For Immediate Release
Chicago, IL – May 2, 2022 – Zacks Equity Research shares GasLog Partners GLOP as the Bull of the Day and MicroStrategy MSTR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Uber Technologies UBER, ACM Research ACMR and Arlo Technologies ARLO.
Here is a synopsis of all five stocks:
Bull of the Day:
The war in Europe is disrupting the world on many levels. Above and beyond the humanitarian casualties, there are supply shocks across the globe. Energy, specifically natural gas, has seen huge spikes. Before the war, Russia supplied a big chunk of Europe’s natural gas. The EU has since vowed to rid itself of this gas dependence. It’s making for higher prices and huge opportunities for LNG carriers.
One such LNG carrier is today’s Bull of the Day, GasLog Partners. GasLog Partners LP acquires, owns, and operates liquefied natural gas (LNG) carriers under multi-year charters. As of February 24, 2022, it operated a fleet of 15 LNG carriers. The company was founded in 2014 and is based in Piraeus, Greece.
GasLog Partners is a Zacks Rank #1 (Strong Buy) in the Transportation – Shipping industry which ranks in the Top 12% of our Zacks Industry Rank. In addition to the favorable Zacks Rank, the company enjoys a Zacks Value Style Score of A, Growth of C and Momentum of F to help it round out with a VGM Composite Score of B.
Over the last week alone, 2 analysts have increased their earnings estimates for the current year and next year. The bullish sentiment has pushed up our Zacks Consensus Estimates for the current year from $1.55 to $1.80 while next year’s number is up from $1.01 to $1.33.
That means the stock is currently trading at 2.67x earnings. Compare that to the industry average of 7.8x or the broad market’s 18.2x. Part of the reason for that is the earnings contraction upcoming. Still, hard to punish a stock for a banner year like this just because next year prices are likely to come back to Earth.
Bear of the Day:
Tech stocks continue to come under pressure on Wall Street. One day, we get a great Facebook report that gives us a big rally. The next, Amazon disappoints and it all gets erased. The risk-off behavior has spilled over from tech stocks to cryptocurrency. That certainly does not bode well for you when you are a tech stock heavily involved in cryptocurrency. Today’s Bear of the Day is one such stock, MicroStrategy.
MicroStrategy Incorporated provides enterprise analytics software and services worldwide. It offers MicroStrategy, an enterprise platform, which provides a modern analytics experience by delivering insights across multiple devices to users via hyperintelligence products, visualization and reporting capabilities, mobility features, and custom applications developed on the platform; analysts and data scientists with seamless access to trusted, governed data directly within their tools; and APIs and gateways, multiple deployment options, enterprise semantic graph, scalability, and security.
MicroStrategy became famous after becoming one of the first publicly traded companies to load its balance sheet with bitcoin. Last quarter alone, the company bought 4,167 bitcoin, giving it a whopping 129,218 in reserves.
MicroStrategy is a Zacks Rank #5 (Strong Sell). The reason for the unfavorable rank is recent earnings estimates coming from analysts on Wall Street. Over the last 60 days, the current year Zacks Consensus Estimate is off from $7.73 to $6.64 while next year’s number is off from $6.76 to $5.86. That means analysts are expecting to see an 11.75% contraction in earnings next year. That’s slated to happen on revenue growth of 5.4%.
MicroStrategy is in the Computer – Software industry which ranks in the Bottom 39% of our Zacks Industry Rank.
Can UBER Deliver a Beat on Q1 Earnings Despite Omicron Woes?
Uber Technologies is scheduled to report first-quarter 2022 earnings numbers on May 4, after market close.
The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 126.4%.
Let’s see how things are shaping up for Uber this earnings season.
Uber Technologies, Inc. price-eps-surprise | Uber Technologies, Inc. Quote
Factors to Note
Higher online order volumes are expected to get reflected in Uber’s delivery gross bookings in the to-be-reported quarter. The Zacks Consensus Estimate for Delivery gross bookings indicates a rise of 2.7% from the sequential quarter’s reported number. Strong performance of the Delivery segment is expected to have boosted the company’s top line in the first quarter.
However, Omicron-induced softness in mobility demand is expected to have hurt Mobility gross bookings and revenues on a sequential basis. The Zacks Consensus Estimate for Mobility gross bookings hints at a decline of 8.8% from the fourth-quarter 2021 reported figure. The same for Mobility revenues suggests a 4.9% decrease from the fourth-quarter 2021 reported number. Uber expects the negative impact on Mobility gross bookings to affect first-quarter gross bookings by $1 billion-$1.2 billion.
Nevertheless, with strong improvement in mobility demand (ride trips recovered 90% in February from the 2019 level, while gross bookings were just 5% below the February 2019 level) on a year-over-year basis and continued rise in delivery demand, Uber expects total gross bookings to be $25 billion-$26 billion in the soon-to-be-reported quarter, indicating a rise of 28-33% from the year-ago period.
Improvement in mobility demand and strong delivery gross bookings are expected to have boosted UBER’s adjusted EBITDA in the first quarter. The company expects adjusted EBITDA of $130-$150 million in the to-be-reported quarter compared with $86 million reported in the fourth quarter of 2021.
High sales and marketing expenses, as well as costs associated with paying incentives to drivers due to business model changes in some countries, are likely to have hurt Uber’s bottom line in the first quarter.
What the Zacks Model Unveils
The proven Zacks model predicts an earnings beat for Uber this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Uber has an Earnings ESP of +0.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Uber carries a Zacks Rank #3.
Highlights of Q4 Earnings
Uber reported fourth-quarter 2021 earnings of 44 cents per share against the Zacks Consensus Estimate of a loss of 33 cents. Total revenues of $5,778 million surpassed the Zacks Consensus Estimate of $5,391.2 million. The top line jumped 82.6% from the year-ago period (improved 19.3% sequentially), primarily due to a rebound in mobility operations and profits at the Delivery segment.
Other Stocks to Consider
Investors interested in the broader Computer and Technology sector may also consider ACM Research and Arlo Technologies. These companies also possess the right combination of elements to beat on earnings in this reporting cycle.
ACM Research has an earnings ESP of +44.44% and a Zacks Rank #3. The company will announce first-quarter 2022 results on May 6.
ACM Research’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters, while missing the same in one. The average beat was 55.7%.
Arlo Technologies has an earnings ESP of +33.33% and a Zacks Rank #3. The company is slated to release first-quarter results on May 10.
Arlo Technologies’ earnings have surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 108.8%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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ACM Research, Inc. (ACMR) : Free Stock Analysis Report
MicroStrategy Incorporated (MSTR) : Free Stock Analysis Report
GasLog Partners LP (GLOP) : Free Stock Analysis Report
Arlo Technologies, Inc. (ARLO) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
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