Yahoo Finance Titan Machinery and GIII Apparel have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – December 6, 2022 – Zacks Equity Research shares Titan Machinery TITN as the Bull of the Day and GIII Apparel Group GIII asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Range Resources RRC, EQT Corp. EQT and Comstock Resources CRK.
Here is a synopsis of all five stocks.
Bull of the Day:
The market is starting to butt its head against some resistance here. As sellers enter, there are some stocks that are really taking a punch. How do you know if your stocks are going to ever turn around? Like somebody asked me earlier today, which dip is the one to buy?
One way to gain more confidence is by adding stocks which have strong earnings trends. While stock prices are among the most fickle things on Earth, earnings tend to trend more consistently. Find a stock with a powerful earnings trend and you’ll have a winner in the long-run, regardless of short-term pressures the market should hand you. It’s a great way to sleep at night.
The Zacks Rank uncovers these stocks for you. That’s why I have Titan Machinery as my Bull of the Day. Titan Machinery Inc. owns and operates a network of full-service agricultural and construction equipment stores in the United States and Europe. It operates through three segments: Agriculture, Construction, and International.
The reason for the favorable Zacks Rank is analysts coming out and increasing their earnings estimates for both the current year and next year. Over the last quarter, current year Zacks Consensus Estimate is up from $3.52 to $4.38 while next year’s number is up from $3.79 to $4.35. That is partly due to analysts playing a bit of catchup. Over the last year, the company has beat earnings expectations by an average of 44 cents each quarter. The last time the company missed earnings was November 2019.
Bear of the Day:
When the market ripped higher from the October lows to the 200-day moving average, investors cheered. It had that feeling again where everything was going one way, up. Over the last few trading days, sellers have had the upper hand, and it is making for some ugly downside action in some individual names.
Don’t get caught holding the bag in a stock made of straw. The real winners of the long-term in the stock market are companies with the strongest earnings trends. Those weak hands get shaken out real quick in stocks that are struggling to deliver these earnings.
The Zacks Rank helps warn investors of weakening earnings trends. Stocks like today’s Bear of the Day GIII Apparel Group. G-III Apparel Group, Ltd. designs, sources, and markets women's and men's apparel in the United States and internationally. The company operates through two segments, Wholesale Operations and Retail Operations. Its products include outerwear, dresses, sportswear, swimwear, women's suits, and women's performance wear; and women's handbags, footwear, small leather goods, cold weather accessories, and luggage.
A big earnings miss here caused some bad fallout. Last quarter’s report came in 50-cents shy of expectations. It was the second miss in a row, prompting analysts to cut their numbers for both the current year and next year. That dropped the Zacks Consensus Estimates for the current year from $4.31 to $3.30 while next year’s is off from $4.89 to $3.63.
The Textile – Apparel industry is in the Bottom 31% of our Zacks Industry Rank.
Additional content:
U.S. Natural Gas: Analysis of EIA's Weekly Inventory
The U.S. Energy Department's weekly inventory release showed a smaller-than-expected decrease in natural gas supplies. The negative inventory numbers, coupled with other factors, meant that futures plunged more than 14% week over week.
Despite this, the market has been kind to natural gas in 2022, with the commodity trading considerably higher year to date and hitting $10 for the first time since 2008. Natural gas stocks like Range Resources, EQT Corp. and Comstock Resources have been some of the prime beneficiaries of the price appreciation.
EIA Reports a Withdrawal Smaller Than Market Expectations
Stockpiles held in underground storage in the lower 48 states fell 81 billion cubic feet (Bcf) for the holiday-shortened week ended Nov 25, below the guidance of 88 Bcf decline per the analysts surveyed by S&P Global Commodity Insights.
However, the decrease was above last year’s pull of 54 Bcf for the same corresponding week and the five-year (2017-2021) average net shrinkage of 34 Bcf.
The second draw of the winter heating season puts total natural gas stocks at 3,483 Bcf, which is 89 Bcf (2.5%) below the 2021 level at this time and 86 Bcf (2.4%) lower than the five-year average.
The total supply of natural gas averaged 106.4 Bcf per day, down 0.6 Bcf per day on a weekly basis due to lower shipments from Canada, partly offset by an increase in dry production.
Meanwhile, daily consumption slumped 13.7% to 108.6 Bcf from 125.9 Bcf in the previous week, mainly reflecting a weaker power burn and decreased residential/commercial demand on the back of above-normal temperatures.
Natural Gas Logs a Big Weekly Loss
Natural gas prices tumbled last week, following the lower-than-expected inventory draw. Futures for January delivery ended Friday at $6.281 on the New York Mercantile Exchange, falling around 14.3% from the previous week’s closing. The decrease in natural gas realization — for the first time in four weeks — is also the result of forecasts for milder weather and the extended shutdown of the Freeport LNG export plant in Texas.
As is the norm with natural gas, changes in temperature and weather forecasts can lead to price swings. The latest models anticipate tepid temperature-driven consumption over the near term (with less extensive use of heaters across homes and businesses), which is a negative for prices.
The one thing supporting natural gas is a stable demand catalyst in the form of continued strong LNG feedgas deliveries. LNG shipments for export from the United States have been robust for months on the back of environmental reasons and record-high prices of the super-chilled fuel elsewhere.
Now, with the Russia-Ukraine conflict, LNG has become even more coveted. As a matter of fact, earlier this year, the United States entered into a partnership with the EU to export additional LNG to wean the bloc off its dependence on Russian natural gas supplies. This means that LNG deliveries are poised to rise further, especially with squeezed natural gas supplies from Moscow to Europe, following leaks in the key Nord Stream pipeline.
However, the protracted downtime associated with the fire breakout at the Freeport LNG export plant in Texas has drowned out some of the positives as of now. The Quintana, TX facility — responsible for around 15% of U.S. liquefaction capacity — was knocked offline by the Jun 8 blast and is expected to only partially restart by the end of December after several missed target dates. Consequently, some of the LNG cargoes due for export are likely to have been diverted to the domestic market despite huge demand abroad.
Final Thoughts
Despite some hiccups in between, the natural gas market is still up almost 70% so far this year. While fundamental indicators continue to suggest strong price levels, the natural gas market is currently quite unpredictable and spooked by the sudden changes in weather. As such, investors are rather unsure of what to do. As of now, the lingering uncertainty over the fuel means that they should preferably opt for fundamentally strong stocks like Range Resources, EQT and Comstock Resources.
Range Resources: The upstream firm has a strong footing in the prolific Appalachian Basin. In the gas-rich resource, RRC has huge inventories of low-risk drilling sites that are likely to provide production for several decades.
Range Resources has a projected earnings growth rate of 151.5% for the current year. Valued at around $6.5 billion, this Zacks Rank #3 (Hold) company reported EPS of $1.37 for the third quarter, reflecting a 0.7% surprise over consensus. RRC shares have climbed 45.2% in a year.
You can see the complete list of today’s Zacks #1 Rank stocks here.
EQT: EQT is primarily an explorer and producer of natural gas, with the primary focus on the Appalachian Basin in Ohio, Pennsylvania and West Virginia. In terms of average daily sales volumes, EQT is the largest natural gas producer in the domestic market.
The company has an expected earnings growth rate of 348.9% for the current year. The Zacks Consensus Estimate for EQT’s 2022 earnings has been revised 2.5% upward over the past 90 days. EQT — valued at around $14.7 billion — has soared 104% this year.
Comstock Resources: The company is active in the Haynesville shale in North Louisiana and East Texas — a premier natural gas basin. As of now, CRK has a projected earnings growth rate of 218.1% for the current year.
Comstock Resources, with a market capitalization of $3.9 billion, enjoys a Zacks Value, Growth and Momentum Style Score of A each, and an overall VGM Score of A. CRK shares have surged 117.6% so far this year.
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Comstock Resources, Inc. (CRK) : Free Stock Analysis Report
Range Resources Corporation (RRC) : Free Stock Analysis Report
EQT Corporation (EQT) : Free Stock Analysis Report
Titan Machinery Inc. (TITN) : Free Stock Analysis Report
GIII Apparel Group, LTD. (GIII) : Free Stock Analysis Report
