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Harmonic (HLIT - Free Report) is a Zacks Rank #5 (Strong Sell) and has the growth divergence that I always look for. That means I see a strong Zacks Growth Style Score and weak Zacks Value Style Score. Growth investors and value investors are looking for different things so I know I am on the right path when I see that. Let’s take a look at this stock in this Bear of the Day article.
Description
Harmonic Inc. enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally.The company has also revolutionized cable access networking via the industry's first virtualized CCAP solution, enabling cable operators to more flexibly deploy gigabit internet service to consumers' homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software-as-a-service (SaaS) technologies, or powering the delivery of gigabit internet cable services, Harmonic is changing the way media companies and service providers monetize live and VOD content on every screen.
Earnings History
The first thing I do when I look at stock 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 been able to communicate to the market. A stock that consistently beats is one that has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of HLIT, I see four straight beats of the Zacks Consensus Estimate. This makes the case even more strange that it is a Zacks Rank #5 (Strong Sell).
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For HLIT, I see estimates fluctuating.
This quarter has moved from a $0.05 to $0.00.
Next quarter has seen a similar increase from $0.06 to $0.04.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.
I see 2021 moving from $0.24 to $0.19 over the last 60 days.
The 2022 number has moved from $0.43 to $0.42 over the same time horizon.
Negative movement in earnings estimates like that are the reason that this stock is a Zacks Rank #5 (Strong Sell).
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Bear Of The Day: Harmonic (HLIT)
Harmonic (HLIT - Free Report) is a Zacks Rank #5 (Strong Sell) and has the growth divergence that I always look for. That means I see a strong Zacks Growth Style Score and weak Zacks Value Style Score. Growth investors and value investors are looking for different things so I know I am on the right path when I see that. Let’s take a look at this stock in this Bear of the Day article.
Description
Harmonic Inc. enables media companies and service providers to deliver ultra-high-quality broadcast and OTT video services to consumers globally.The company has also revolutionized cable access networking via the industry's first virtualized CCAP solution, enabling cable operators to more flexibly deploy gigabit internet service to consumers' homes and mobile devices. Whether simplifying OTT video delivery via innovative cloud and software-as-a-service (SaaS) technologies, or powering the delivery of gigabit internet cable services, Harmonic is changing the way media companies and service providers monetize live and VOD content on every screen.
Earnings History
The first thing I do when I look at stock 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 been able to communicate to the market. A stock that consistently beats is one that has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of HLIT, I see four straight beats of the Zacks Consensus Estimate. This makes the case even more strange that it is a Zacks Rank #5 (Strong Sell).
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For HLIT, I see estimates fluctuating.
This quarter has moved from a $0.05 to $0.00.
Next quarter has seen a similar increase from $0.06 to $0.04.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.
I see 2021 moving from $0.24 to $0.19 over the last 60 days.
The 2022 number has moved from $0.43 to $0.42 over the same time horizon.
Negative movement in earnings estimates like that are the reason that this stock is a Zacks Rank #5 (Strong Sell).
Chart
Harmonic Inc. Price and Consensus
Harmonic Inc. price-consensus-chart | Harmonic Inc. Quote
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>