Yahoo Finance PDD Holdings and Kohl's have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – June 17, 2024 – Zacks Equity Research shares PDD Holdings PDD as the Bull of the Day and Kohl's KSS as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Exxon Mobil Corp. XOM, Chevron Corp. CVX and BP plc BP.
Here is a synopsis of all five stocks:
Bull of the Day:
Exxon Mobil Corporation is a well-rounded oil and gas titan that’s gone on an Pinduoduo or Zacks Rank #1 (Strong Buy) stock PDD Holdings is a Chinese e-commerce platform founded in 2015. Though PDD is much younger than its rivals like Alibabaor VIP Shop,PDD has gained significant popularity in a relatively short period, becoming one of the largest e-commerce companies in China.
Temu, an Emerging E-Commerce Juggernaut
Temu, PDD's e-commerce website, has put PDD on the map. Temu is an online marketplace and e-commerce platform that has garnered popularity for its extensive offering of affordable products. The e-commerce platform launched in September 2022 is available in both China and the United States. The Temu app gained a massive following and a quick foothold in the United States e-commerce market after PDD management boldly decided to purchase an expensive Super Bowl ad in 2023.
Amazon vs. Temu
Traditionally, Amazon has enjoyed a stranglehold on the U.S. e-commerce market and has dominated foreign and domestic. However, Temu has taken a unique approach and is catering to a growing niche. Rather than assuming customers would rather have their products shipped to them immediately, and for a slightly higher cost, Temu is catering to a small but rapidly growing segment of the market that is willing to wait for lower prices.
Instead of sourcing products from several different intermediaries, Temu operates a marketplace model that connects buyers directly with sellers and ships cheap goods directly from China. Though the products take longer to ship than Amazon goods, for example, American e-commerce customers who have been squeezed by stubborn and rampant inflation are willing to wait longer to save money.
Explosive Earnings Growth
PDD is growing earnings faster than almost any public e-commerce company. Wall Street sees the rapid growth continuing and expects EPS growth of ~97% next quarter and EPS growth of 85% for the full year 2024.
Bullish EPS Surprise History
Though PDD's expectations are high, the company has illustrated that it can consistently beat Wall Street's expectations. Over the past four quarters, PDD has beat EPS expectations by an average of 45%.
Relative Strength vs. Peers
Relative price action is one of the most straightforward and powerful indicators in the investor toolbox. PDD is up 88.5%, while industry peers like BABA lag behind (-15%).
Bottom Line
PDD's unique Temu platform is helping e-commerce shoppers fight inflation while growing the company's earnings rapidly.
Bear of the Day:
Kohl's is a U.S.-based department store chain that operates specialty department stores and an e-commerce site. The company offers moderately priced apparel, footwear, and accessories for women, men, and children.
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 is in the Zacks Retail – Regional Department Stores industry, which is currently ranked in the bottom 18% of all Zacks industries. Let's take a closer look at the company.
Kohl's
Kohl's has struggled to exceed top and bottom line expectations as of late, falling short of the Zacks Consensus EPS estimate by an average of 123% across its last four releases. Just in its latest print, Kohl's fell short of our consensus EPS estimate by 700%, with sales of $3.8 billion also 5% lower than expected.
Shares faced pressure following the release, with KSS shares down nearly 20% overall in 2024.
Tom Kingsbury, CEO, on the results, "We continue to have high conviction in our strategy and believe that our key growth initiatives, including Sephora, home decor, gifting, impulse, and our upcoming partnership with Babies "R" Us, will contribute more meaningfully going forward. That said, we recognize we have more work to do in areas of our business. We are approaching our financial outlook for the year more conservatively given the first quarter underperformance and the ongoing uncertainty in the consumer environment."
Nonetheless, the company remains positive, looking to strengthen its balance sheet via debt reduction throughout 2024.
Bottom Line
Negative earnings estimate revisions from analysts stemming from weak quarterly results paint a challenging picture for the company's shares in the near term.
Kohl's 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:
3 Energy Stocks to Gain from Seismic Imaging Technologies
Oil and gas companies are increasingly directing investments toward new technologies in seismic imaging, drilling techniques and reservoir management to tackle pivotal challenges and seize strategic opportunities within the industry.
Investing in Seismic Imaging Technologies
Enhanced seismic imaging capabilities facilitate more accurate subsurface mapping, thereby lowering exploration risks and refining resource evaluations. Innovations in horizontal drilling and hydraulic fracturing unlock previously inaccessible reserves, significantly boosting operational efficiencies.
Moreover, digital reservoir management systems, integrating real-time data analytics and advanced simulation models optimize production rates, extend asset lifespans and enhance recovery rates. These advancements not only elevate operational effectiveness and cost-efficiency but also align with sustainability objectives, ensuring environmental compliance and minimizing ecological footprints.
3 Stocks to Keep an Eye On
Ultimately, embracing these cutting-edge technologies equips oil and gas firms to sustain competitiveness, mitigate operational uncertainties and navigate fluid market dynamics in an evolving global energy landscape.
Thus, it is time for investors to keep an eye on energy majors investing in advanced seismic imaging technologies and digital reservoir management systems. We have zeroed in on three such stocks — Exxon Mobil Corp., Chevron Corp. and BP plc — that are well poised to gain. All the stocks carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
ExxonMobil's strategic deployment of advanced seismic imaging and digital reservoir management technologies has yielded significant exploration successes in the Stabroek Block. These cutting-edge tools have been instrumental in deciphering the complex geological structures of the region, thereby enabling the optimization of development strategies.
In the Permian Basin, ExxonMobil leverages digital oilfield technologies and real-time monitoring systems to boost production efficiency and enhance reservoir management. The integration of high-resolution seismic data facilitates the precise identification of new drilling targets and the optimization of well placement, underscoring the company's commitment to leveraging technological innovation for operational excellence.
Chevron's deployment of advanced seismic imaging and digital reservoir management systems in the Permian Basin, one of the United States' most prolific oil fields, has markedly enhanced production efficiency and recovery rates. These technological investments have substantially optimized operations, highlighting Chevron's strategic focus on leveraging cutting-edge innovations to maximize resource extraction and operational performance.
BP's strategic deployment of ocean bottom nodes seismic surveys and real-time data analytics in the deepwater Gulf of Mexico has resulted in the identification of new reserves and the optimization of production from existing fields. These initiatives underscore BP's effective use of advanced technologies to drive exploration success and operational efficiency in a challenging offshore environment.
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