median and reflecting an 81% discount relative to its industry average of 1.7X.

Further, the company’s P/B ratio sits at 1.3X, nicely below its industry average.

Dividends

Who doesn’t like getting paid?

DINO’s annual dividend yield comes in at a solid 2.7%, paired with a sustainable payout ratio sitting at 21% of its earnings.

Further, the company’s payout has grown by 4.4% over the last five years.

Bottom Line

One of the best ways investors can find expected winners is by utilizing the Zacks Rank – one of the most potent market tools out there that gives investors a massive advantage.

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.

HF Sinclair would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).

Bear of the Day:

It’s been a challenging year to be an investor. A hawkish Fed, geopolitical issues, and lingering COVID-19 uncertainties have been a thorn in the side of stocks all year long.

Needless to say, there have been few places to hide out.

Domino’s Pizza shares have been no exception to the market’s woes, down more than 40% and widely underperforming the general market.

Domino’s Pizza is a top player in the Quick-Service Restaurant or QSR Pizza category. Through its subsidiaries, the company operates as a pizza delivery company in the United States and internationally.

Analysts have pulled back their earnings estimates across the board over the last several months, pushing the stock into a Zacks Rank #5 (Strong Sell).

Quarterly Performance

Domino’s Pizza has struggled to exceed quarterly estimates, falling short of earnings and revenue expectations in four consecutive quarters.

In its latest print, the company fell short of earnings expectations by roughly 5.4% and revenue forecasts by a marginal 0.02%. Below is a chart illustrating the company’s revenue on a quarterly basis.

For the company’s upcoming quarterly print, the Zacks Consensus EPS Estimate of $3.99 suggests a Y/Y earnings decline of 6%.

Growth Estimates

DPZ’s earnings are forecasted to take a hit in its current fiscal year (FY22), with the Zacks Consensus EPS Estimate of $12.15 indicating a Y/Y earnings decline of more than 10%.

Still, things kick back into the green in FY23, with estimates calling for 18% Y/Y earnings growth.

Bottom Line

Disheartening quarterly results and negative earnings estimate revisions have landed DPZ shares in a challenging spot for the short term.

Domino’s Pizza is a Zacks Rank #5 (Strong Sell), telling us it has a weak near-term earnings outlook.

Investors should pivot to stocks that either carry a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 (Buy) – these stocks have a much stronger earnings outlook and potential to deliver explosive gains in the short term.

Additional content:

What to Expect from Caesar's (CZR) Q3 Earnings Next Week

Caesars Entertainment, Inc. is scheduled to report third-quarter 2022 results on Nov 1, 2022, after the closing bell. In the previous quarter, the company reported a negative earnings surprise of 36%.

The Trend in Estimate Revision

The Zacks Consensus Estimate for third-quarter earnings is pegged at 15 cents per share, indicating an improvement of 113.9% from a loss of $1.08 reported in the year-ago quarter.

For revenues, the consensus mark is pegged at approximately $2,832 million, suggesting an increase of 5.5% from the year-ago quarter's reported figure.

Let's look at how things have shaped up in the quarter.

Factors to Note

Caesars Entertainment's third-quarter performance is likely to have benefited from solid Las Vegas performance, backed by improvements in occupancy levels and higher gaming and food and beverage volumes. During the previous quarter's earnings call, the company revealed that occupancy in Las Vegas reached 97%. Also, it reported a solid group revenue pace backed by pent-up demand (for group travel) and strong booking trends.

With international consumers returning and conventional demand accelerating, the momentum is likely to have continued in the third quarter. The Zacks Consensus Estimate for third-quarter Las Vegas revenues is pegged at $1,051 million, indicating growth of 3.3% from the prior-year quarter's levels.

Emphasis on digital business, sports betting expansion and property developments is likely to have driven the third-quarter top line. This and the focus on product enhancements such as cash-out speed, customer service, parlay and alternative line offerings are likely to have aided the company's performance in the to-be-reported quarter. The Zacks Consensus Estimate for revenues from Caesars Digital is pegged at $191 million, indicating growth of 99% from $96 million reported in the prior-year quarter.

However, Increased investments in digital business (concerning product enhancements), competitive pricing strategies and lower hold in certain markets are likely to have impacted the company's performance in the third quarter.

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Caesars Entertainment this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Earnings ESP:Caesars Entertainment has an Earnings ESP of +28.09%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank:The company has a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

Other Stocks Poised to Beat on Earnings

Here are some other stocks from the Zacks Consumer Discretionary sector that investors may consider, as our model shows that these have the right combination of elements to post an earnings beat.

RCI Hospitality Holdings, Inc.has an Earnings ESP of +4.15% and a Zacks Rank #1.

Shares of RCI Hospitality have increased 21.1% in the past year. RICK's earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 39.4%.

Cedar Fair, L.P.has an Earnings ESP of +2.38% and a Zacks Rank #3.

Shares of Cedar Fair have declined 14.1% in the past year. FUN's earnings surpassed the consensus mark thrice in the trailing four quarters and missed once, the average surprise being 5.3%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Domino's Pizza Inc (DPZ) : Free Stock Analysis Report
 
Cedar Fair, L.P. (FUN) : Free Stock Analysis Report
 
Caesars Entertainment, Inc. (CZR) : Free Stock Analysis Report
 
RCI Hospitality Holdings, Inc. (RICK) : Free Stock Analysis Report
 
HF Sinclair Corporation (DINO) : Free Stock Analysis Report
 
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