Investing

Earnings Previews: Abercrombie, Li Auto, Nordstrom, Zscaler

Zscaler’s shares trade at 438 times expected 2021 EPS, 287 times estimated 2022 earnings and 178.8 times estimated 2023 earnings. The stock’s 52-week range is $69.83 to $230.88, and the average daily trading volume is 1.9 million shares. Zscaler does not pay a dividend.

Abercrombie & Fitch

Specialty retailer Abercrombie & Fitch Co. (NYSE: ANF) reports fiscal first-quarter results before Wednesday’s opening bell. After plunging by more than 50%, it managed to post a share price gain of almost 20% last year. The stock has soared by around 87% so far in 2021. Last week, the shares traded briefly at an eight-year high of nearly $43.

Analysts are, at best, cool to the stock. Nine of 16 brokerages rate the stock a Hold, while just two rate the shares at Strong Buy. The shares currently trade near $37.95, less than a dollar below the consensus price target of $38.89, implying upside potential of just 2.5%. At the high target of $50, upside potential is about 32%.

Consensus estimates call for the retailer to post a per-share loss of $0.38 in the quarter on sales of $687.35 million. For the 2022 fiscal year, current estimates call for EPS of $1.61 on sales of $3.53 billion.

The stock trades at around 23.6 times expected 2022 EPS and 20.4 times estimated 2023 earnings. The stock’s 52-week range is $9.30 to $43.60, and the average daily trading volume is around 1.5 million shares. The company does not pay a dividend.

Li Auto

Beijing-based Li Auto Inc. (NASDAQ: LI) also is scheduled to post quarterly results before markets open Wednesday. Following the July 2020 IPO, the stock traded up nearly 170% and closed out 2020 up about 75% over the IPO price. So far in 2021, the stock is down nearly 28%. The company’s SUV, the Ideal One, sold 5,539 units in China last month, good enough to rank fourth behind Wuling HongGuang’s Mini EV (29,251 units sold), Tesla’s Model 3 (6,264) and BYD’s Han EV (5,746). The Ideal One sold more units than Tesla’s Model Y (5,407). U.S. automaker GM’s China division owns a 44% stake in Wuling HongGuang.

As with virtually all other EV makers, analysts are heavily bullish on Li Auto’s stock, with 13 of 17 rating the stock a Buy or Strong Buy. At a price of around $20.80, the implied upside to a consensus price target of $36.50 is about 75%. At the high target of $59.98, the implied upside is a whopping 188%.

Li Auto is expected to post a loss of $0.02 per share in the first quarter on sales of $521.25 million. For the full 2021 fiscal year, the per-share loss is forecast to reach $0.08 on sales of $2.94 billion, more than double the company’s total in 2020.

The company is not expected to post a profit this year but, based on estimated EPS of $0.12 in fiscal 2022, the shares currently trade at a multiple of about 173. Li Auto does not pay a dividend. The average daily trading volume is nearly 14 million shares.