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Etsy, Yamana Gold, HSBC Holdings, ING Group and Reckitt Benckiser highlighted as Zacks Bull and Bear of the Day

For Immediate Release

Chicago, IL – July 11, 2017 –Zacks Equity Research Etsy, Inc. (NASDAQ: ETSY Free Report ) as the Bull of the Day, Yamana Gold Inc. (NYSE: AUY Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on HSBC Holdings (NYSE: HSBC Free Report ), ING Group N.V. (NYSE: ING Free Report ) and Reckitt Benckiser (OTCMKTS: RBGLY Free Report ).

Here is a synopsis of all five stocks:

Bull of the Day :

Etsy, Inc. (NASDAQ:ETSY Free Report ) is attempting to become profitable for the first time since its IPO in 2015. This Zacks Rank #1 (Strong Buy) is expected to grow sales and earnings by the double digits in 2018.

Etsy is the online market place where people make, sell and buy unique goods. Founded in 2005, it is headquartered in Brooklyn and went IPO in 2015.

Revenue Rises Double Digits in the First Quarter

On May 2, Etsy reported first quarter results and met the Zacks Consensus Estimate of $0.00.

But while investors have been focused on the lack of earnings growth, sales continue to climb.

Revenue was up 18.4% to $96.9 million driven by growth in both Markets and Sellers Services. Markets revenue was up 14.1% due to growth in transaction fee revenue while Seller Services jumped 23.9% year-over-year due to revenue growth in Etsy Payments.

In the quarter, it launched Etsy Studio, it's first new market since 2005. It is trying to target the craft supplies market and believes it can have an edge in that category.

For the year, sales are expected to grow 19% with another 17.7% in 2018.

Bear of the Day :

Yamana Gold Inc. (NYSE:AUY Free Report ) has been riding higher gold prices to bigger profit. This Zacks Rank #5 (Strong Sell), however, isn't expected to see as great a 2017 as originally hoped.

Yamana produces gold, silver and copper from its six producing mines in Canada, Brazil, Chile and Argentina. Gold, however, is its primary focus.

Do Earnings Matter for Commodities Companies?

On May 3, Yamana reported its first quarter 2017 results and missed the Zacks Consensus by 3 cents. Earnings were a loss of $0.01 versus the consensus of $0.02.

It has missed four quarters in a row.

But with miners it's really about what they're getting out of the ground.

In the quarter, it saw total gold production of 257,533 ounces, silver production of 1.08 million ounces and copper production of 26.5 million pounds.

Raised Full Year Production

The good news was that it raised full year production to 940,000 ounces of gold from its original guidance of 920,000 ounces of gold.

In early 2018, it will be producing from 7 mines, instead of 6, when production starts at Cerro Moro.

Earnings Estimates on the Decline

Because there are so many moving parts with miners, including labor costs and fluctuations in the price of the commodity, the earnings estimates can be volatile.

Two estimates have been lowered for 2017 over the last 60 days. This has pushed the Zacks Consensus Estimate down to $0.07 from $0.13 just 90 days ago.

These cuts are why you see the Zacks Rank of #5 (Strong Sell).

Additional content:

Running of the Bulls: Global Week Ahead

In the Global Week Ahead, the second quarter (Q2) earnings season kicks into a higher gear.

So far, a strong reporting season is shaping up. The bulls are running. The bears are left feeling a little hungry these days.

As of Friday, July 7th, 5% of S&P 500 companies had reported results for Q2. 78% of the 25 reporting beat their mean EPS estimate. For comparison, the 5-year average is 68%. Add to that. 87% beat their mean sales estimate.

For Q2 2017, the overall S&P 500 blended earnings growth rate rests at +6.5%. Going into Q1, estimated EPS growth was +9.0%. That quarter ended at +14.0%.

While the second quarter estimate is lower, it still should be a strong quarter, and the 4th quarter in a row that shows positive earnings momentum. Remember the ‘Earnings Recession’? That saga ended in the second half of 2016.

The bears can focus on retailers! Utilities and Consumer Discretionary hold the negatives. The remaining nine of eleven S&P 500 sectors expect earnings growth, led by the Energy sector.

What of current S&P 500 valuations? The forward 12-month P/E ratio for the S&P 500 is 17.3. This P/E ratio is above the 5-year average (15.3) and the 10-year average (14.0). That shows a source of sincere concern. Momentum has carried this stock market far, but can it reverse easily? Yes. It can. Tech just showed us how.

To finish this earnings season review off, covering stock strategists are staying bullish. The bottom-up S&P 500 price target in 12 months’ time sits at 2,650.

On Friday July 14th, the major U.S. financial groups begin reporting before the market opens (BMO). This includes JP Morgan Chase (Zacks #3 Rank), Citigroup (Zacks #3 Rank), Wells Fargo (Zacks #3 Rank) and PNC Financial (Zacks #3 Rank).

Rate hikes can be a bearish catalyst. Away from Q2 earnings season, there are two Fed governor speeches to note.

On Tuesday, Governor Brainard speaks on normalizing central banks’ balance sheets. On Wednesday, and Thursday, Chair Yellen’s testimony to both chambers of Congress could carry surprises.

Next Thursday, a pair of central bank policy decisions will focus on Latin America. From a 4.0% policy rate, Peru may ease 25 basis points. In Chile, the policy rate sits at a lower 2.5%. No change is expected there.

In Asia, the week also offers a monetary policy decision out of South Korea and Malaysia.

Top Zacks #1 Rank (STRONG BUY) Stocks—

HSBC Holdings
(NYSE:HSBC Free Report ): This $188B market cap U.K. global bank holding company is looking good. But the long-term Zacks VGM score is F.

ING Group N.V. (NYSE:ING Free Report ): This $69B in market cap Dutch banking conglomerate is looking good, too. Again, the Long-term Zacks VGM score is F. That means the good news is all priced in on big banks in Europe.

Reckitt Benckiser (OTCMKTS:RBGLY Free Report ): This $70B market cap Soaps and Cleaning Materials stock is worth a look. The Zacks VGM score is C.

Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:

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.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

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Etsy, Inc. (ETSY): Free Stock Analysis Report
 
Yamana Gold Inc. (AUY): Free Stock Analysis Report
 
HSBC Holdings PLC (HSBC): Free Stock Analysis Report
 
ING Group, N.V. (ING): Free Stock Analysis Report
 
Reckitt Benckiser Group PLC (RBGLY): Free Stock Analysis Report
 
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