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Technology Services Stocks Highlight New Additions to the Zacks Strong Buy List
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The broader Zacks Business Services Sector now has 21 stocks on the coveted Zacks Rank #1 (Strong Buy) list with a total of 232 stocks currently having the bullish ranking.
More intriguing, more than a third of these highly ranked business services stocks come from the Zacks Technology Services Industry which is in the top 34% of over 250 Zacks industries. To that point, The Zacks Technology Services Industry’s total return including dividends is +28% this year to impressively top the S&P 500’s +18% and is roughly on par with the Nasdaq’s +31%.
Image Source: Zacks Investment Research
Attributing to the industry’s strong performance is that out of 167 stocks, the average Projected EPS growth in 2023 is at 35.78% which impressively trumps the S&P 500’s 5.42%. Notably, here are three Technology Services Industry stocks that were added to the Zacks Rank #1 (Strong Buy) list this week as their outlooks have become very compelling.
Image Source: Zacks Investment Research
A Growing Online Education Platform
With annual EPS forecasted to rise 10% in fiscal 2023 and jump another 14% in FY24 to $0.97 a share, education technology company Instructure (INST - Free Report) got the nod for a strong buy this week. This is largely predicated on the trend of earnings estimate revisions after Instructure reassuringly surpassed its third quarter top and bottom line expectations in late October.
In correlation with such, FY23 and FY24 EPS estimates have risen 7% and 4% over the last 30 days respectively. It’s also noteworthy that Instructure’s total sales are now anticipated to be up 11% this year and rise another 9% in FY24 to $578.76 million. Instructure's stock has become very appealing to investors in regard to the growth of online education platforms with the company delivering a learning management system (LMS), assessments for learning, and actionable analytics.
Image Source: Zacks Investment Research
An Intriguing Super App
After going public in 2022, the expansion of Brazilian-based Inter&Co I(NTR - Free Report) is hard to overlook at the moment. Inter&Co offers a global payment platform with the company’s “super app” providing a range of services in banking, investments, credit, insurance, and cross-border services.
More recently reporting its Q3 results last Monday, earnings of $0.05 per share slightly topped estimates of $0.04 a share and climbed from an adjusted loss of -$0.01 a share in the prior-year quarter. Quarterly sales of $259.32 million came in 16% above estimates and soared 60% from $162.33 million a year ago.
With a record of 1 million new customers added during Q3, Inter&Co now has more than 29 million customers and experienced a 43% year-over-year increase in transactional volume. High double-digit percentage growth is forecasted on Inter&Co’s top and bottom lines in FY23 and FY24 with it being noteworthy that INTR shares have skyrocketed over +100% this year and are currently at 52-week highs of around $5 a share. Still, the risk to reward is favorable considering Inter&Co is starting to move past the probability line with EPS now projected at $0.15 a share this year and $0.33 per share in FY24.
Image Source: Zacks Investment Research
An Alternative Way to Capitalize on Construction-Related Activities
One way to capitalize on the innovation and technological advancement among construction-related activities is through Procore Technologies (PCOR - Free Report) which provides construction management software.
Procore went public in 2021, and the growing niche for its services has been underestimated recently with the company blasting Q3 earnings expectations earlier in the month. Third-quarter earnings of $0.09 per share intriguingly surpassed estimates that called for an adjusted loss of -$0.06 a share. Plus, this soared from an adjusted loss of -$0.09 per share a year ago with Q3 sales of $247.91 million surpassing estimates by 6% and climbing 33% from $186.43 million in the prior year quarter.
Image Source: Zacks Investment Research
Procore’s annual earnings are now projected at $0.20 per share in FY23 compared to an adjusted loss of -$0.51 a share last year. Even better, FY24 earnings are expected to soar another 111% to $0.42 per share. Total sales are forecasted to climb 30% this year to $938.07 million versus $720.20 million in 2022. Fiscal 2024 sales are projected to jump another 19% to $1.12 billion. More importantly, earnings estimate revisions have catapulted for Procore over the last 30 days as the company was not expected to turn a profit so soon.
Image Source: Zacks Investment Research
Takeaway
The Zacks Technology Services Industry and the broader Zacks Business Services Sector continue to be a space for investors to find growth with Instructure, Inter&Co, and Procore’s stock being the latest to consider after being added to the Zacks Rank #1 (Strong Buy) list this week.
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Technology Services Stocks Highlight New Additions to the Zacks Strong Buy List
The broader Zacks Business Services Sector now has 21 stocks on the coveted Zacks Rank #1 (Strong Buy) list with a total of 232 stocks currently having the bullish ranking.
More intriguing, more than a third of these highly ranked business services stocks come from the Zacks Technology Services Industry which is in the top 34% of over 250 Zacks industries. To that point, The Zacks Technology Services Industry’s total return including dividends is +28% this year to impressively top the S&P 500’s +18% and is roughly on par with the Nasdaq’s +31%.
Image Source: Zacks Investment Research
Attributing to the industry’s strong performance is that out of 167 stocks, the average Projected EPS growth in 2023 is at 35.78% which impressively trumps the S&P 500’s 5.42%. Notably, here are three Technology Services Industry stocks that were added to the Zacks Rank #1 (Strong Buy) list this week as their outlooks have become very compelling.
Image Source: Zacks Investment Research
A Growing Online Education Platform
With annual EPS forecasted to rise 10% in fiscal 2023 and jump another 14% in FY24 to $0.97 a share, education technology company Instructure (INST - Free Report) got the nod for a strong buy this week. This is largely predicated on the trend of earnings estimate revisions after Instructure reassuringly surpassed its third quarter top and bottom line expectations in late October.
In correlation with such, FY23 and FY24 EPS estimates have risen 7% and 4% over the last 30 days respectively. It’s also noteworthy that Instructure’s total sales are now anticipated to be up 11% this year and rise another 9% in FY24 to $578.76 million. Instructure's stock has become very appealing to investors in regard to the growth of online education platforms with the company delivering a learning management system (LMS), assessments for learning, and actionable analytics.
Image Source: Zacks Investment Research
An Intriguing Super App
After going public in 2022, the expansion of Brazilian-based Inter&Co I(NTR - Free Report) is hard to overlook at the moment. Inter&Co offers a global payment platform with the company’s “super app” providing a range of services in banking, investments, credit, insurance, and cross-border services.
More recently reporting its Q3 results last Monday, earnings of $0.05 per share slightly topped estimates of $0.04 a share and climbed from an adjusted loss of -$0.01 a share in the prior-year quarter. Quarterly sales of $259.32 million came in 16% above estimates and soared 60% from $162.33 million a year ago.
With a record of 1 million new customers added during Q3, Inter&Co now has more than 29 million customers and experienced a 43% year-over-year increase in transactional volume. High double-digit percentage growth is forecasted on Inter&Co’s top and bottom lines in FY23 and FY24 with it being noteworthy that INTR shares have skyrocketed over +100% this year and are currently at 52-week highs of around $5 a share. Still, the risk to reward is favorable considering Inter&Co is starting to move past the probability line with EPS now projected at $0.15 a share this year and $0.33 per share in FY24.
Image Source: Zacks Investment Research
An Alternative Way to Capitalize on Construction-Related Activities
One way to capitalize on the innovation and technological advancement among construction-related activities is through Procore Technologies (PCOR - Free Report) which provides construction management software.
Procore went public in 2021, and the growing niche for its services has been underestimated recently with the company blasting Q3 earnings expectations earlier in the month. Third-quarter earnings of $0.09 per share intriguingly surpassed estimates that called for an adjusted loss of -$0.06 a share. Plus, this soared from an adjusted loss of -$0.09 per share a year ago with Q3 sales of $247.91 million surpassing estimates by 6% and climbing 33% from $186.43 million in the prior year quarter.
Image Source: Zacks Investment Research
Procore’s annual earnings are now projected at $0.20 per share in FY23 compared to an adjusted loss of -$0.51 a share last year. Even better, FY24 earnings are expected to soar another 111% to $0.42 per share. Total sales are forecasted to climb 30% this year to $938.07 million versus $720.20 million in 2022. Fiscal 2024 sales are projected to jump another 19% to $1.12 billion. More importantly, earnings estimate revisions have catapulted for Procore over the last 30 days as the company was not expected to turn a profit so soon.
Image Source: Zacks Investment Research
Takeaway
The Zacks Technology Services Industry and the broader Zacks Business Services Sector continue to be a space for investors to find growth with Instructure, Inter&Co, and Procore’s stock being the latest to consider after being added to the Zacks Rank #1 (Strong Buy) list this week.