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Facebook (FB) and 3 Internet Stocks that Look Great for 2017
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Another year is coming to an end and it’s time for investors to re-examine their portfolios to maximize profits, cut losses, sell the non-performers and include the stocks that will make 2017 profitable for them.
Talking about profitable stocks, it is hard to imagine any investment portfolio that is devoid of Internet/technology stocks. These stocks have somehow always been the cynosure of Wall Street.
The tech sector has had a relatively good run against a tough macroeconomic backdrop this year so far. Continued advancements in AR/VR & AI technology, self-driving cars, high-speed Internet and home automation kept the buzz surrounding the sector alive. Overall, the S&P North American Technology Sector Index is up 14.3% year-to-date.
We note that tech stocks took a massive beating following Donald Trump’s surprise White House win. Silicon Valley had openly criticized Trump for his ideas, ranging from immigration to revamping of corporate tax structure as well as encryption, net neutrality and a lot of other sensitive issues. Trump’s ideas regarding trade relations with China had startled tech behemoths. Trump was also vocal about his disapproval of some of the ways of Silicon Valley.
However, Trump convened a meeting with all the big tech companies at the Trump Towers in New York a few days back to iron out the differences. Apparently, the meeting was “very productive” if we go by Amazon (AMZN - Free Report) CEO Jeff Bezos. Nonetheless, it remains to be seen how things between the “frenemies” turn out in the coming year.
Facebook: One of the Best Picks
Among sector bellwethers, Facebook, Inc. has been one of the most sought after stocks. Facebook shares grew 12.1% year to date compared with Zacks Categorized Internet Services industry’s gain of 2.7%.
The good show on the trading front has largely been due to phenomenal results in back-to-back quarters. Facebook has beaten the Zacks Consensus Estimate in the trailing four quarters and has an average positive earnings surprise of 21.11%. Stellar revenues from mobile ads and its video efforts remain primary growth catalysts.
Also, Facebook’s consistently expanding user growth remains one of its biggest strengths. Facebook has an unparalleled user base of 1.79 billion monthly active users (MAUs). In addition, its mobile MAUs, Daily Active Users (DAUs) as well as Mobile DAUs exceed 1 billion. Besides great fundamentals, Facebook has equally strong future growth prospects. Monetization opportunities presented by its subsidiaries WhatsApp, Instagram and Messenger along with its foray into AR/VR and AI technologies bode well for the social media company.
We continue to believe that the Facebook juggernaut is unstoppable despite its fair share of challenges like moderating ad revenue growth rate and increasing expenses. Facebook carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, Facebook has a VGM score of B and its long-term growth rate is 27.6% compared with 16.3% growth estimated for the industry.
As the technology sector holds promise, we believe adding some more stocks to your investment portfolio can make 2017 a profitable year for investors. But how to zero in on stocks that help you to maximize returns?
This is where our Zacks proprietary methodology comes in handy. Our research shows that stocks with VGM Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 emerge as good investment opportunities. By using our screener, we bring forth three such stocks:
TrueCar, Inc. (TRUE - Free Report) engages in developing and publishing an online automotive information and communications platform. TrueCar carries a Zacks Rank #2 and has a VGM score of B. Shares of this Santa Monica based company have increased nearly 33% year-to-date. Moreover, its long-term EPS growth rate is a whopping 100%.
Forget the gym, finding great stocks should be your New Year's resolution! Don't miss out on our new Top 10 Stocks for 2017 list, which has been hand-picked from 4,400 stocks covered by the Zacks Rank. Be one of the first to see this year's list here>>
Headquartered in Goleta, CA, AppFolio, Inc. (APPF - Free Report) acts as a cloud-based software solutions provider for both legal and property management industries. AppFolio also carries a Zacks Rank #2 and has a VGM score of B. Shares have increased 61% year-to-date. Moreover, its long term EPS growth is 30%.
Veeva Systems Inc. (VEEV - Free Report) operates as a industry-specific, cloud-based software solutions provider for the life sciences industry. This Pleasanton, CA, based company has a Zacks Rank #2 and a VGM score of B. Shares have increased nearly 45% year-to-date. Moreover, it has a long term EPS growth rate of 24.9%.
Conclusion
With the world getting more wired, Internet stocks will continue to attractinvestors. If you are looking for attractive investment options in this space, we recommend you keep an eye on the abovementioned stocks.
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Facebook (FB) and 3 Internet Stocks that Look Great for 2017
Another year is coming to an end and it’s time for investors to re-examine their portfolios to maximize profits, cut losses, sell the non-performers and include the stocks that will make 2017 profitable for them.
Talking about profitable stocks, it is hard to imagine any investment portfolio that is devoid of Internet/technology stocks. These stocks have somehow always been the cynosure of Wall Street.
The tech sector has had a relatively good run against a tough macroeconomic backdrop this year so far. Continued advancements in AR/VR & AI technology, self-driving cars, high-speed Internet and home automation kept the buzz surrounding the sector alive. Overall, the S&P North American Technology Sector Index is up 14.3% year-to-date.
We note that tech stocks took a massive beating following Donald Trump’s surprise White House win. Silicon Valley had openly criticized Trump for his ideas, ranging from immigration to revamping of corporate tax structure as well as encryption, net neutrality and a lot of other sensitive issues. Trump’s ideas regarding trade relations with China had startled tech behemoths. Trump was also vocal about his disapproval of some of the ways of Silicon Valley.
However, Trump convened a meeting with all the big tech companies at the Trump Towers in New York a few days back to iron out the differences. Apparently, the meeting was “very productive” if we go by Amazon (AMZN - Free Report) CEO Jeff Bezos. Nonetheless, it remains to be seen how things between the “frenemies” turn out in the coming year.
Facebook: One of the Best Picks
Among sector bellwethers, Facebook, Inc. has been one of the most sought after stocks. Facebook shares grew 12.1% year to date compared with Zacks Categorized Internet Services industry’s gain of 2.7%.
The good show on the trading front has largely been due to phenomenal results in back-to-back quarters. Facebook has beaten the Zacks Consensus Estimate in the trailing four quarters and has an average positive earnings surprise of 21.11%. Stellar revenues from mobile ads and its video efforts remain primary growth catalysts.
Also, Facebook’s consistently expanding user growth remains one of its biggest strengths. Facebook has an unparalleled user base of 1.79 billion monthly active users (MAUs). In addition, its mobile MAUs, Daily Active Users (DAUs) as well as Mobile DAUs exceed 1 billion. Besides great fundamentals, Facebook has equally strong future growth prospects. Monetization opportunities presented by its subsidiaries WhatsApp, Instagram and Messenger along with its foray into AR/VR and AI technologies bode well for the social media company.
We continue to believe that the Facebook juggernaut is unstoppable despite its fair share of challenges like moderating ad revenue growth rate and increasing expenses. Facebook carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Also, Facebook has a VGM score of B and its long-term growth rate is 27.6% compared with 16.3% growth estimated for the industry.
FACEBOOK INC-A Price
FACEBOOK INC-A Price | FACEBOOK INC-A Quote
3 Other Internet Stocks to Consider
As the technology sector holds promise, we believe adding some more stocks to your investment portfolio can make 2017 a profitable year for investors. But how to zero in on stocks that help you to maximize returns?
This is where our Zacks proprietary methodology comes in handy. Our research shows that stocks with VGM Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or Zacks Rank #2 emerge as good investment opportunities. By using our screener, we bring forth three such stocks:
TrueCar, Inc. (TRUE - Free Report) engages in developing and publishing an online automotive information and communications platform. TrueCar carries a Zacks Rank #2 and has a VGM score of B. Shares of this Santa Monica based company have increased nearly 33% year-to-date. Moreover, its long-term EPS growth rate is a whopping 100%.
Forget the gym, finding great stocks should be your New Year's resolution! Don't miss out on our new Top 10 Stocks for 2017 list, which has been hand-picked from 4,400 stocks covered by the Zacks Rank. Be one of the first to see this year's list here>>
Headquartered in Goleta, CA, AppFolio, Inc. (APPF - Free Report) acts as a cloud-based software solutions provider for both legal and property management industries. AppFolio also carries a Zacks Rank #2 and has a VGM score of B. Shares have increased 61% year-to-date. Moreover, its long term EPS growth is 30%.
Veeva Systems Inc. (VEEV - Free Report) operates as a industry-specific, cloud-based software solutions provider for the life sciences industry. This Pleasanton, CA, based company has a Zacks Rank #2 and a VGM score of B. Shares have increased nearly 45% year-to-date. Moreover, it has a long term EPS growth rate of 24.9%.
Conclusion
With the world getting more wired, Internet stocks will continue to attractinvestors. If you are looking for attractive investment options in this space, we recommend you keep an eye on the abovementioned stocks.