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Goodyear Tire & Rubber, Halliburton and Tesla Motors highlighted as Zacks Bull and Bear of the Day

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Chicago, IL - February 11, 2016- Zacks Equity Research highlights The Goodyear Tire & Rubber Company ( GT ) as the Bull of the Day and Halliburton Company ( HAL ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Tesla Motors ( TSLA ).

Here is a synopsis of all five stocks:

Bull of the Day :

The Goodyear Tire & Rubber Company ( GT ) celebrated its 117th year in business with record results in 2015. This Zacks Rank #1 (Strong Buy) is expected to grow earnings in the double digits again in 2016.

Goodyear is one of the world's largest tire companies with 49 production facilities in 22 countries around the world.

Another Beat in Q4

On Feb 9, Goodyear reported its fourth quarter results and beat the Zacks Consensus by 19 cents. Earnings were $0.93 compared to the consensus of $0.74.

It was the 7th straight beat in a row.

Earnings grew 16% in North America and 20% in Asia Pacific, both of which were records. The Europe, Middle East and Africa appeared to be on its way to recovery.

Sales, however, fell to $4.1 billion from $4.4 billion a year ago. Being a global company, the company saw unfavorable currency translation impacts to the tune of $339 million.

Tire unit volumes rose 7% to 42.1 million partially due to the acquisition of Nippon Goodyear Ltd in Japan. Replacement tire shipments rose 9% and original equipment unit volume jumped 2%.

Estimates Rise for 2016

With the solid earnings report, analysts have been raising estimates.

1 estimate was raised already since the report for 2016, pushing the Zacks Consensus to $3.71 from $3.65. That's earnings growth of 11.7%. Not too shabby in a difficult economic environment for an automotive parts manufacturer that is 117 years old.

Bear of the Day :

Halliburton Company ( HAL ) can do nothing but wait as crude prices continue to fall. This Zacks Rank #5 (Strong Sell) is still expected to see declining earnings again this year.

Halliburton provides services and products to the energy industry worldwide. It offers products to customers from exploration to drilling to well construction and completion to optimizing production.

A Beat in Q4 But Revenue Continues to Fall

On Jan 25, Halliburton reported its fourth quarter and full year results. While it beat the Zacks Consensus, the bigger story continues to be the decline in revenue.

Total revenue for the year fell 28% to $23.6 billion as the energy market struggled but that outperformed the 35% decline in the average worldwide rig count and global drilling and completions.

One brighter spot was the international business, where revenue fell "just" 16% year over year. North American revenue, however, declined 39% as companies continued to shut down their rigs.

The company also remains on track to acquire Baker Hughes, despite market conditions.

Estimates Cut for 2016 and 2017

Halliburton still expects 2016 to be "challenging." None of the companies in the service side of the energy industry see an end, yet, to the downturn.

The analysts are in agreement. They cut 2016 and 2017 estimates after the earnings report.

2016 earnings are now expected to decline 60% in 2016 compared to 2015. 14 estimates were cut for 2016 in the last month, pushing the Zacks Consensus down to $0.63 from $1.08. Halliburton made $1.56 in 2015.

Additional content:

Tesla Misses Big in Q4, but Sees Sunnier 2016

Electric vehicle manufacturer Tesla Motors ( TSLA ) reported Q4 earnings results after the bell Wednesday, and initially the results did not look pretty: an bottom-line miss of -$1.29 per share (accounting for stock-based compensation and other before non-recurring items [BNRI]) on revenues of $1.75 billion. The sales number only slightly missed the $1784 million we had expected, but the bottom line was down big from the -$0.34 per share the Zacks consensus had anticipated.

That said, after-market trading brought Tesla shares up 5 percent immediately after the earnings report was released. The reason behind this was Tesla's auto deliveries in 2015 and projections for 2016. The company delivered 17,272 Model S cars (up 76 percent year over year), which was above expectations, and 206 Model X SUVs, which was right in-line.

Further, Tesla expects deliveries of 80-90K automobiles total (Models S and X combined) for 2016, on-pace with its reiterated run rate guidance of 1600-1800 cars per week. Tesla also reaffirmed new sales growth of 60-80 percent for the coming year, and the company is expecting a net cash flow positive 2016. Its Gigafactory is also on schedule, which will become the biggest lithium ion generator in the world when it finally comes on line. (For more on Tesla's Gigafactory, click here: So What Actually Is Tesla's Gigafactory?

Tesla's anticipated Model 3 finally has an unveiling date: March 31, 2016, with expected deliveries to begin in late 2017. The most remarkable aspect of the Model 3 at this juncture is its reaffirmed price tag: $35K, not including clean energy incentives. Aside from the Gigafactory, the Model 3 appears to be the game-changer from Tesla, which would help explain the company's market cap of roughly $19 billion.

It's been a rough year for Tesla (and a rough week for CEO Elon Musk, who also owns SolarCity [ SCTY ], which tanked following its earnings release earlier in the week), down roughly 34 percent year over year prior to this significant after-market surge -- +14 percent as of this report -- and a full 40 percent just since the start of 2016. Today's letter to shareholders marks the first time projections have gone up for Tesla looking forward, and Musk's forthcoming conference call should also generate some positive waves.

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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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GOODYEAR TIRE (GT): Free Stock Analysis Report

HALLIBURTON CO (HAL): Free Stock Analysis Report

TESLA MOTORS (TSLA): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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