Chicago, IL – November 29, 2024 – Zacks Equity Research has made significant announcements. Gap Inc. (GAP) is named the Bull of the Day, while AMN Healthcare Services, Inc. (AMN) takes the Bear of the Day title. Additionally, analyses are provided on Fortinet Inc. (FTNT), Datadog Inc. (DDOG), and Palantir Technologies Inc. (PLTR).

Gap Inc.: A Retail Turnaround Story

Gap Inc. is back and showing bullish signs for the 2024 holiday season. As a Zacks Rank #1 (Strong Buy) company, it is expected to achieve double-digit earnings growth this year. It is the largest specialty apparel company in America, operating brands like Old Navy, Gap, Banana Republic, and Athleta. Products are available through various channels globally.In the third quarter of fiscal 2024, Gap reported results that beat the Zacks Consensus Estimate by $0.16. Earnings were $0.72 compared to the consensus of $0.56, marking the seventh consecutive earnings surprise. Net sales increased by 2% to $3.8 billion, with online sales rising 7% and now accounting for 40% of total sales.The comparable sales, a key retail metric, showed an improvement of 1% year-over-year after a 2% decline in the same quarter last year. Three brands - Gap, Banana Republic, and Athleta - saw improvement. Banana Republic's decline was only 1% after an 8% drop last year, boosted by the men's business. Athleta turned around with comparable sales up 5% after a 19% plunge last year. Old Navy had a flat comparable after a 1% increase last year but faced tougher comparables and weather-related challenges.Other fundamentals were solid in the third quarter. Gross margins rose 140 basis points to 42.7%, and inventory declined 2% to $2.3 billion. Gap is optimistic about the holiday season and the fourth quarter, raising its full-year sales, operating income growth, and gross margin guidance. Analysts are also bullish, with 6 earnings estimates revised higher in the last week for both fiscal 2024 and fiscal 2025. The Zacks Consensus Estimate for fiscal 2024 jumped to $2.00 from $1.87, representing 39.9% earnings growth.In terms of valuation, Gap is cheap on a price-to-earnings (P/E) basis, with a forward P/E of just 12.1. It also pays a dividend of $0.60 per share, currently yielding 2.5%. For investors looking for a turnaround play in specialty retail, Gap should be on their short list.

AMN Healthcare Services: Struggling in the Healthcare Staffing Market

AMN Healthcare Services, Inc. still can't find the bottom in the healthcare staffing market. As a Zacks Rank #5 (Strong Sell) company, it is expected to see earnings fall 62.4% this year, with no rebound expected in 2025.AMN Healthcare provides total talent solutions for healthcare organizations across the US. Its services include direct staffing, vendor-neutral and managed services programs, and more. Clients include various healthcare settings.In the third quarter of 2024, AMN Healthcare reported results that beat the Zacks Consensus Estimate by $0.03. Earnings were $0.61 compared to the consensus of $0.58. Despite the beat, the company has not seen the bottom yet in the post-COVID correction. Demand for medical professionals was high during the pandemic, but industry conditions remain challenging.Revenue fell 19% to $687.5 million and was also down 7% compared to the prior quarter. The Nurse and Allied Solutions segment took a big hit, falling 30% year-over-year to $399 million and 10% from the prior quarter. Travel nurse staffing also declined significantly.AMN Healthcare has $31 million in cash and cash equivalents as of September 30, 2024, and total debt of $1.135 billion. The company's fourth-quarter guidance is not encouraging a quick bottoming out. Analysts are bearish, with 3 cutting earnings estimates for 2024 and 4 for 2025 in the last 30 days. The 2024 Zacks Consensus Estimate has fallen to $3.09 from $3.15, representing a 62.4% decline. 2025 is also grim, with the Zacks Consensus falling to $1.92 from $2.93 in the last month, indicating another 38.1% earnings decline.Shares of AMN Healthcare Services have plunged over the last few years and are at new 5-year lows. For the year, shares are down 66%. Despite a forward P/E ratio of 8.5, with earnings estimates still being slashed and earnings growth expected to decline, AMN Healthcare is not a value but a trap. For investors interested in staffing companies, it might be best to stay on the sidelines.

Three Cybersecurity Giants for Long-Term Investment

Cyber Monday is a major marketing event in the US. Online retailers offer special promotions on this day. In this regard, three cybersecurity behemoths - Fortinet Inc. (FTNT), Datadog Inc. (DDOG), and Palantir Technologies Inc. (PLTR) - are recommended for long-term investment.Cybersecurity encompasses measures to protect systems from digital attacks. The widespread adoption of AI and IoT devices has increased vulnerabilities, necessitating advanced security solutions. These firms offer integrated protection and simplify IT security infrastructure.Fortinet Inc.'s third-quarter results show strength in demand from large enterprise customers and growth in security subscriptions. Continued deal wins are a key driver. Higher IT spending on cybersecurity is expected to aid FTNT's growth. Zacks Rank #1 Fortinet has expected revenue and earnings growth rates of 11% and 33.7% for the current year, and 12% and 6.1% for 2025. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year, and next-year earnings has improved over the last 30 days.Datadog Inc.'s third-quarter 2024 top line benefited from customer demand. It had a high number of customers with an annual run rate of $100K or more. The dollar-based retention rate was in the mid-110s. Contributions from cloud partners and an expanding portfolio are key growth drivers. Zacks Rank #2 Datadog has expected revenue and earnings growth rates of 24.9% and 32.6% for the current year, and 20.1% and 10% for 2025. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year, and next-year earnings has improved over the last 30 days.Palantir Technologies builds software platforms for the intelligence community. Its commercial business has gained pace, driven by its AI venture. Zacks Rank #2 Palantir Technologies has expected revenue and earnings growth rates of 26.6% and 52% for the current year, and 24.5% and 24.6% for 2025. The Zacks Consensus Estimate for current-quarter, next-quarter, current-year, and next-year earnings has improved over the last 30 days.Since 2000, Zacks' top stock-picking strategies have outperformed the S&P. Today, you can access their live picks without cost or obligation.