For Immediate Release
Chicago, IL – April 24, 2023 – Zacks Equity Research shares Harrow Health HROW as the Bull of the Day and CDW CDW as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Toyota TM, BYD Co Ltd. BYDDY and Ferrari N.V. RACE.
Here is a synopsis of all five stocks.
Bull of the Day:
Harrow Health is a Zacks Rank #1 (Strong Buy) and it sports an F for Value and a D for Growth. This company is a lot like a “roll up” play in the healthcare space and that diversity could be helping it keep its stock price moving higher. Let’s explore more about this company in this Bull of The Day article.
Description
Harrow Health Inc. owns a portfolio of healthcare businesses, including an ophthalmology pharmaceutical compounding business, ImprimisRx. The company holds Eton Pharmaceuticals, Surface Pharmaceuticals, Melt Pharmaceuticals, Mayfield Pharmaceuticals and Radley Pharmaceuticals as subsidiaries. Harrow Health Inc., formerly known as Imprimis Pharmaceuticals Inc., is based in San Diego, United States.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For Harrow Health, I two beats of the Zacks Consensus Estimate that are sandwiched by a miss and a quarter that had no estimate. That is not that great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher.
Over the last 60 days, earning estimates have moved around for HROW.
The full fiscal year 2023 has increased from $0.14 to $0.31 over the last 30 days.
Next fiscal year, estimates spike higher to $1.51 from $0.82 over the same time period.
Those are significant moves higher in a time when so many are calling for recession.
Positive movement in earnings helped move this stock to a Zacks Rank #1 (Strong Buy).
Valuation
The valuation is not for the faint of heart. I see a forward PE 78x which is high no matter who you compare it to. The company showed almost no top line growth in the most recent quarter, but I do see that analysts are looking for 56% revenue growth this year and 31% next year. This name is certainly a good one to keep on your radar screen.
Bear of the Day:
CDW is a Zacks Rank #5 (Strong Sell) and has seen earnings estimates slide lower in a big way recently. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
Description
Headquartered in Vernon Hills, IL, CDW Corporation, founded in 1984, is a leading provider of integrated information technology (IT) solutions to small, medium and large business, government, education and healthcare customers in the United States, United Kingdom and Canada.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of CDW, I see four straight beats and of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #1 (Strong Buy) and it doesn’t make it a Zacks Rank #5 (Strong Sell) either.
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For CDW I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $10.34 to $9.85 over the last 7 days.
The next year has moved from $11.34 to $10.89. over the last 60 days.
That move lower is probably the biggest deciding factor for this stock to be a Zacks Rank #5 (Strong Sell).
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing negative earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
Toyota’s (TM) Electric Sedan Gets 5000 Orders per Day
Toyota‘s first-ever electric sedan, bZ3, has made an impressive debut, with 5,000 orders pouring in on its first day of sales. Developed through a partnership between FAW-Toyota and China’s leading EV manufacturer, BYD Co Ltd., bZ3 is Toyota’s second fully electric vehicle in its bZ (Beyond Zero) series. The first was the bZ4X SUV, which marked the Japanese automaker’s entry into the global EV market.
bZ3, which was officially unveiled in October, is built on Toyota’s e-TNGA platform, the same as bZ4X. However, it features a lithium-ion LFP Blade battery, electric motor, and electronic control system from BYD. With a low center of gravity and an upgraded interior, the bZ3 distinguishes itself from Toyota’s electric SUV. It also boasts Toyota’s largest 12.8-inch suspended multimedia navigation system.
FAW-Toyota introduced the first bZ3 model in March, offering a maximum CLTC range of 616 km (approximately 382 miles) and a starting price of 189,800 RMB (around $27,000). The strong demand for bZ3 on its launch day signals a promising future for the electric sedan, with sales expected to continue their upward trend.
bZ3 comes in three versions: Elite PRO, long-range PRO, and long-range Premium. Elite PRO, priced at 169,800 RMB ($24,680), offers a range of 517 km (321 miles), while long-range PRO and long-range Premium, priced at 189,800 RMB ($27,587) and 199,800 RMB ($29,041), respectively, provide a 616 km (382 miles) range each.
bZ3 is available with two different battery sizes — 135 kW and 180 kW — with both producing a maximum torque of 303 nm (224 lb-ft). The two battery packs — 49.9 kWh and 65.3 kWh — deliver ranges of 517 km (321 miles) and 616 km (382 miles), respectively, under the CLTC standard. Toyota claims that bZ3 can charge from 30% to 80% in just 27 minutes using DC fast charging. Additionally, customers who purchase a bZ3 between Apr 16 and Jul 31, 2023, will receive a limited-time benefit of 15,000 RMB ($2,180).
The success of bZ3 should encourage Toyota to expand its electric vehicle offerings. The company has faced challenges in transitioning to fully electric vehicles, with the bZ4X rollout failing to meet expectations. The partnership with BYD seems to be helping Toyota find its footing in the EV market.
Newly appointed CEO Koji Sato is expected to guide Toyota in a new direction, following the hesitance of his predecessor, Akio Toyoda, to fully commit to electric vehicles. Although bZ3 will not be available in the United States, Toyota plans to launch a new three-row SUV as part of its strategy to introduce 10 new EV models by 2026.
Toyota’s position in the EV market is likely to be strengthened with the successful launch of bZ3. The partnership with BYD and the positive market response to the electric sedan are likely to have a significant impact on the company’s stock. Toyota continues to innovate and expand its EV lineup. Investors should keep a close eye on this automaker as it navigates the rapidly changing landscape of e-mobility.
Zacks Rank & Key Picks
Toyota currently carries a Zacks Rank #3 (Hold).
A better-ranked player in the auto space is Ferrari N.V., each sporting a Zacks Rank #1 (Strong Buy) at present.
Ferrari is engaged in designing, manufacturing and selling sports cars. The Zacks Consensus Estimate for RACE’s 2023 sales and earnings implies year-over-year growth of 14% and 19.8%, respectively.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Toyota Motor Corporation (TM) : Free Stock Analysis Report
CDW Corporation (CDW) : Free Stock Analysis Report
Ferrari N.V. (RACE) : Free Stock Analysis Report
Harrow Health, Inc. (HROW) : Free Stock Analysis Report
Byd Co., Ltd. (BYDDY) : Free Stock Analysis Report