For Immediate Release
Chicago, IL – July 10, 2017 –Zacks Equity Research Delta Air Lines (NYSE:DAL) (NYSE: DAL – Free Report ) as the Bull of the Day, Apache (NYSE: APA – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Wynn Resorts (NASDAQ: WYNN – Free Report ), Melco Crown Entertainment (NASDAQ: MLCO – Free Report ) and Las Vegas Sands (NYSE: LVS – Free Report ).
Here is a synopsis of all five stocks:
With slumping oil prices, a number of industries in the broader transportation world look to benefit. One that should definitely come to mind in this type of environment is the airline space. This area tends to see a sizable percentage of its costs go to fuel, so a reduced—or at least stable—oil price should be great news for this segment.
We have definitely seen airline companies bounce back in recent months, partially as a result of these lower oil prices, though a stronger U.S. economy isn’t hurting matters either. No wonder the industry currently has an industry rank in the top 5%, and why not a single stock in the group has a Zacks Rank #5 (Strong Sell), out of nearly two dozen companies.
But which company do you want to focus on in this impressive group?
Well, one that might deserve a closer look isDelta Air Lines (NYSE: DAL – Free Report ). This might be one of the best positioned in the space, at least if we look to earnings estimate revisions as a guide.
Recent Estimates
In the last two months, analysts covering Delta stock have been raising their estimates for the company’s earnings, almost universally. We have seen five estimates go higher in the current quarter, and six go higher for the current year time frame.
This has also helped to boost the consensus estimate for DAL stock, as we have seen the current quarter projection increase by 3.8% in the past two months and over 7% for the next quarter. The full year estimate has moved higher by over five percent in the same time frame, and analysts now expect year-over-year growth for the company on the earnings front too.
The most recent estimates on DAL stock have also been higher, and the company has a great history in earnings season and can clearly live up to expectations on a regular basis. In fact, Delta has only missed earnings estimates once in the past three years, so it certainly has a good track record.
Oil has been struggling as of late, and the energy sector has easily been the worst performing major market segment to start 2017. This is despite some recent news that was actually pretty positive for the space, as we saw a rather large drawdown in the EIA report this past week.
However, shale production in the U.S. remains high, and global supplies of oil are surging, led by rising Libyan output and the unlikely prospect of Russia agreeing to further OPEC-led cuts. So, in this type of environment, oil has a hard time breaking out higher, even on what would otherwise be solid news.
As you might expect, this situation is pretty poor for energy-focused stocks, as the sector currently occupies the bottom of the sector rank list. And in terms of weak industries, the exploration space is especially troubled, and has a bottom 25% industry rank to reflect that standing too. Due to this, it is probably a good idea to avoid Apache (NYSE:APA – Free Report ) in this environment, and that is especially the case if we look to earnings estimate revisions for this company too.
APA Estimates
Thanks to the rough energy situation, exploration and production companies like Apache are in a rough spot. Sure, earnings are expected to grow when compared to the even more horrid environment of last year, but things aren’t looking as impressive as they used to for this company.
In fact, over the past sixty days, we have seen five estimates go lower for the current quarter earnings compared to just one higher, while we have seen a similar trend for the current year, as eight estimates have gone lower compared to just two higher.
The magnitude of these estimate cuts has also been pretty intense, as the consensus has fallen from 20 cents a share sixty days ago to just 13 cents a share today, while we have seen a slashing of the consensus from $1.18/share to $0.80/share in the same time frame for the current year.
That isn’t even the end of the bad news though, as the most accurate estimate is even lower. The most accurate estimate for the current quarter is just 11 cents per share—a 15% reduction—while the current year is at sixty cents per share, a 25% reduction from the current consensus.
Additional content:
3 Casino Stocks to Buy Now
Perhaps it’s because trading stocks can often mirror the thrill of winning big at the blackjack tables, or maybe it’s because Las Vegas conjures images of the world’s most flashy brands and businessmen. Regardless of the reason, it’s clear that casino stocks are always among the most popular on Wall Street.
Luckily for investors, now is also a great time to be buying casino stocks, as continued domestic strength and a great recovery in Macau have led to rising share prices. In fact, according to our Zacks Industry Rank data, the overall gaming industry has gained more than 19% year-to-date, outpacing the S&P 500’s mere 9% gain.
With casino stocks this hot right now, investors are not going to want to miss out. Luckily, we can use Zacks’ proven stock-picking methods to find solid stocks in any industry. Check out these highly-ranked casino stocks today:
1. Wynn Resorts (NASDAQ:WYNN – Free Report )
Led by the legendary Steve Wynn, this iconic gaming brand once again posted impressive earnings results in the most recent quarter. Wynn reported earnings of $1.24 per share and revenues of $1.48 billion, surpassing our respective consensus estimates of $0.74 and $1.34 billion. The company’s new Macau resort, the Wynn Palace, marked its second full quarter of operations, lifting total revenue figures 48% on a year-over-year basis.
Since the report, we’ve seen a flurry of earnings estimate revision activity for WYNN, lifting its current-quarter Zacks Consensus Estimate by 28 cents and giving the stock a Zacks Rank #2 (Buy). And looking down the road, Wynn is positioned well in Macau and Vegas; the company just finalized plans for the Le Reve which it has designed to be the preeminent luxury hotel and destination casino resort in Sin City.
2. Melco Crown Entertainment (NASDAQ:MLCO – Free Report )
Melco Crown was another casino giant that really impressed in the most recent earnings season. The company, which gets the majority of its revenue from Macau, posted adjusted earnings of $0.24 per share, crushing the Zacks Consensus Estimate of $0.08. Revenues of $1.28 billion also topped our consensus estimate and soared 15.7% year-over-year.
Revenues in Macau grew 25.9% in the month of May, marking the eleventh-straight month of growth in the region. This is great news for Melco Crown, which has steadily risen all year. Indeed, shares are up nearly 37% year-to-date. Nevertheless, this Zacks Rank #2 (Buy) stock is poised to break even higher.
3. Las Vegas Sands (NYSE:LVS – Free Report )
With properties like the Venetian and the Parisian, Las Vegas Sands is the epitome of luxury and style in the casino industry. After beating the Zacks Consensus Estimate in the latest quarter, the company is looking to continue its impressive momentum in the current quarter, where our latest consensus estimates call for EPS growth of 11% and revenue growth of 9%.
Overall, this stock has a Zacks Rank #2 (Buy) and a VGM grade of “A.” Las Vegas Sands boasts a net margin of 15.5% and RoE of 24.7%, both of which are better than their respective industry averages. This stock also has an “A” grade for Momentum and its full-year EPS estimates have gained 5% over the past 60 days.
Want more stock market analysis from this author? Make sure to follow @ Ryan_McQueeney on Twitter!
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Delta Air Lines, Inc. (DAL): Free Stock Analysis Report
Apache Corporation (NYSE:APA): Free Stock Analysis Report
Wynn Resorts, Limited (WYNN): Free Stock Analysis Report
Melco Crown Entertainment Limited (MLCO): Free Stock Analysis Report
Las Vegas Sands Corp. (LVS): Free Stock Analysis Report
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