The Wright Brothers were credited with the first flight in 1903. Only 66 years later, we were walking on the moon. Some developments are so grand in scale, they defy the very gravity widely believed to weigh on their possibilities. Though not without its crashes, internet technology continues providing lift to profits in ways never imagined.
The Internet Software and Services sector of the Zacks Industry Rank list gained 8 positions last week with a couple of key estimate revisions. The category of 14 companies now holds a rank of 33 out of 260 sectors. With 20 positive earnings estimate revisions compared to only 3 negative revisions, an upward draft has given rise to an average positive Earnings per Share (EPS) surprise of +36%.
Connectivity is the propeller behind this momentum, allowing innovation to travel beyond borders and work for those who need it worldwide, and are willing to pay for it, worldwide. As more technology finds its way into new hands, more possibilities exist to broaden a market.
The two following companies have been upgraded this week to a Zacks Rank #1 (Strong Buy). An upgrade in rank from a Buy or Hold to a Strong Buy is noteworthy and may foretell the performance of a stock in response to future positive earnings estimate revisions. Keeping sector-wide trends on your radar can be pivotal in understanding the trade winds of future value. Each of these companies also hold a Zacks Recommendation of “Outperform."
While the P/E in these instances may be high, history should tell us that the sky is certainly not the limit.
Qihoo 360 Tech Co Ltd (QIHU)
QIHU was upgraded to a Zacks Rank #1 (Strong Buy) last week from #3 (Hold). Its next expected earnings report is on November 18, 2013.
Qihoo 360 Technology Co Ltd. offers Internet and mobile security products. The company also provides advertising services by offering marketing opportunities through its mobile-search platform. With the massive proliferation of technology in the East, where it holds a market share advantage, Qihoo has been responding to strong investor confidence with increased profits.
It’s most recent earning’s surprise was 100%.
SMART Tech Cl A (SMT)
SMT is a Zacks Rank #1 (Strong Buy). It moved up from a Zacks Rank #3 (Hold) last week as well. This company reports quarterly earnings on November 6, 2013.
SMART Technologies Inc. designs, develops and sells interactive technology products and solutions for the education, business and government sectors. The company is a global provider of interactive whiteboards and complementary solutions.
Its most recent earnings surprise was +200%.