Back to top

Image: Bigstock

Attunity, JD.com, Meet, BlackBerry and Snap highlighted as Zacks Bull and Bear of the Day

Read MoreHide Full Article

For Immediate Release

Chicago, IL – November 12, 2018 – Zacks Equity Research Attunity as the Bull of the Day, JD.com (JD - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Meet Group, Inc. , BlackBerry Limited (BB - Free Report) and Snap Inc. (SNAP - Free Report) .

Here is a synopsis of all five stocks:

Bull of the Day:

Volatility is back in a big way for the stock market. After the mid-term elections, investors thought that the worst was over. Late last week, sellers jumped back into the market and put investors back on edge. For the astute investor, this sort of volatility can be a perfect time to nibble on stocks. That doesn’t mean that you can blindly buy the dip in the market. Looking for stocks with positive earnings estimate revisions during downturns in markets can lead to big profits. One example of a stock with positive revisions is today’s Bull of the Day, Attunity.

Attunity is a Zacks Rank #1 (Strong Buy) in the Internet Software industry which ranks in the Top 16% of our Zacks Industry Rank. Attunity Ltd., together with its subsidiaries, develops, markets, sells, and supports data integration and Big Data management software solutions worldwide. It offers Attunity Replicate, a data replication software for delivering, sharing, and ensuring the availability of data for meeting business operations, analytics, and business intelligence needs; Attunity Gold Client, a replication software for data management within SAP environments; and Attunity Visibility, a software for data usage analytics in Big Data environments.

The reason for the favorable Zacks Rank is the series of recent earnings estimate revisions to the upside. Over the last thirty days, two analysts have increased their estimates for the current year and next year. The bullish moves have pushed up our Zacks Consensus Estimate for the current year from 26 cents to 40 cents, while next year’s number has gone up from 32 cents to 49 cents.

The company is coming off a solid quarter where they reported EPS of 20 cents versus expectations calling for just 3 cents. This upcoming quarter, analysts are looking for 9 cents EPS on sales of $23.7 million. That would represent growth of 29.6% this quarter. Current year growth numbers are on pace for 35.2% sales growth on revenues of $83.98 million.

Bear of the Day:

It shouldn’t come as a surprise to anyone that Chinese stocks have come under pressure over the last few months. You can’t have a trade war with your largest single customer and not expect some negative consequences. It may be tempting to come in and try to scoop some of these stocks up off the bottom. While there certainly are some names which make sense to add here, there are other stocks that you should still probably avoid. One of those stocks is today’s Bear of the Day JD.com.

JD is currently a Zacks Rank #5 (Strong Sell) in the Internet Commerce industry which ranks in the Bottom 33% of our Zacks Industry Rank. JD.com, Inc., through its subsidiaries, operates as an e-commerce company and retail infrastructure service provider in the People's Republic of China. It operates in two segments, JD Mall and New Businesses. The company offers home appliances; mobile handsets and other digital products; desktop, laptop, and other computers, as well as printers and other office equipment; furniture and household goods; apparel; cosmetics, personal care items, and pet products; women's shoes, bags, jewelry, and luxury goods; men's shoes, sports gears, and fitness equipment; automobiles and accessories; mother and childcare products, toys, and instruments; and food, beverage, and fresh produce.

The reason for the unfavorable Zacks Rank is the series of negative earnings estimate revisions over the last sixty days. Four analysts have cut their earnings estimates for the current year and next year. The bearish revisions have dropped our Zacks Consensus Estimates from 63 cent all the way down to 25 cents for the current year. Next year’s number has come down from $1.17 all the way down to 58 cents.

Additional content:

3 Stocks Under $10 to Buy Now

Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive”, and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.

That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced stocks.

When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.

Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these tech companies stick out right now:

1. The Meet Group, Inc.

Prior Close: $3.86

The Meet Group is a social media company offering several different social entertainment apps, including MeetMe, Skout and Lovoo. These apps are primarily focused on streaming video, mobile chat, gifting, and photo sharing. MEET just exceeded estimates in its most recent earnings report, but shares pulled back after a strong run up to the announcement. This could mean investors have a chance to get in before analyst revisions develop and a post-earnings bottom is solidified.

Moreover, MEET shares look relatively cheap at their current levels. The firm is profitable and trading at just 13x forward earnings. It also has a P/S of 1.8, which marks a steep discount to the industry’s average of 3.9. We often prefer the P/S ratio as a metric of value for smaller tech firms, so it is interesting to see that investors are undervaluing MEET’s revenue stream right now.

2. BlackBerry Limited

Prior Close: $9.33

BlackBerry is best known to the public for its once-iconic brand of smartphones, but the company ditched hardware manufacturing recently and now serves as an enterprise software and services company. The new BlackBerry’s claim to fame is its security software, which is on track to be a major option in the budding self-driving car market.

BB is a Zacks Rank #1 (Strong Buy). A struggle to meet expectations on high valuations has hurt the stock this year, but BlackBerry looks to have found a bottom and could very well be poised to rebound as earnings estimates move higher.

The company has witnessed three positive revisions to its full-year EPS estimates within the past 60 days. Analysts are now expecting earnings to be six cents higher than estimates suggested just two months ago. This positive analyst sentiment should help lift shares if the positive trend holds.

3. Snap Inc.

Prior Close: $6.81

Snap is the parent company of Snapchat, a popular picture and video messaging mobile application. It is no secret that Snap has struggled since its IPO in the face of stiff competition from bigger social media companies, but a better-than-expected earnings report helped the stock find a bottom, and now analyst sentiment is improving.

Snap is still expected to be in the red next year, but current estimates have its bottom line improving 37% on strong revenue growth of 34%. The stock has also seen a staggering nine positive revisions to these estimates within the past month.

It has been a rough road for Snap so far, but analysts are no longer arguing that the numbers are improving. The question is what will drive long-term growth, and initiatives like new media partnerships and hardware options seem positive.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


JD.com, Inc. (JD) - free report >>

Snap Inc. (SNAP) - free report >>

BlackBerry Limited (BB) - free report >>

Published in