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Chicago, IL – May 5, 2025 – Zacks Equity Research shares Deutsche Bank DB as the Bull of the Day and Caesars Entertainment CZR as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Advanced Micro Devices AMD, Dell Technologies DELL and Meta Platforms META.
Here is a synopsis of all five stocks:
With many analysts turning bullish on European equities, it's noteworthy that Deutsche Bank stock was recently added to the Zacks Rank #1 (Strong Buy) list.
Landing the Bull of the Day, Deutsche Bank’s Zacks Banks-Foreign Industry is currently in the top 4% of over 240 Zacks industries. For those who haven’t noticed, Deutsche Bank’s American Depositary Receipt (ADR) has been one of the top performers this year, soaring over +50% in 2025 while the broader indexes work out of correction territory in regard to U.S. markets.
Trading at 52-week highs of $26 a share, there could still be more upside for Deutsche Bank stock based on a pleasant trend of earnings estimate revisions.
With sentiment improving regarding concerns over tariffs and economic uncertainty, European markets have been resilient. Goldman Sachs (GS), for instance, sees strong corporate earnings in Europe and higher defense spending as a major catalyst. This comes as there has reportedly been a record rotation of global investors shifting away from U.S. equities and increasing their European stock holdings.
Notably, Deutsche Bank analysts have shifted to a positive outlook on other European stocks, based on improved market conditions and reduced geopolitical tensions. Despite the European Union (EU) not being immune to higher tariffs from Washington, many pundits have pointed out that their biggest trade partners are still each other.
As one of the world’s largest financial institutions, Deutsche Bank’s steady expansion has kept investors engaged. Being the largest bank in Germany, Deutsche Bank’s total sales are expected to be up 7% in fiscal 2025 and are projected to increase another 2% in FY26 to $35.39 billion.
More intriguing and relating to Goldman Sachs' bullish commentary on European equities is that Deutsche Bank’s annual earnings are currently slated to soar 116% this year to $3.20 per share, compared to EPS of $1.48 in 2024. Plus, FY26 EPS is projected to rise another 11%.
Extending Deutsche Bank’s rally has been rising earnings estimate revisions. As shown below, FY25 EPS estimates (F1) have risen 9% over the last 60 days and are now up 23% from a year ago. Even better, FY26 EPS estimates (F2) have popped 14% in the last two months and have increased 26% over the last year.
Deutsche Bank’s selection as the Bull of the Day is not to say that investors should shift away from U.S. equities, but it wouldn’t be surprising if the rally in DB continued with shares still trading at 8X forward earnings and less than 1X sales.
Furthermore, diversification is an effective hedge against economic uncertainty, and Deutsche Bank is worthy of consideration outside of the renowned U.S. banks that typically catch investors' attention.
As U.S. markets work their way out of correction territory, consumer sentiment has still dropped significantly in recent months, and some Leisure and Recreation services companies may take the brunt of the hit.
One such company could be casino and resort operator Caesars Entertainment, with its stock having a Zacks Rank #5 (Strong Sell) and landing the Bear of the Day.
Reporting its Q1 results last Tuesday, Caesars Entertainment posted a much wider adjusted loss than expected at -$0.54 a share compared to estimates of -$0.19. This was despite Q1 sales of $2.79 billion topping expectations of $2.78 billion. Still, Caesars Entertainment has missed top and bottom-line expectations in three of its last four quarterly reports, which has raised investors' concerns.
Year to date, Caesars Entertainment’s stock is down 17% to trail the S&P 500’s -5% and has lagged its Zacks Leisure & Recreation Services Market’s -13%. More concerning, CZR has now plummeted more than 50% in the last three years.
Unfortunately, more downside risk could be ahead for Caesars Entertainment’s stock as earnings estimate revisions have continued to decline following the company’s lackluster Q1 results.
Over the last quarter, fiscal 2025 EPS estimates have now sunk 70% from estimates of $1.25 per share to $0.37. Although Caesars Entertainment’s EPS growth may look intriguing, FY26 earnings estimates have fallen 40% from three months ago, from $2.17 a share to $1.28.
Based on its very dismal stock performance and the steep decline in earnings estimate revisions, it’s best to avoid Caesars Entertainment’s stock for now. To that point, the consumer discretionary sector will likely feel the effects of any further economic uncertainty, and there could be less demand for non-essential recreational activities.m
Advanced Micro Devices is set to release its first-quarter 2025 results on May 6.
AMD expects first-quarter 2025 revenues of $7.1 billion (+/-$300 million). At the mid-point, this represents year-over-year growth of approximately 30% and a sequential decline of approximately 7%.
The Zacks Consensus Estimate for AMD's first-quarter revenues is pegged at $7.12 billion, suggesting year-over-year growth of 30.11%. The consensus mark for first-quarter earnings is pegged at 93 cents per share, unchanged over the past 30 days. The earnings estimate indicates growth of 50% on a year-over-year basis.
AMD beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 2.32%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar).
Let's see how things have shaped up for the upcoming earnings announcement.
AMD's first-quarter performance is expected to have benefited from growth in both its data center and client segments, driven by continued demand for its EPYC processors and Ryzen chips. The data center segment, in particular, has been a major contributor to AMD's success, and the company expects this trend to have continued in the to-be-reported quarter.
AMD expects the Data Center segment's revenues to significantly increase, driven by the strong sales of its data center chips that support hyperscalers and power AI and Generative AI applications. The Zacks Consensus Estimate for first-quarter Data Center revenues is pegged at $3.4 billion, indicating an impressive year-over-year surge of 47.5%.
The company is likely to see continued growth in its client business, driven by higher demand for Ryzen processors across desktop and mobile platforms. AMD's collaborations, such as the one withDell Technologies for Ryzen Pro processors in commercial PCs, are expected to have bolstered growth in this segment in the to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter Client segment revenues is pegged at $2.04 billion, indicating year-over-year growth of 49.3%.
AMD's near-term prospects suffer from weakness in the Embedded and Gaming segments. On a year-over-year basis, these segments' revenues are expected to have declined.
The Zacks Consensus Estimate for first-quarter Embedded revenues is pegged at $570 million, indicating a 0.9% year-over-year decline. The consensus mark for Gaming revenues is pegged at $509 million, suggesting a massive 38.1% decline.
Advanced Micro Devices shares have lost 17.9% in the year-to-date period, underperforming the Zacks Computer and Technology sector's decrease of 9% and the Zacks Computer – Integrated Systems industry's decline of 7.2%.
AMD stock is not so cheap, as its Value Score of F suggests a stretched valuation at this moment.
In terms of the forward 12-month price/sales, Advanced Micro Devices is currently trading at 4.68X, higher than the Computer – Integrated Systems industry's 2.90X.
AMD benefits from a rich partner base, which includes Microsoft, Oracle, Dell Technologies, Hewlett Packard, Lenovo, Meta Platforms and IBM having Instinct platforms in production.
The demand for AI accelerators like the Instinct MI300 series, especially from hyperscalers, is expected to continue growing, further boosting data center revenues in the first quarter of 2025. In the Data Center AI business, MI300X deployment increased with cloud partners, including Meta Platforms, Microsoft, IBM, Digital Ocean and Dell Technologies, among others.
Meta Platforms used MI300X to power its Llama 405B frontier model on meta.ai. It added instinct GPUs to its OCP-compliant Grand Teton platform, designed for deep learning recommendation models and large-scale AI inferencing workloads.
Microsoft is using MI300X to power multiple GPT 4-based Copilot services. IBM announced plans to enable MI300X on its Watson X AI and data platform for training and deploying enterprise-ready generative AI applications.
Dell Technologies started offering MI300X as part of its AI factory solution suite. DELL is providing multiple ready-to-deploy containers through its Dell Enterprise Hub on Hugging Face.
AMD's expanding portfolio and strategic acquisitions are expected to have improved its top-line growth in the to-be-reported quarter amid weakness in the Embedded and Gaming segments, and fierce competition from NVIDIA.
AMD has a Growth Score of C, which makes it unattractive for growth-oriented investors. Stretched valuation is another concern.
AMD currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
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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/performancefor information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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