Prairie Operating and Equifax have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – March 26, 2025 – Zacks Equity Research shares Prairie Operating Co. PROP as the Bull of the Day and Equifax EFX as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Shopify SHOP and PayPal PYPL.Here is a synopsis of all four stocks:Bull of the Day:Investors rarely get the chance to invest in a company right before a game-changing transformation, but that's exactly what's happening with Prairie Operating Co. Zacks Rank #1 (Strong Buy). With oil prices firming up and Prairie's landmark acquisition of Bayswater, the company is set to increase daily production nearly tenfold, creating one of the most compelling growth opportunities in the energy sector today.Beyond the operational upside, Prairie'ssmart financing structure minimized dilution to common shareholders, making this an even more attractive investment at current levels. Adding to the bullish case, Prairie is expected to receive potential institutional research coverage from up to nine banks that were on the financing syndicate imminently, a rare opportunity for retail investors to get ahead of Wall Street.And if that weren't enough, an outsized short position in the stock sets the stage for a potential explosive short squeeze, further enhancing the upside potential.A Game-Changing Acquisition: 10x Production GrowthPrairie's acquisition of Bayswater's DJ Basin assets is a transformational event that will reshape the company's production profile. The acquisition adds approximately 24,000 net acres in Weld County and boosts Prairie's production from a modest 2,500 barrels of oil equivalent per day (BOEPD) to an estimated 27,500 BOEPD—a near 10x increase.This massive jump in production not only accelerates revenue growth but also positions Prairie as a key operator in the DJ Basin, a highly productive oil and gas region.A Financing Masterstroke: Raising Capital Through Minimal DilutionPrairie was initially expected to raise $200 million through a secondary offering, which would have significantly diluted existing shareholders. Instead, managementdownsized the common stock offering to just under $40 million while incorporating a new series of preferred stock to raise the remaining capital.This strategy dramatically minimized dilution, allowing current shareholders to benefit more fully from the company's meteoric production growth and rising earnings potential.Institutional Research Coverage Imminent: A Rare Advantage for Retail InvestorsOne of the most exciting aspects of investing in Prairie right now is that institutional research coverage is expected soon from the banking syndicate involved in the financing, which includes potentially nine marquee firms from the banking syndicate (Citigroup, KeyBanc, Truist, Piper Sandler, Roth, Johnson Rice & Company and Pickering Energy Partners.)For retail investors, this presents a rare opportunity, typically, institutional coverage boosts visibility, attracts large funds, and catalyzes stock appreciation. Investors who buy in now are getting ahead of this wave before Wall Street analysts start formally covering the stock.The Hidden Catalyst: A Short Squeeze SetupIn addition to its fundamental strengths, Prairie presents a compelling short squeeze opportunity.·         Prior to the announcement of its transformational Bayswater acquisition, Prairie had roughly 300,000 shares short at any given time.·         However, after the first equity offering was announced, short interest exploded to over 1.6 million shares—more than five times the previous level.·         This figure does not include any shares that may have been sold short naked or fractionally, which could push the real short position even higher.·         At current trading volumes, it would take almost six days for short sellers to fully cover their positions—a setup primed for a squeeze.The short thesis was based on expectations of a large, dilutive equity offering or a failed deal, neither of which materialized. Instead, the company executed a shareholder-friendly financing strategy to fund the acquisition, leaving an outsized number of shares short that will eventually need to cover.If you recall, back in February, Prairie experienced a mini short squeeze in after-hours trading, surging from $7.50 to nearly $10 on just 150,000 shares traded.Now, imagine what could happen if all 1.6 million shares shorted are forced to cover. The buying pressure could send the stock soaring, creating a massive opportunity for investors positioned ahead of the squeeze.Earnings Estimates SkyrocketingWith first oil production from the Shelduck project beginning in Q1 2025, earnings estimates for Prairie have exploded higher according to the current research report:·         Q1 2025 EPS estimates jumped from $0.32 to $1.18 in just 60 days.·         Full-year 2025 EPS estimates surged from $2.44 to $4.78, signaling massive, expected profitability.Revenue Growth: A Staggering 8,642% IncreasePrairie's revenue in 2024 was a modest $8 million, but thanks to its dramatically expanded production base, Singular Research's analyst now project 2025 revenue of approximately $694 million—an 8,642% year-over-year increase.Valuation: Deeply Undervalued Relative to PeersDespite its explosive growth, Prairie remains massively undervalued:·         The stock trades at a forward P/E ratio of just 1.23x—a fraction of the 11x industry average.·         The price-to-book ratio is 2.55x, well below the 6x industry average.Given the upcoming surge in production and earnings, Prairie deserves a substantial re-rating, and its valuation should converge toward industry norms—which could mean a multi-fold increase in share price.ConclusionWith oil prices strengthening, Prairie is executing one of the most compelling growth stories in the energy sector today. The company has secured a game-changing acquisition, structured a shareholder-friendly financing deal, and is on the verge of institutional research coverage—all while trading at a deep discount to its true value.And with 1.6 million shares short and a clear catalyst for a squeeze, Prairie could see explosive upside in the near term.For investors looking for significant upside potential,Prairie Operating Co. offers a rare, asymmetric opportunity to buy before the market fully realizes the scale of this transformation.Bear of the Day:Equifax is a Zacks Rank #5 (Strong Sell) after the company beat the Zacks Consensus Estimate when the company last reported. Equifax is in the consulting services space and has faced a lot of pressure over the last year. This article will look at why this stock is a Zacks Rank #5 (Strong Sell) as it is the Bear of the Day.DescriptionEquifax, Inc. engages in the provision of information solutions and human resources business process outsourcing services. It operates through the following business segments: U.S. Information Solutions, Workforce Solutions and International. The U.S. Information Solutions segment includes consumer and commercial information services, mortgage loan origination information, financial marketing services, and identity management. The Workforce Solutions segment covers employment, income, and social security number verification services as well as complementary payroll-based transaction and employment tax management services. The International segment offers information, technology, and services to support debt collections and recovery management in Canada, Europe, Latin America and Asia Pacific. The company was founded by Cator Woolford and Guy Woolford in 1899 and is headquartered in Atlanta, GA.Earnings HistoryWhen 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 Equifax, I see four straight beats of the Zacks Consensus Estimate over the last year. The most recent quarter was a beat with the company posting $2.12 when the consensus was calling for $2.10. 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.Earnings EstimatesThe Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For EFX I see annual estimates moving lower of late.The current fiscal year consensus number moved lower from $8.70 to $7.69 over the last 60 days.The next year has moved from $10.82 to $9.51 over the last 30 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).Additional content:SHOP Trades -15% Below 52-Week High: Buy the Shares on Pullback?Shopify shares have dropped 15.4% since hitting a 52-week high on Feb. 18. The pullback can be attributed to increasing macroeconomic challenges driven by U.S. President Donald Trump's decision to levy on top trading partners, including China, Mexico and Canada, which has increased the chances of a trade war. However, indications that reciprocal tariffs, set to be announced on April 2, would be more narrowly targeted helped SHOP shares surge 4.87% to close at $109.28 on Monday.Does the pullback offer a buying opportunity? Shopify is significantly overvalued, as suggested by a Value Score of F. In terms of the 12-month Price/Sales, SHOP is currently trading at 12.46X, compared with the broader sector's 5.88X.Stiff competition has been a headwind. Shopify plans to shift to a three-month paid trial in certain markets compared with its previous one-month paid trial practice to boost merchant durability and retention. This negatively impacted fourth-quarter MRR growth and is expected to hurt the first-quarter 2025 and second-quarter 2025 MRR's.Shopify plans to invest more in core platforms, international and B2B enterprise and offline, which is expected to hurt free cash flow margins in the near term.So, how should investors approach SHOP shares? Let's find out.Expanding Merchant Base Bodes Well for SHOP's ProspectsShopify has been benefiting from robust growth in its merchant base, driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. These innovative offerings are enabling Shopify to attract new merchants, even amid challenging economic conditions. This has helped SHOP shares outperform the Zacks Computer & Technology and the Zacks Internet Services industry year to date. While SHOP shares appreciated 39.1%, the sector and industry increased 9.8% and 10.6%, respectively.Shopify's latest updates have introduced more than 150 new features to its platform, enhancing merchants' businesses and making operations smoother and more efficient. These updates are empowering merchants on the SHOP platform with innovative tools to streamline operations and grow their businesses.Companies and brands like Reebok, Champion, Westwing and BarkBox are now available on Shopify. The company is expanding its footprint across verticals, including apparel and accessories, as well as health and beauty. SHOP is expanding in Europe with the addition of brands like Karl Lagerfeld and FC Barcelona.Shop Pay is benefiting from strong adoption. Shop Pay app is benefiting from a more personalized and fresh shopping feed, new curated shopping events and category browsing and the launch of cart syncing.Shopify plans to increase its AI capabilities, which will help not only new merchants launch but also help larger merchants scale faster and drive productivity. SHOP plans to continue expanding its reach across various merchant sizes, including entrepreneurs and enterprises and strengthen its footprint across Europe and countries like Japan.Rich Partner Base Aids SHOP's ProspectsSHOP continues to benefit through its partnerships with prominent names like TikTok, Instagram, Target, PayPal, Roblox, Alphabet, Manhattan Associates, Oracle, COACH and Adyen.Through its expanded partnership with PayPal, SHOP is diversifying its Payments product offerings. With Alphabet's YouTube, SHOP has provided its merchants with a powerful sales channel, leveraging YouTube creators to tap into its massive global audience.In its commerce integration partnership with Roblox, Shopify has opened newer avenues for merchants to reach a younger and more engaged audience.SHOP's 2025 Earnings Estimates Revisions are SteadyThe Zacks Consensus Estimate for SHOP's 2025 earnings is currently pegged at $1.49 per share, unchanged over the past 30 days and indicating year-over-year growth of 14.62%.The consensus mark for SHOP's 2025 revenues is currently pegged at $10.86 billion, indicating year-over-year growth of 22.3%.SHOP beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average surprise being 22.08%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.ConclusionSHOP is benefiting from strong growth in its merchant base and expanding footprint. Its focus on improving its client base is a key catalyst. Hence, investors who already own the stock may expect the company's growth prospects to be rewarding over the long term.However, challenging macroeconomic conditions and a cautious spending environment are headwinds along with a stretched valuation.Shopify currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a more favorable time to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Media ContactZacks Investment Research800-767-3771 ext. 9339https://www.zacks.comZacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. 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These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Equifax, Inc. (EFX): Free Stock Analysis Report PayPal Holdings, Inc. (PYPL): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report Prairie Operating Co. (PROP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks