We expect Demand Media, Inc. to beat expectations when it reports second-quarter 2016 results on Aug 4, 2016.
Why a Likely Positive Surprise?
Our proven model shows that Demand Media is likely to beat earnings because it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate (loss of 35 cents) and the Zacks Consensus Estimate (loss of 43 cents), stands at +18.61%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.
Zacks Rank #3: Note that stocks with Zacks Rank of #1 (Strong Buy), 2 (Buy) and 3 (Hold) have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Demand Media’s Zacks Rank #3 and +18.61% ESP makes us very confident in looking for a positive surprise.
What's Driving the Better-Than-Expected Results?
The company’s enriched product portfolio is expected to lead to a positive surprise in the to-be reported quarter. Moreover, Demand Media is coming up with customized products to cater to new customers and gain traction in the markets.
Additionally, synergies from acquisitions and product innovations continue to drive growth. Also, revenue addition from the Saatchi Art acquisition would support the company’s top line.
Moreover, it is noteworthy that Demand Media has surpassed the Zacks Consensus Estimate in three out of the last four quarters with an average positive surprise of 2.78%.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
CDK Global, Inc. , with an Earnings ESP of +4.26% and a Zacks Rank #1
Qualys, Inc. (QLYS - Free Report) , with an Earnings ESP of +12.50% and a Zacks Rank #3
CenturyLink, Inc. with an Earnings ESP of +1.70% and a Zacks Rank #3
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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We expect Demand Media, Inc. to beat expectations when it reports second-quarter 2016 results on Aug 4, 2016.
Why a Likely Positive Surprise?
Our proven model shows that Demand Media is likely to beat earnings because it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate (loss of 35 cents) and the Zacks Consensus Estimate (loss of 43 cents), stands at +18.61%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.
Zacks Rank #3: Note that stocks with Zacks Rank of #1 (Strong Buy), 2 (Buy) and 3 (Hold) have a significantly higher chance of beating earnings. The Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Demand Media’s Zacks Rank #3 and +18.61% ESP makes us very confident in looking for a positive surprise.
What's Driving the Better-Than-Expected Results?
The company’s enriched product portfolio is expected to lead to a positive surprise in the to-be reported quarter. Moreover, Demand Media is coming up with customized products to cater to new customers and gain traction in the markets.
Additionally, synergies from acquisitions and product innovations continue to drive growth. Also, revenue addition from the Saatchi Art acquisition would support the company’s top line.
Moreover, it is noteworthy that Demand Media has surpassed the Zacks Consensus Estimate in three out of the last four quarters with an average positive surprise of 2.78%.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:
CDK Global, Inc. , with an Earnings ESP of +4.26% and a Zacks Rank #1
Qualys, Inc. (QLYS - Free Report) , with an Earnings ESP of +12.50% and a Zacks Rank #3
CenturyLink, Inc. with an Earnings ESP of +1.70% 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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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