Yahoo Finance Arista Networks and Park National have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 13, 2023 – Zacks Equity Research shares Arista Networks ANET as the Bull of the Day and Park National PRK as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Petrobras S.A. PBR, Equinor EQNR and NGL Energy Partners NGL.
Here is a synopsis of all five stocks:
Bull of the Day:
Stocks faced adverse price action following Powell's testimony last week, with hawkish comments surrounding the peak Fed funds rate spooking investors.
Still, the outlook remains strong for many stocks, including Arista Networks. The company currently sports the highly-coveted Zacks Rank #1 (Buy), with earnings estimates drifting higher across all timeframes.
Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The company utilizes a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud footprint.
Let's take a closer look at how the company currently stacks up.
Quarterly Performance
ANET has consistently delivered strong quarterly results, exceeding the Zacks Consensus EPS Estimate by double-digit percentages in three consecutive quarters.
Just in its latest release, ANET reported bottom line results 16.5% above expectations and delivered a 6.6% revenue surprise. Below is a chart illustrating the company's revenue on a quarterly basis.
The market has undoubtedly appreciated ANET's quarterly results, with shares soaring following each of its last three releases.
Valuation
ANET's 25.7X forward earnings multiple is on the higher end of the spectrum but remains well below the 34.2X five-year median and nearly unbelievable highs of 66.7X in 2022.
Further, the company's forward price-to-sales presently sits at 8.3X, a few ticks below the 8.5X five-year median and highs of 15.1X in 2022.
Growth Estimates
And to top it off, the company sports a strong growth profile, with the Zacks Consensus EPS Estimate of $5.79 for its current fiscal year (FY23), indicating an improvement of 26% year-over-year.
And in FY24, the company's earnings are forecasted to grow a further 11%.
The projected earnings growth comes on the back of forecasted year-over-year revenue upticks of 25% in FY23 and 11% in FY24.
Bottom Line
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Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Arista Networkswould be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
Bear of the Day:
Although stocks got off to a better start in 2023 than in 2022, the outlook isn't bright for all.
One such company, Park National, has seen its near-term earnings outlook drift lower across all timeframes over the last several months, pushing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Park National is a family of community banking teams delivering resources to individuals and businesses with a hands-on approach.
Let's take a closer look at how the stock currently stacks up.
Quarterly Performance
Park National has struggled to exceed quarterly estimates as of late, falling short of the Zacks Consensus EPS Estimate in three consecutive quarters.
Just in its latest release, the company fell short of bottom line expectations by nearly 23% and reported revenue 4.5% below the consensus estimate. Below is a chart illustrating the company's revenue on a quarterly basis.
The market didn't take the recent miss lightly, with shares embarking on a downward plunge following the release.
Dividends
The stock does pay an annual dividend, currently yielding a solid 3.5% annually and sitting well above the Zacks Finance sector average.
And the company has shown a commitment to increasingly rewarding its shareholders, upping its payout six times just over the last five years.
Growth Estimates
PRK's earnings are expected to get a nice boost in its current fiscal year, with the $8.67 Zacks Consensus EPS Estimate indicating a positive 6% year-over-year change.
Still, growth tapers off in FY24, with estimates calling for a 12% pullback year-over-year within earnings.
Bottom Line
Weak quarterly results and negative earnings estimate revisions from analysts paint a challenging picture for the company in the near term.
Park Nationalis a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company's earnings outlook over the last several months.
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:
Petrobras, Equinor Partner on Offshore Wind in Brazil
Petrobras S.A., a Brazilian state-owned oil and gas company, collaborated with Equinor, a Norwegian multi-national energy company, on developing offshore wind energy projects in Brazil. The joint exploration and development of wind energy will take place in Brazil's offshore waters, specifically on the coasts of Piauí, Ceará and Rio Grande do Sul, which are favorable for renewable energy development. The agreement will be effective until 2028.
Petrobras and Equinor's partnership, which began in 2018 with two planned wind farms — Aracatu I and II, has grown beyond initial expectations. Petrobras's extensive experience in offshore oil and gas exploration and production has allowed it to build a large portfolio of offshore platforms and infrastructure. This infrastructure can be repurposed for offshore wind energy projects, providing efficient and cost-effective deployment of wind turbines.
As part of the new agreement, an assessment will be conducted on the viability of five additional wind farm projects — Mangara, Ibitucatu, Colibri, Atobá and Ibituassu. These projects have the potential to generate up to 14.5 GW and will be studied for their technical, economic and environmental feasibility.
The main project in the partnership is the construction of an offshore wind farm, off the coast of Rio de Janeiro. Equinor will be the operator of the wind farm, while Petrobras will provide the logistical support and supply vessels for the project. The two companies have agreed to work on other offshore wind projects to increase Brazil's renewable energy capacity.
Petrobras aims to diversify its energy portfolio and reduce reliance on fossil fuels. The partnership with Equinor is part of its strategy to achieve a net-zero carbon emissions target by 2050. Equinor has already established a strong presence in Brazil's offshore wind market by winning a significant share of the country's first offshore wind auction in 2021. It has also worked with local partners to develop wind projects in the country, including the Apodi Solar plant, operated by Scatec, which began production in 2018.
The agreement between Petrobras and Equinor is a milestone in the advancement of Brazil's offshore wind industry. It highlights the potential for collaboration between international and local companies in developing renewable energy projects in the country. Offshore wind is an important source of renewable energy that can help reduce carbon emissions and mitigate the effects of climate change. Brazil has the potential to become a major player in this industry, and the partnership is a positive step toward achieving this goal.
Petrobras S.A., headquartered in Rio de Janeiro, is the largest integrated energy company in Brazil and one of the largest in Latin America. It engages in activities such as oil exploration, exploitation, refining, processing, trading and transportation, natural gas and other fluid hydrocarbons, and other energy-related activities.
Zacks Rank and Key Picks
Currently, Petrobras carries a Zacks Rank #3 (Hold). Investors interested in the energy sector might also look at some better-ranked stocks like NGL Energy Partners, sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
NGL Energy Partners: NGL Energy Partners is worth approximately $509.53 million. Its shares have increased 48.8% in the past year.
NGL Energy Partners LP is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.
NGL Energy Partners is worth $509.53 million. Its shares have gained 48.8% in the past year.
NGL Energy Partners is a limited partnership company that operates a vertically-integrated propane business with three segments — retail propane, wholesale supply and marketing, and midstream.
Energy Transfer LP is valued at around $40.85 billion. ET delivered an average earnings surprise of 11.43% for the last four quarters, and its current dividend yield is 9.48%.
Energy Transfer LP currently has a forward P/E ratio of 9.17. In comparison, its industry has an average forward P/E of 9.40, which means Energy Transfer LP is trading at a discount to the group.
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Petroleo Brasileiro S.A.- Petrobras (PBR) : Free Stock Analysis Report
NGL Energy Partners LP (NGL) : Free Stock Analysis Report
Park National Corporation (PRK) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Equinor ASA (EQNR) : Free Stock Analysis Report
