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The Zacks Analyst Blog Highlights Airbnb, Fortinet, Five9, The Trade Desk and ZoomInfo

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For Immediate Release

Chicago, IL – November 1, 2022 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Airbnb (ABNB - Free Report) , Fortinet (FTNT - Free Report) , Five9 (FIVN - Free Report) , The Trade Desk (TTD - Free Report) and ZoomInfo (ZI - Free Report) .

Here are highlights from Monday’s Analyst Blog:

5 Technology Stocks Poised to Beat Earnings Estimates in Q3

The technology sector had a tough third-quarter 2022 due to challenging global macro-economic conditions, semiconductor chip shortage, supply-chain constraints, raging inflation, unfavorable forex due to a strong U.S. dollar and the increasingly hawkish stance of the U.S. Federal Reserve.

Technology giants like Microsoft and Alphabet reported unenthusiastic earnings results, while Meta Platforms disappointed.

Apple was exceptional, reporting strong fiscal fourth-quarter results, with record revenues and earnings, driven by steady sales of iPhone and a jump in Mac sales (25.4% year over year) despite slumping PC shipments globally.

Per Gartner's latest report, 68 million PCs were shipped in the third quarter (ended in September) of 2022, down 19.5% from the year-ago period. Lenovo, HP and Dell Technologies witnessed 15.3%, 27.9% and 21.1% declines, respectively. Apple witnessed a 15.6% decline, much better than HP and Dell.

PC shipment declines, along with slowing cloud business, negatively impacted Microsoft's first-quarter fiscal 2023 results.

Alphabet also cautioned about slowing cloud growth. The Google parent witnessed sluggishness in YouTube ads and Google Network due to a slowdown in digital advertisement that also severely impacted its peer Meta Platforms.

Meta's third-quarter 2022 advertising revenues (down 3.7% year over year) suffered from weak advertising demand. The healthcare and travel verticals were the largest positive contributors to ad revenue growth in the reported quarter, fully offset by weakness in online commerce, gaming and financial services.

Upcoming Earnings to Watch

A chunk of technology companies is set to report their earnings results over the next couple of weeks. Although they are expected to have faced the issues plaguing the technology sector this earnings season, we believe that several are well-poised to beat earnings estimates. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Nevertheless, finding technology stocks with the potential to beat earnings estimates can be daunting. Our proprietary methodology, however, makes it fairly simple.

You could narrow down the list of choices by looking at stocks that have the combination of a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they're reported with our 

Earnings ESP is our proprietary methodology for determining stocks, which have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
 
Our research shows that for stocks with this combination of ingredients, the odds of a positive earnings surprise are as high as 70%.

Top Bets

Five technology stocks mentioned below have the right combination of elements to beat on earnings this reporting cycle:

San Francisco, CA-based Airbnb has an Earnings ESP of +0.81% and currently flaunts a Zacks Rank of 1. You can see the complete list of today's Zacks #1 Rank stocks here.

The company is scheduled to report third-quarter 2022 results on Nov 1. The Zacks Consensus Estimate for its earnings has moved up 2.1% to $1.46 per share over the past 30 days.

Sunnyvale, CA-based Fortinet is scheduled to report third-quarter 2022 results on Nov 2.

The company has a Zacks Rank #2 and an Earnings ESP of +2.44%.

The Zacks Consensus Estimate for its earnings has been unchanged at 27 cents per share over the past month.

San Ramon, CA-based Five9 has a Zacks Rank of 2 and an Earnings ESP of +7.04%. The company is scheduled to report third-quarter 2022 results on Nov 7.

The Zacks Consensus Estimate for its earnings has been revised 12.5% up to 36 cents per share over the past 30 days.

Ventura, CA-based The Trade Desk currently has a Zacks Rank #2 and an Earnings ESP of +2.13%.

The company is set to report third-quarter 2022 results on Nov 9. The consensus mark for earnings has risen by a penny to 24 cents per share over the past 30 days.

Vancouver, WA-based ZoomInfo is set to report third-quarter 2022 results on Nov 1. The company has an Earnings ESP of +1.27% and a Zacks Rank of 2.

The consensus estimate for its earnings has been unchanged at 20 cents per share over the past 30 days.

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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/performance for information about the performance numbers displayed in this press release.

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