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What's in Store for Equifax (EFX) this Earnings Season?
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Equifax Inc. (EFX - Free Report) is expected to report second-quarter 2016 results on Jul 27. Last quarter, the company posted a positive earnings surprise of 6%. Let's see how things are shaping up for this announcement.
Factors to Consider
Equifax posted better-than-expected numbers for the first quarter, which also grew year over year.
Management’s efforts, such as strategic initiatives for product innovation, expansion of data assets through acquisitions and continuous share gains in North America, should drive results in the to-be reported quarter. Also, the company’s strong correlation with the consumer and financial markets as well as exposure in the U.S. and Europe are likely to propel growth, going ahead.
However, competition from the likes of Automatic Data Processing Inc. (ADP - Free Report) , Fiserv Inc., Moody’s Corp. and uncertainty in the mortgage sector raise concerns.
Our proven model does not conclusively show that Equifax will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Its Earnings ESP is -0.74% as the Most Accurate estimate of $1.35 per share is pegged lower than the Zacks Consensus Estimate of $1.36.
Zacks Rank: Equifax’ Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are a couple of companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
Garmin Ltd. (GRMN - Free Report) with Earnings ESP of +4.48% and a Zacks Rank #3
Amazon.com, Inc. (AMZN - Free Report) with Earnings ESP of +37.72% and a Zacks Rank #3
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What's in Store for Equifax (EFX) this Earnings Season?
Equifax Inc. (EFX - Free Report) is expected to report second-quarter 2016 results on Jul 27. Last quarter, the company posted a positive earnings surprise of 6%. Let's see how things are shaping up for this announcement.
Factors to Consider
Equifax posted better-than-expected numbers for the first quarter, which also grew year over year.
Management’s efforts, such as strategic initiatives for product innovation, expansion of data assets through acquisitions and continuous share gains in North America, should drive results in the to-be reported quarter. Also, the company’s strong correlation with the consumer and financial markets as well as exposure in the U.S. and Europe are likely to propel growth, going ahead.
However, competition from the likes of Automatic Data Processing Inc. (ADP - Free Report) , Fiserv Inc., Moody’s Corp. and uncertainty in the mortgage sector raise concerns.
EQUIFAX INC Price and EPS Surprise
EQUIFAX INC Price and EPS Surprise | EQUIFAX INC Quote
Earnings Whispers
Our proven model does not conclusively show that Equifax will beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: Its Earnings ESP is -0.74% as the Most Accurate estimate of $1.35 per share is pegged lower than the Zacks Consensus Estimate of $1.36.
Zacks Rank: Equifax’ Zacks Rank #3 increases the predictive power of ESP. However, we need to have a positive ESP to be confident about an earnings surprise.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are a couple of companies which, as per our model, have the right combination of elements to post an earnings beat this quarter:
Garmin Ltd. (GRMN - Free Report) with Earnings ESP of +4.48% and a Zacks Rank #3
Amazon.com, Inc. (AMZN - Free Report) with Earnings ESP of +37.72% and a Zacks Rank #3
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>