National Fuel Gas Company Rises as Financial Market Standout
For Immediate Release
Chicago, IL – April 29, 2025 – Zacks Equity Research identifies National Fuel Gas Company (NFG) as the Bull of the Day and Century Communities (CCS) as the Bear of the Day. Additionally, Zacks provides insights on Meta Platforms (META), Alphabet (GOOGL), and Amazon (AMZN).
Here is a summary of all five stocks.
Bull of the Day: National Fuel Gas Company
National Fuel Gas is a diversified energy firm with significant natural gas operations in the Appalachian Basin, focusing on the production and transportation of natural gas. The company also offers interstate transportation via an integrated gas pipeline system across Pennsylvania and New York, alongside maintaining underground natural gas storage fields.
Currently, the stock is demonstrating strength, hitting a series of 52-week highs this year. It has shown resilience amid recent market volatility, with increasing trading volume drawing attention from investors.
Ranked #1 (Strong Buy) by Zacks, National Fuel Gas is part of the Oil and Gas Integrated US industry group, which is in the top 32% of over 250 industries. This strong positioning suggests a favorable outlook for performance over the next three to six months.
Research indicates that nearly half of a stock’s price appreciation can be attributed to its industry sector. Additionally, the top 50% of Zacks Ranked Industries outperforms the lower half by more than two-to-one.
Company Overview
National Fuel Gas is involved in transporting and storing natural gas for utilities and industries and operates gathering facilities in the Appalachian region. The company also has a retail division that sells natural gas.
Recent strategic investments are expected to enhance operations while reducing greenhouse gas emissions. Ongoing modernization of pipelines will likely boost earnings further. Furthermore, NFG is well-positioned to exploit opportunities in data centers and artificial intelligence systems, catering to the rising demand for gas-fired power production.
The firm has prioritized shareholder returns, disbursing over $590 million to investors in the last three years. In March 2024, it approved a $200 million share repurchase program, aiming for completion in fiscal 2025, and has consistently increased its dividend rate over decades.
Earnings Trends and Future Estimates
National Fuel Gas has outperformed earnings estimates in three of the last four quarters. In its latest fiscal first-quarter results published in January, it reported earnings of $1.66 per share, exceeding expectations by 5.7%.
Over the trailing four quarters, the company has averaged an earnings surprise of 8.3%. Analysts have increased their fiscal second-quarter EPS estimates by 2.84% in the past two months. The current consensus for Q2 stands at $2.17 per share, indicating a growth of 21.2% from the previous year. Investors should be mindful of volatility surrounding the upcoming earnings announcement scheduled for Wednesday after market close.
Technical Outlook
This market leader has gained nearly 30% this year, while the broader market faced significant corrections. Such strong upward trends indicate that NFG is a stock worth considering for a robust portfolio, particularly given its strong performance metrics and upward revision in earnings estimates.
Throughout the past year, the stock has consistently achieved higher highs. With strong fundamentals coupled with positive technical indicators, NFG appears well-positioned for continued success.
Empirical research confirms a solid connection between stock price movements and trends in earnings estimate revisions. Considering NFG’s recent favorable revisions, the stock is likely to continue its positive trajectory as it maintains its streak of earnings beats.
Conclusion
With its solid industry standing and history of earnings surprises, NFG clearly presents a strong investment opportunity. Its solid fundamentals and positive technical trends make a compelling case for adding it to an investment portfolio.
NFG scores favorably on Zacks Style Scores, earning ‘B’ ratings in both Growth and Momentum categories. This suggests that shares are poised for upward movement based on a robust combination of earnings and sales trends paired with positive price performance.
The favorable earnings estimate revisions could also establish a safety net against sudden market declines. Those seeking solid investment options should consider adding NFG to their watchlist.
Bear of the Day: Century Communities
Century Communities designs, develops, constructs, and sells both attached and detached single-family homes.
Century Communities Faces Challenges Amid Deteriorating Financial Outlook
Century Communities engages in homebuilding, land development, and provides various services such as mortgage, title, and insurance to homebuyers. Headquartered in Greenwood Village, Colorado, the company was founded in 2002 and operates in 18 states, offering homes under the Century Communities and Century Complete brands.
Current Industry Position
The company is grappling with headwinds as earnings trends remain unfavorable. In the current environment of elevated interest rates, Century Communities struggles to adapt. Moreover, rising prices for building materials complicate the situation further.
Century Communities holds a Zacks Rank #5 (Strong Sell) and is part of the Zacks Building Products – Home Builders industry, which ranks in the bottom 16% out of approximately 250 Zacks Ranked Industries. This trend suggests the industry is expected to underperform the market over the next three to six months, mirroring its year-to-date performance.
Stock Performance and Market Sentiment
Stocks within poorly performing industries often present intriguing short opportunities. Although some individual stocks may outperform, the weak industry backdrop continues to challenge any potential rallies. Century Communities shares have notably underperformed over the past year, recording a series of lower lows, indicating a potentially lucrative short position as we approach 2025.
Recent Earnings Miss and Outlook
In its latest quarterly report, Century Communities fell short of earnings estimates. The company announced first-quarter earnings of $1.36 per share, missing the Zacks Consensus Estimate by 21.8%. Additionally, revenues of $903.2 million also failed to meet expectations; the company has surpassed sales estimates only once in the last four quarters.
This earnings miss signifies further troubles ahead, breaking its streak of earnings beats and putting CCS in a precarious position. Analysts have downgraded earnings estimates recently, cutting their projections for the current quarter by 13.92%. The Q2 Zacks Consensus EPS Estimate is now $2.04 per share, reflecting a negative year-over-year growth of 23.02%.
Technical Indicators
The CCS stock has recently exhibited a “death cross,” where the 50-day moving average falls below the 200-day moving average. An upward movement strong enough to warrant taking long positions would require significant market changes and better earnings estimates. So far, the stock has decreased nearly 26% this year alone.
Conclusion
Overall, deteriorating fundamentals and technical indicators suggest that this stock is unlikely to reach new highs soon. Being part of a poorly performing industry group compounds existing concerns. The recent earnings miss and declining future estimates likely create a ceiling on any potential rebounds, sustaining the downtrend of CCS.
Furthermore, Century Communities is likely to face ongoing uncertainties in the U.S. housing market, fueled by consumer affordability issues and persistent inflationary pressures. Potential investors may consider avoiding this stock or incorporate it as part of a short-selling strategy. Cautious investors should be wary until significant improvements materialize.
Additional Updates
Preview of Meta Platforms’ Q1 Earnings
Meta Platforms is anticipated to report its first-quarter 2025 results on April 30. Expected total revenues range between $39.5 billion and $41.8 billion, suggesting year-over-year growth of 8-15%. The Zacks Consensus for first-quarter revenue stands at $41.22 billion, indicating an increase of 13.08% compared to last year.
The consensus for earnings is pegged at $5.21 per share, a minor decline over the past month but indicating a growth of 10.62% from the previous year.
Meta has exceeded earnings expectations in all four recent quarters with an average surprise of 13.77%. This evolving trend will be closely watched in the upcoming report.
Advertising Revenue Projections for Meta
Meta is poised to benefit from robust advertising revenue growth. Its platforms — WhatsApp, Instagram, Messenger, and Facebook — reach over three billion users daily, leveraging the company’s growing strength in AI and digital advertising. The expectation for first-quarter 2025 advertising revenues is currently set at $40.44 billion, suggesting a year-over-year growth of 13.5%.
Meta Platforms’ Ad Growth and Challenges in Q1 2024
In the fourth quarter of 2024, Meta Platforms (META) reported a **6% year-over-year increase in ad impressions**. This positions META alongside major players like Alphabet and Amazon in the digital ad sales market. By 2028, these three companies are expected to capture approximately **50% of global ad spending**.
META is actively employing artificial intelligence (AI) and machine learning to enhance its services across platforms such as WhatsApp, Instagram, Facebook, and Threads. The effective use of AI, particularly in feed recommendations, has proven critical in maintaining user engagement.
Financial Pressure and Operating Income
Despite growth in ad performance, META faces escalating expenses related to advancements in AI technologies, which are anticipated to pressure profit margins. The Reality Labs division, known for incurring losses, may impact META’s first-quarter outcomes. According to the Zacks Consensus Estimate, the operating income for the Family of Apps is forecasted at **$19.97 billion**, reflecting **13% growth** from the previous year. In contrast, the estimated loss for Reality Labs is **$4.70 billion**, exceeding last year’s loss of **$3.85 billion**.
Stock Performance Overview
META’s shares have decreased **6.6% year-to-date**, outperforming the Zacks Computer & Technology sector’s decline of **11%** and trailing the Zacks Internet Software Industry’s **5.9% drop**. Compared to the “Magnificent 7” tech peers—comprising Microsoft, Amazon, Alphabet, Apple, NVIDIA, and Tesla—META shares have been relatively stable. Year-to-date, these competitors have experienced declines of **7.1%**, **13.9%**, **14.5%**, **16.5%**, **17.4%**, and **29.5%**, respectively.
Currently, META’s share valuation is under scrutiny, with a Value Score of C indicating the stock may be overpriced. The company is trading at a forward **Price/Sales ratio of 7.23X**, above the sector average of **5.59X**.
AI’s Role in META’s Strategy
Meta’s substantial data collection, powered by over **3.35 billion daily users**, significantly enhances its AI capabilities. AI is being utilized to make recommendations that attract younger audiences, thus boosting competitive advantage. Advertisers are drawn to META’s efforts to maximize their return on ad spending. The company employs its proprietary machine learning system, Andromeda, to increase the effectiveness of its advertising by delivering personalized ads.
Leveraging the NVIDIA Grace Hopper Superchip, META’s deep neural networks have improved recall by **over 6%** and ad quality by more than **8%** in targeted segments. Tools like Advantage+ facilitate campaign management, increasing ad effectiveness through better audience targeting.
With over **700 million monthly active users interacting with Meta AI**, the company continues to enhance its systems. Future updates are expected to deliver more relevant and personalized experiences, thereby further encouraging user engagement.
Investment Outlook: Hold Ahead of Results
While the integration of AI paints a positive picture for META’s short- and long-term growth, valuation concerns and regulatory challenges loom. The current Zacks Rank #3 (Hold) suggests investors should consider a waiting strategy for acquiring META shares.
