Vistra and Nike have been highlighted as Zacks Bull and Bear of the Day

For Immediate ReleaseChicago, IL – January 13, 2025 – Zacks Equity Research shares Vistra VST as the Bull of the Day and Nike NKE as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Suncor Energy SU, Canadian Natural Resources CNQ and Imperial Oil Ltd. IMO.Here is a synopsis of all five stocks.Bull of the Day:Zacks Rank #1 (Strong Buy) stock Vistra is an integrated energy company based in the United States that supplies electricity and energy-related products to residential, commercial, and industrial customers. The company owns a diversified portfolio of power generation assets, including natural gas, coal, nuclear, solar, and wind energy. VST is committed to supplying power sustainably and cleanly and has made substantial investments in renewable energy and battery storage projects. In addition to its commercial business, Vistra offers retail electricity plans and services under its various brands.Data Center Growth is Set to ExplodeWith the launch of OpenAI and Microsoft’sChatGPT and Alphabet’s Gemini large language models, 2024 was the year where artificial intelligence became mainstream. Cash-rich mega-cap tech stocks like Meta Platformsare spending billions of dollars on NvidiaGPUs and data centers in what is becoming an AI “Gold Rush.”However, data centers require a plethora of electric power. Recall that the Electricity Reliability Council of Texas (EROC) was forced to pay bitcoin miner Riot Platforms more than $30 million to limit its electricity use during a heat wave late last year. In other words, the US electric grid is already at its limit. Meanwhile, data center energy demand is set to soar by triple digits by 2030 (according to the International Energy Agency (IEA).VST: Explosive Top and Bottom-Line GrowthUtility juggernauts like VST are filling the void, and it’s showing up in their fundamentals. VST is one of the best growth stories on Wall Street, growing quarterly EPS by 326% year-over-year last quarter. Over the next two quarters, Zacks Consensus Estimates suggest that the growth will only accelerate.Relative Price StrengthThe technical action in VST mirrors its fundamental momentum. VST shares are up a breathtaking 329% over the past year, drastically outperforming the S&P 500 Index’s 25%. Meanwhile, VST shows relative strength on shorter time frames.Friday, while the tech stocks were getting hammered, VST bucked the market weakness and gained nearly 4% as volume swelled to 75% above the norm.Bottom LineVistra is capitalizing on the surging demand for energy driven by the rapid expansion of data centers and the mainstream adoption of AI technologies. With a diversified portfolio that includes renewable energy investments and a commitment to sustainable power, Vistra has positioned itself as a key player in addressing the growing electricity needs.Bear of the Day:Incorporated in 1967 and known for its clever marketing, Zacks Rank #5 (Strong Sell) stock Nike is the leader in athletic footwear, apparel, equipment, and accessories for men, women, and children worldwide. Underneath the Nike umbrella, there are several iconic brands, such as Air Jordan, Nike Pro, and Nike Golf. Though the company is US-based it has operations in over 160 countries, and its Nike “swoosh” logo and “just do it” tagline are widely recognized everywhere.NKE EPS Growth is PlummetingThough Nike is the behemoth in the athletic apparel industry, savvy investors understand that the stock market is a forward-looking instrument. In other words, Wall Street doesn’t care that a company owns a large portion of a market but instead focuses on whether it will own a larger slice of the pie moving forward. This universal truth is negative news for Nike as Zacks Consensus Estimates suggest that NKE EPS growth will slide nearly 50% in 2025 (after an already weak 2024).Though earnings have been weak, and its valuation is “cheap,” three critical risks still loom ahead for the stock, including:1. China: A Major Uncertainty for NikeWhile Nike is a diverse, international brand, China plays a significant role in the company’s future for two reasons: manufacturing and sales.· Manufacturing: Nike conducts most of its manufacturing operations in Asian nations like Vietnam, Indonesia, and China to take advantage of lower wages. Roughly 36% of Nike shoes are manufactured in China. Tensions between the US and China could throw a wrench in Nike’s business. With US President-Elect Donald Trump vowing to levy tariffs on China and take back essential trade routes like the Panama Canal from Chinese hands, Nike’s heavy dependence on Chinese manufacturing poses a significant geopolitical risk. Should tensions escalate further, Nike could face higher costs and potential manufacturing disruptions.· Weak Economy: Roughly 15% of Nike’s sales come from China and the Asia Pacific. The Chinese economy has been floundering for years with no signs of turning any time soon. In fact, the Chinese stock market has been unable to trend higher despite sweeping economic stimulus. A weak Chinese economy will translate into a weak consumer.2. Nike’s Direct-to-Consumer Focus: Competition Fills the VoidDuring the pandemic, Nike shifted its game plan to reduce its retail presence in exchange for a DTC approach. While the strategy worked well during the unique time to slash costs and improve margins, it has backfired. Though the Nike retail business has a lower margin than its DTC business, Nike gave up a vast amount of visibility and free marketing by making the switch. Worse off, On Holding’s “On Cloud” shoes and Deckers Outdoor“Hoka” shoes have become wildly popular with active consumers and are taking up more shelf space in popular athletic retail stores like Dick’s Sporting Goodsand Foot Locker.A comparison chart between NKE and its competitors tells the story:3. New Management TeamIn October, Nike announced that longtime employee Elliott Hill would replace outgoing CEO John Donahoe. Typically, new management teams take time to implement new strategies, and Hill will face an uphill battle reversing the failed DTC focus that the competition has taken advantage of.Bottom LineThough Nike’s global brand recognition and market dominance remain strong, the company faces significant headwinds that could impact its future growth. From geopolitical risks to its direct-to-consumer strategy, Nike’s path forward is uncertain.Additional content:Is Trudeau's Exit a Turning Point for Canada's Energy Sector?Justin Trudeau's resignation as Prime Minister of Canada marks the end of a turbulent chapter for the nation's Oil – Energy sector. His tenure, spanning nearly a decade, saw moments of collaboration and confrontation, leaving a mixed legacy. Trudeau's exit has sparked optimism among energy investors, yet uncertainty looms as the industry navigates this leadership transition.Some notable Canadian firms that could be impacted by the leadership change and proposed regulatory shifts are Suncor Energy, Canadian Natural Resources and Imperial Oil Ltd. These companies, central to Canada's energy landscape, stand to gain from any easing of regulatory burdens but also face risks tied to evolving environmental policies and market dynamics. Their performance in the coming months will likely reflect broader industry sentiment and policy adjustments.Trudeau’s Tenure: A Mixed LegacyTrudeau began his leadership with promises of balancing environmental stewardship with economic growth. His 2017 declaration that “no country would find 173 billion barrels of oil in the ground and just leave them there” resonated with energy executives. However, subsequent actions, such as canceling the Northern Gateway project and banning oil tanker traffic off British Columbia’s northern coast, alienated Alberta’s oil producers.Despite industry discontent, Trudeau's government made significant investments in the sector. The $4.5 billion purchase of the Trans Mountain pipeline was a bold move, ensuring the project's completion amid political resistance. The expansion tripled the pipeline’s capacity, enabling Canada to boost oil exports to the United States and Asia. However, cost overruns and delays tarnished this achievement.Trudeau's climate policies further strained relations with the oilpatch. Measures like the emissions cap and carbon tax were viewed as restrictive, with critics arguing they hindered Canada’s competitiveness. Yet, these initiatives laid the groundwork for long-term sustainability, exemplified by the Pathways Alliance carbon capture project, which aims to decarbonize oilsands production.Market Reactions and Immediate ImpactTrudeau’s resignation was met with relief in the oilpatch, reflected in rising energy stocks. Industry leaders view his departure as an opportunity for a policy reset, with the potential to prioritize growth and competitiveness.However, uncertainty remains. Key projects like the $16.5 billion Pathways Alliance carbon capture initiative face an unclear future. Analysts warn that without federal incentives, such decarbonization efforts could stall, especially under a potential Conservative government less inclined to support aggressive climate policies.Challenges and Opportunities AheadTrudeau’s departure opens the door for a new federal leader, with the next election set for October 2025. The energy sector hopes for reduced regulatory burdens and expedited project approvals. This is expected to boost oil and gas infrastructure, which could usher in a more favorable era for the industry.However, challenges persist. The potential imposition of U.S. tariffs on Canadian oil under President-elect Donald Trump could disrupt trade, threatening Canada’s energy exports. Additionally, global energy markets are shifting, with demand for fossil fuels expected to peak within the next decade.Despite these headwinds, Canada's oil industry has reasons for optimism. Projects like LNG Canada, set to commence operations in 2025, and increased exports facilitated by the Trans Mountain expansion position Canada as a key player in global energy markets.Companies That Could be AffectedSuncor Energy: Founded in 1917, Alberta-based Suncor Energy is Canada's premier integrated energy company. The Zacks Rank #3 (Hold) company’s operations include oil sands development and upgrading, conventional and offshore crude oil and gas production, petroleum refining and product marketing. SU is one of the largest owners of oil sands in the world. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Canadian Natural Resources: Established in 1973, Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The #3 Ranked company boasts a diversified portfolio of crude oil (heavy as well as light), natural gas, bitumen and synthetic crude oil.Imperial Oil: Founded in 1880, Imperial Oil Limited is one of the largest integrated oil companies in Canada, mainly engaged in oil and gas production, petroleum products refining and marketing and chemical business. The Zacks Rank #1 company is Canada’s largest jet fuel supplier and a major producer of asphalt.ConclusionFor the oilpatch, the next steps are crucial. Increased collaboration between federal and provincial governments, streamlined regulatory processes and investment in clean technologies could pave the way for a resilient and competitive energy sector. While Trudeau’s resignation marks the end of an era, it also heralds the possibility of a new chapter—one where Canada’s oil and gas industry can thrive amid global and domestic challenges.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% 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. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. 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/performance for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 NIKE, Inc. (NKE): Free Stock Analysis Report Suncor Energy Inc. (SU): Free Stock Analysis Report Imperial Oil Limited (IMO): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks