Advertisement
Singapore markets close in 4 hours 54 minutes

  • Straits Times Index

    3,355.71
    +17.14 (+0.51%)
     

  • Nikkei

    39,725.43
    +94.37 (+0.24%)
     

  • Hang Seng

    17,819.00
    +100.39 (+0.57%)
     

  • FTSE 100

    8,166.76
    +2.64 (+0.03%)
     

  • Bitcoin USD

    63,101.56
    -207.20 (-0.33%)
     

  • CMC Crypto 200

    1,348.05
    +45.98 (+3.53%)
     

  • S&P 500

    5,475.09
    +14.61 (+0.27%)
     

  • Dow

    39,169.52
    +50.66 (+0.13%)
     

  • Nasdaq

    17,879.30
    +146.70 (+0.83%)
     

  • Gold

    2,335.40
    -3.50 (-0.15%)
     

  • Crude Oil

    83.52
    +0.14 (+0.17%)
     

  • 10-Yr Bond

    4.4790
    +0.1360 (+3.13%)
     

  • FTSE Bursa Malaysia

    1,601.23
    +3.03 (+0.19%)
     

  • Jakarta Composite Index

    7,149.47
    +9.85 (+0.14%)
     

  • PSE Index

    6,387.55
    -11.22 (-0.18%)
     

Bear Of The Day: Enovis (ENOV)

Brian Bolan
·2-min read

Enovis (ENOV) is a Zacks Rank #5 (Strong Sell) has seen earnings estimates slide lower recently despite a good history of beating Zacks Consensus Estimate. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.

Description

Enovis Corporation is a medical technology company. Its range of products, services and integrated technologies fuel active lifestyles in orthopedics and beyond. Enovis Corporation, formerly known as Colfax Corporation, is based in Wilmington, DE.

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.

ADVERTISEMENT

In the case of ENOV, I see four straight beats 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 ENOV I see annual estimates moving lower of late.

The current fiscal year consensus number moved lower from $2.27 to $2.26 over the last 60 days.

The next year has moved from $2.77 to $2.64 over the last 60 days.

Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).

It should be noted that a lot 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).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Enovis Corporation (ENOV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research