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We love earnings season here at Zacks! Not only is it the time for companies to level with investors, but the analyst reactions to these reports form the foundation of our Zacks Rank. It's even better this particular earnings season, since the growth picture is improving and expected to continue doing so into the future.
But as even the most novice of investors know, earnings season is ultimately unpredictable...and not just the results but the reactions to reports as well. If you're looking for earnings season superstars, than Zacks' EPS Growth, Revisions & Positive Surprises screen is a great place to look. As the name implies, this screen seeks out Zacks Rank #1s (Strong Buys) with positive surprises and upward earnings estimates. These stocks are the best positioned to outperform in the near and longer terms.
Take a look at three stocks that have passed this screen below. Zacks Premium members already have access to this screen’s parameters and stocks, so you can take a look at the other names on the list. If you're not a member, this would be a good time to sign up.
Alibaba (BABA - Free Report) has already conquered the e-commerce marketplace in China...and it is far from done. Analysts just loved its fiscal third-quarter report and believe it has the foundation all set to continue growing and making money for investors. BABA surpassed expectations at every turn in the report, including a positive EPS surprise of more than 28%. It was the third straight positive surprise for BABA, which has amassed an average beat of nearly 13% over the last four reports. But for this growing retail colossus that’s been called “a mixture of Ebay and Amazon”, perhaps the most important factor was that revenues of US$7.67 billion soared by 55.3% sequentially and 54.1% annually. A strong core e-commerce business mixed with big plans for cloud computing services led to these solid results.
But what we're really concerned about with this screen is how Wall Street reacts to strong quarterly reports. In BABA's case, five covering analysts raised their estimates since the late January report, bringing about dramatic increases in expectations. The Zacks Consensus Estimate for this fiscal year (ending in March) is now 23.2% higher than where it was 30 days ago, while next fiscal year (ending March 2018) has jumped 23.4% and is forecasting year-over-year improvement of more than 19%. China is the world's most populous country with more than 1.3 billion people, and BABA serves about 80% of them with plans to expand into even more rural areas. That's enough of a reason for analysts to feel pretty good about its future, but they are also heartened by its desire to develop new products, its strong financial position and its hopes to grow internationally.
Alibaba Group Holding Limited Price, Consensus and EPS Surprise
Why wouldn’t you want to be in the market right now? Employment continues to increase and recent data shows a fundamentally solid economy. Sure, President Trump is a bit of a wild card, but the market may end up loving the guy if his pro-growth promises lead to an increased appetite for risk. With people feeling more comfortable in investing, CBOE Holdings (CBOE - Free Report) announced another solid quarterly report last night. Earnings per share, excluding items, for the country's leading options exchange came to 63 cents per share, topping the Zacks Consensus Estimate by 5% and bettering last year by 4 cents. Total operating revenue climbed 5% year over year to $163.2 million, which also was ahead of the Zacks Consensus Estimate. This improvement can be traced back to a $4.6 million increase in transaction fees and a $1.5 million increase in market data fees. The top and bottom lines for the full year also surpassed our expectations.
The past two months have seen double-digit increases in earnings estimates. The Zacks Consensus Estimate for this year is up 10.8% in that timeframe while next-year’s estimate has jumped 15.3%. Also, analysts currently expect earnings growth of 18% in 2018 over 2017. Despite strong quarterly reports and increased transaction fees, CBOE's planned acquisition of Bats Global Markets is also seen as a positive. This $3.2 billion cash-stock deal would expand the company's product portfolio by adding U.S. and European cash equities, Global ETPs and Global FX. "We finished 2016 on a strong note and enter 2017 excited about expanding our sources of value creation and the diversification of our earnings profile we expect to achieve through our acquisition of Bats,” said Executive VP & CFO Alan J. Dean.
CBOE Holdings, Inc. Price, Consensus and EPS Surprise
It's really not fair to compare Dave & Buster's (PLAY - Free Report) to your normal company in the retail-restaurants industry. When you're at Cracker Barrel or Panera Bread, you can't take a break from your meal to go play a video game, or some pool, or that metal claw thing that gets you all excited to win a cheap little stuffed animal. But that's just what you get at PLAY, and it's a big reason why this company seems immune from the low rank of its industry.
In December, earnings per share for its fiscal third quarter came to 25 cents per share, which more than doubled the year-ago result and nearly doubled expectations. The result beat the Zacks Consensus Estimate by 92.3%. It hasn't missed since going public and has put together an average beat of 37.8% in the last four quarters. Total revenues climbed 19% to $228.7 million. PLAY also increased its guidance.
Earnings estimates lifted off in the response to the quarter as nearly every covering analyst raided their expectations. The Zacks Consensus Estimate for this fiscal year (ended January 2017) advanced 6.2% from two months ago, while the expectation for next fiscal year (ending January 2018) climbed 5.8% in that time. For the moment, analysts expect 15.6% EPS growth for next year over this year. Looking forward, PLAY intends to open 11 to 12 new stores in fiscal 2017.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Image: Bigstock
3 Estimate-Beating Stocks to Keep On Your Radar
We love earnings season here at Zacks! Not only is it the time for companies to level with investors, but the analyst reactions to these reports form the foundation of our Zacks Rank. It's even better this particular earnings season, since the growth picture is improving and expected to continue doing so into the future.
But as even the most novice of investors know, earnings season is ultimately unpredictable...and not just the results but the reactions to reports as well. If you're looking for earnings season superstars, than Zacks' EPS Growth, Revisions & Positive Surprises screen is a great place to look. As the name implies, this screen seeks out Zacks Rank #1s (Strong Buys) with positive surprises and upward earnings estimates. These stocks are the best positioned to outperform in the near and longer terms.
Take a look at three stocks that have passed this screen below. Zacks Premium members already have access to this screen’s parameters and stocks, so you can take a look at the other names on the list. If you're not a member, this would be a good time to sign up.
Alibaba (BABA - Free Report)
Alibaba (BABA - Free Report) has already conquered the e-commerce marketplace in China...and it is far from done. Analysts just loved its fiscal third-quarter report and believe it has the foundation all set to continue growing and making money for investors. BABA surpassed expectations at every turn in the report, including a positive EPS surprise of more than 28%. It was the third straight positive surprise for BABA, which has amassed an average beat of nearly 13% over the last four reports. But for this growing retail colossus that’s been called “a mixture of Ebay and Amazon”, perhaps the most important factor was that revenues of US$7.67 billion soared by 55.3% sequentially and 54.1% annually. A strong core e-commerce business mixed with big plans for cloud computing services led to these solid results.
But what we're really concerned about with this screen is how Wall Street reacts to strong quarterly reports. In BABA's case, five covering analysts raised their estimates since the late January report, bringing about dramatic increases in expectations. The Zacks Consensus Estimate for this fiscal year (ending in March) is now 23.2% higher than where it was 30 days ago, while next fiscal year (ending March 2018) has jumped 23.4% and is forecasting year-over-year improvement of more than 19%. China is the world's most populous country with more than 1.3 billion people, and BABA serves about 80% of them with plans to expand into even more rural areas. That's enough of a reason for analysts to feel pretty good about its future, but they are also heartened by its desire to develop new products, its strong financial position and its hopes to grow internationally.
Alibaba Group Holding Limited Price, Consensus and EPS Surprise
Alibaba Group Holding Limited Price, Consensus and EPS Surprise | Alibaba Group Holding Limited Quote
CBOE Holdings (CBOE - Free Report)
Why wouldn’t you want to be in the market right now? Employment continues to increase and recent data shows a fundamentally solid economy. Sure, President Trump is a bit of a wild card, but the market may end up loving the guy if his pro-growth promises lead to an increased appetite for risk. With people feeling more comfortable in investing, CBOE Holdings (CBOE - Free Report) announced another solid quarterly report last night. Earnings per share, excluding items, for the country's leading options exchange came to 63 cents per share, topping the Zacks Consensus Estimate by 5% and bettering last year by 4 cents. Total operating revenue climbed 5% year over year to $163.2 million, which also was ahead of the Zacks Consensus Estimate. This improvement can be traced back to a $4.6 million increase in transaction fees and a $1.5 million increase in market data fees. The top and bottom lines for the full year also surpassed our expectations.
The past two months have seen double-digit increases in earnings estimates. The Zacks Consensus Estimate for this year is up 10.8% in that timeframe while next-year’s estimate has jumped 15.3%. Also, analysts currently expect earnings growth of 18% in 2018 over 2017. Despite strong quarterly reports and increased transaction fees, CBOE's planned acquisition of Bats Global Markets is also seen as a positive. This $3.2 billion cash-stock deal would expand the company's product portfolio by adding U.S. and European cash equities, Global ETPs and Global FX. "We finished 2016 on a strong note and enter 2017 excited about expanding our sources of value creation and the diversification of our earnings profile we expect to achieve through our acquisition of Bats,” said Executive VP & CFO Alan J. Dean.
CBOE Holdings, Inc. Price, Consensus and EPS Surprise
CBOE Holdings, Inc. Price, Consensus and EPS Surprise | CBOE Holdings, Inc. Quote
Dave & Buster's (PLAY - Free Report)
It's really not fair to compare Dave & Buster's (PLAY - Free Report) to your normal company in the retail-restaurants industry. When you're at Cracker Barrel or Panera Bread, you can't take a break from your meal to go play a video game, or some pool, or that metal claw thing that gets you all excited to win a cheap little stuffed animal. But that's just what you get at PLAY, and it's a big reason why this company seems immune from the low rank of its industry.
In December, earnings per share for its fiscal third quarter came to 25 cents per share, which more than doubled the year-ago result and nearly doubled expectations. The result beat the Zacks Consensus Estimate by 92.3%. It hasn't missed since going public and has put together an average beat of 37.8% in the last four quarters. Total revenues climbed 19% to $228.7 million. PLAY also increased its guidance.
Earnings estimates lifted off in the response to the quarter as nearly every covering analyst raided their expectations. The Zacks Consensus Estimate for this fiscal year (ended January 2017) advanced 6.2% from two months ago, while the expectation for next fiscal year (ending January 2018) climbed 5.8% in that time. For the moment, analysts expect 15.6% EPS growth for next year over this year. Looking forward, PLAY intends to open 11 to 12 new stores in fiscal 2017.
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise
Dave & Buster's Entertainment, Inc. Price, Consensus and EPS Surprise | Dave & Buster's Entertainment, Inc. Quote
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more.
Click here for a peek at this private information >>