Apple (AAPL) has big plans for taking business customers away from Research In Motion (RIMM). They include adding ?push? email and allowing third-party developers to create applications. Both of these companies find themselves on the All Star Analyst Portfolio . This exclusive portfolio represents all stocks with a Strong Buy rating from at least three analysts with a 5-Star All Star ranking. Read about AAPL, RIMM and two other names from the portfolio.
Here is a synopsis of why these stocks are in the All Star Analysts Portfolio:
Apple (AAPL) wants to compete directly with Research In Motion?s (RIMM) Blackberry device, and recently announced some new features for the iPhone to gain more favor with business customers. One of the more important changes will be the addition of ?push? email. The company also provided outside developers with a software development kit (SDK) to create new applications for the iPhone and iPod Touch. AAPL announced that more than 100,000 developers had downloaded the beta SDK in the first four days after the Mar 6 launch. While directly competing with the already well-entrenched RIMM will be a big challenge, All Star Analysts nonetheless continue to appreciate AAPL?s innovation and potential.
Chesapeake Energy?s (CHK) fourth-quarter report included adjusted earnings per share of 93 cents, which bettered the consensus by about 14.8%. It also improved from the previous year. The natural gas company, whose chairman continues to aggressively buy its stock, beat Wall Street?s EPS predictions in each quarter of the year, with an average surprise of about 11.2%. Furthermore, the company?s production growth has been at or near the top of the industry for a number of years. Three All Star Analysts current recommend the company, and earnings estimates for this year are up 3.8% over the past month.
Hewlett-Packard (HPQ) currently has six All Star Analyst recommendations ? more than any other company in the portfolio. It is a Zacks #2 Rank with earnings estimates for this fiscal year rising by almost 5% in the past month. In its fiscal first quarter, non-GAAP EPS of 86 cents beat the consensus by almost 6.2% and easily eclipsed the year-ago result of 65 cents. Net revenue moved higher 13% to $28.5 billion. HPQ even decided to raise its guidance, due to its confidence in anticipated cost reductions and share gains in key markets.
Research In Motion (RIMM) is a Zacks #2 Rank with earnings estimates for the year ended February 2008 and ending February 2009 up 3.2% and 5.6%, respectively, in the past three months. The company is recommended by five All Star Analysts. RIMM is the leader in high-end business phones thanks to its BlackBerry products, and, as mentioned earlier, there are a number of companies looking to get in on the action. RIMM is scheduled to report its fiscal fourth-quarter results in early April. The fiscal first quarter saw a positive EPS surprise of approximately 4.8% over the consensus. In the first three quarters of the fiscal year, RIMM has put together an average surprise of 6.1%. Revenue was up 100% year over year in the fiscal quarter.
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