Zacks Analyst Blog Highlights Avis Budget, NXP Semi, Clorox, MGM Resorts and Expedia
For immediate release
Chicago, IL – May 3, 2022 – Zacks.com announces the list of stocks featured in the analyst blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and financial markets. Stocks recently featured in the blog include: Avis Budget CAR, NXP Semi NXPI, Clorox CLX, MGM Resorts MGM and Expedia EXPE.
Here are the highlights from Monday’s analyst blog:
Market Flip High Late Monday; Q1 Beats for CAR, NXPI, CLX and more
Stock indices rallied at the close to start a new week of trading yesterday, continuing historic volatility along the way. Hit session lows heading into the final hour – the Dow was -527 points at its lowest, while the Nasdaq hit a low not seen since November 2020 – but once it l did, the turnaround was swift and decisive. The Dow ended at +0.26%, the S&P 500 at +0.57%, the Nasdaq at +1.63% (+201 points) and the small-cap Russell 2000 at +0.93%.
We don’t see cycle spikes in volatility – those came in early March, before the Fed’s last monetary policy meeting – but it sure looks like it. After nestling at levels below 20 early last month, the VIX has rebounded north of 30 again, for the fourth time in the past five sessions. During Friday afternoon’s big sale, the VIX came back up to the mid-30s and stayed there. Lots of uncertainty ahead of another Fed meeting.
Additionally, the 10-year bond yield crossed 3% for the first time since December 2018 today. It closed the session after this peak, but it is clear that bonds are already pricing in Fed hikes in real time. Although remaining within 25 basis points of a second reversal over the past few weeks, we see the 10-year – which was below 1.2% as recently as last summer – taking off ahead of the market meeting. Fed this week.
In Q1 revenue, Zacks ranks second (buy) Budget Reviews Estimates crushed after Monday’s closing bell: Earnings of $9.99 per share more than doubled the $3.54 expected and are in another stratosphere from the -46 cents per share reported in the quarter last year. Revenue of $2.43 billion also easily exceeded the $2.18 billion expected in the Zacks consensus. Shares initially rose +12% on the news and remained above +8% by the end of the day.
Netherlands-based semiconductor manufacturer NXP Semi also beat and increased its first-quarter earnings report on Monday afternoon. This sparked a volatile post-market session where results were mostly supportive; semi-enterprise, like most semi-enterprises, has taken a dip year-to-date, -23%. But the company said demand from end markets remains very strong.
Clorox and MGM Resorts also beat earnings expectations yesterday afternoon, with one company selling the news and the other climbing late in the session. Expedia is also up in aftermarket following gross bookings up +58% year-on-year.
It’s been a busy week for Q1 earnings, the biggest of the entire season, in fact. Between that tonnage of reports and the Fed’s next move — not to mention new jobs reports to come — by the end of this week, we should have a clear picture of the first quarter and the near-term road ahead. .
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