Is there a cornucopia of returns in Sundial Growers Inc. (SNDL) And FuelCell Energy Inc. (FCEL)

Sundial Growers Inc. (NASDAQ: SNDL) shares are -88.63% down in the year-to-date (YTD) period and have moved 7.44% or $0.02 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +22.25% lower. Comparatively, the stock is -91.18% down YTD and -60.04% over the trailing 3-month period. If we look at the shorter duration, its week performance is -12.07% and -40.37% over the month.

Analyst Recommendations

On June 29, 2020, BMO Capital Markets recommended the SNDL stock is a Market Perform, while earlier, CIBC had Upgrade the stock as a Neutral on August 17, 2020. 4 analysts offering the recommendations for the stock have a consensus rating of 3.00 to suggest that the SNDL stock is a “Hold. 0 of the 4 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 0 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $0.34. The forecasts give the Sundial Growers Inc. stock a price target range of $1.00 on the higher side while at least one analyst think the stock could plunge to a low of $0.50. The two limits represent an upside potential of 66.0% or 32.0%.

Earnings Forecast

Analysts estimate the earnings to decrease -186.70% in the current quarter to -$0.11, up from the -$1.06 reported in the same quarter a year ago. For the current year, earnings should grow to an average of -$0.67, up 20.40% from -$2.37 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.11 and -$0.11. Wall Street estimates earnings per share to be at an average of -$0.2 for the next year.

FuelCell Energy Inc. (NASDAQ:FCEL), on the other hand, is trading around $2.99 with a market cap of $642.79M and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $2.42 and spell out a less modest performance – a -23.55% return. Some analysts are even forecasting -$0.4 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the FuelCell Energy Inc. (FCEL) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

FCEL’s operating margin was negative on the trailing 12 months basis, remaining steady at -65.80%, while the operating expenses over the recent quarter were at $9.02 million. This represented a 52.21% of the company’s total revenues which amounted $18.88 million. With this in place, we can see that the company’s diluted EPS declined -$0.07 on the year-over-year period, shrinking to -$2.06 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Jul 2020), the total assets figure advanced to $394.64 million from $391.4 million over the previous quarter. The cash flow from operating activities totaled -$14.72 million, significantly higher than the -$18.2 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$29.02 million.

Insider activity

Insiders have transacted a total of 32 times at FuelCell Energy Inc. over the last 6 months, with insider purchases undertaken 19 times and accounting for 181,303 shares. Insider sales totaled 17,101 shares over the same period, with these deals completed in 13 transactions. Looking at these numbers, we realize that net purchases over that period are 6.0 shares. Insiders now hold a total of 11.11M shares after the latest sales, with 1.70% net shares purchased.

Major holders

Insiders own 0.10% of the company shares, while shares held by institutions stand at 26.00% with a share float percentage of 205.69M. Investors are also buoyed by the number of investors in a company, with FuelCell Energy Inc. having a total of 84 institutions that hold shares in the company.