Chicago, IL – March 11, 2025 – Zacks Equity Research shares Opera Ltd. OPRA as the Bull of the Day and TopBuild BLD as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Taiwan Semiconductor Manufacturing Co. Ltd. TSM, NVIDIA Corp. NVDA and RF Industries, Ltd. RFIL.
Here is a synopsis of all five stocks:
Opera Ltd.is a Zacks Rank #1 (Strong Buy) that has a C for Value and a D for Growth. The company makes the Opera web browser and AI driven content. The company has beaten the Zacks Consensus Estimate in three of the last four quarters and has come in recent highs. Let's explore more about why this stock is the Bull of the Day.
Opera Ltd. engages in the provision of web browsers through its subsidiaries. Its products include Opera browser for Windows, iOS, and Linux computers, as well as the mobile apps Opera for Android, Opera Mini, Opera Touch, and Opera News.
The company operates through the Browser and News; and Other segments. The Browser and News segment includes PC and mobile browsers, gaming portals and game development tools, News content recommendation products, and audience extension allowing advertisers to take advantage of advertising network on third party inventories. The Other segment comprises of licensing of proprietary technology to third parties and provisions of related maintenance, support and hosting services, provision of professional services, and provision of customized browser configurations to mobile operators. Opera was founded in 1995 and is headquartered in Oslo, Norway.
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.
Opera Ltd.has a good earnings history with the company topping the Zacks Consensus Estimate in three of the last four quarters.
The most recent earnings print saw the company post EPS of 32 cents when the consensus was at 23 cents. That 9 cent beat translates into a positive earnings surprise of 39.1%
Over the last four quarters the average earnings surprise works out to be 17.2%.
Earnings estimate revisions is what the Zacks Rank is all about.
Estimates are moving higher for Opera Ltd.
Following the recent beat, the estimates for this quarter moved up to $0.26 from $0.21 over the last 30 days.
Next quarter it has increased from $0.23 to $0.29 over the same period.
The full year 2025 estimate is up from $0.95 to $1.25.
Next year jumped from $1.27 to $1.61.
I see revenue in 2025 will come in around $568M which will end up being growth of about 18.2%.
2026 is calling for sales of $656M which represents 15.6% growth.
The forward PE stands at 14x which is rather low given the steady growth. The price to book multiple is 1.67x and value investors are always looking for stocks with a P/B multiple of less than 3x. Price to sales at 3.26x is where you would expect it to be for a company like this.
Alphabet is the parent company of Google and there has been some talk of breaking the company up. This would be a very good development for Opera as the managers of the search business would likely get more aggressive and pay more for the traffic that OPRA sends to search engines.
TopBuild is a Zacks Rank #5 (Strong Sell) after the company beat the Zacks Consensus Estimate when the last reported. The company is in the building products space and has faced a lot of pressure over the last few years from high interest rates and high inflation. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.
GSK Plc is a healthcare company, which engages in the research, development, and manufacture of pharmaceutical medicines, vaccines, and consumer healthcare products. It operates through the Commercial Operations, and Research and Development segments. The Commercial Operations segment has three product groups of specialty medicines, vaccines, and general medicines. The company was founded in 1715 and is headquartered in Middlesex, the United Kingdom.
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.
In the case of GSK PLC, I see three beats and one miss of the Zacks Consensus Estimate over the last year. The most recent quarter was a beat with the company posting $1.27 when the consensus was calling for $1.16. 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.
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For GSK I see annual estimates moving lower of late.
The current fiscal year consensus number moved lower from $4.05 to $3.92 over the last 60 days.
The next year has moved from $4.24 to $4.07 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).
The semiconductor industry played a major role in last year's stock market rally. After experiencing a slowdown, demand for semiconductors began recovering in 2024 and has been steadily increasing. A sharp rise in sales was largely fueled by growing enthusiasm for artificial intelligence (AI), particularly generative AI.
However, investor confidence has been shaken, leading to a decline in semiconductor stocks over the past month. This downturn followed the emergence of DeepSeek, a low-cost AI model from China, which initially raised concerns about its potential to challenge the dominance of U.S. tech giants in the AI space. Despite initial fears, the worries have gradually subsided, restoring a sense of optimism in the market.
Given this scenario, it would be ideal to invest in semiconductor stocks such as Taiwan Semiconductor Manufacturing Co. Ltd., NVIDIA Corp. and RF Industries, Ltd.. Each of these stocks carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
The Semiconductor Industry Association (SIA) reported last week that global semiconductor sales reached $56.5 billion in January, a robust 17.9% jump from $47.9 billion in January 2024.
However, on a month-over-month basis, sales dipped by 1.7% in January. This minor decline was largely driven by uncertainty surrounding the future of U.S. tech companies in the AI sector after the highly publicized debut of the more affordable Chinese competitor, DeepSeek. Despite this drop, January still set a record for the highest-ever sales total for the month.
These January figures come after a strong performance in 2024 when global semiconductor sales soared to $627.6 billion, increasing 19.1% from $526.8 billion. The fourth quarter alone saw a solid 17.1% year-over-year jump, totaling $170.9 billion, along with a 3% sequential increase.
The increasing demand for semiconductors in data centers has been a key driver of global sales. Additionally, the memory market has played a major role in this surge, with revenues skyrocketing by 71.8% last year from 2023.
Several tech firms have been making hefty investments in AI development, and businesses incorporating AI into their products have seen impressive expansion in recent years. Experts remain optimistic about AI's vast untapped possibilities and expect continued growth in demand as more semiconductor companies venture into the AI space. The SIA forecasts double-digit sales growth in 2025, reinforcing confidence in the industry's upward trajectory.
Taiwan Semiconductor Manufacturing Company Limited
Taiwan Semiconductor Manufacturing Company Limited is the world's largest dedicated integrated circuit foundry. As a foundry, TSM manufactures ICs for its customers based on their proprietary IC designs using its advanced production processes. Taiwan Semiconductor Manufacturing Company Limited's goal is to establish itself as one of the world's leading semiconductor companies by building upon the strengths that have made it the world's leading IC foundry.
Taiwan Semiconductor Manufacturing Company Limited's expected earnings growth rate for the current year is 30.7%. The Zacks Consensus Estimate for current-year earnings has improved 4% over the past 90 days. TSM presently carries a Zacks Rank #2.
NVIDIA Corporation
NVIDIA Corporationis a major player in the semiconductor industry and has been one of the standout success stories of 2023 and 2024. As a leading designer of graphic processing units (GPUs), the value of the NVDA stock tends to surge in a thriving crypto market. This is primarily due to the crucial role that GPUs play in data centers, artificial intelligence and the mining or production of cryptocurrencies.
NVIDIA's expected earnings growth rate for the current year is 46.8%. The Zacks Consensus Estimate for current-year earnings has improved 5.3% over the past 90 days. Currently, NVIDIA has a Zacks Rank #2.
RF Industries, Ltd.
RF Industries, Ltd. is engaged in the design, manufacture and distribution of coaxial connectors used in radio communications applications as well as in computers, test instruments, PC LANS and antenna devices.
RF Industries' expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 40% over the past 90 days. RFIL presently carries a Zacks Rank #2.
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