On Aug 24, Zacks Investment Research upgraded Information Services Group, Inc. (III - Free Report) to Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Information Services Group has been witnessing rising earnings estimates on the back of strong second-quarter 2013 results and an improved guidance for fiscal 2013. Moreover, this well-known technology insights, market intelligence and advisory services company delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of a whopping 150.0%.
Information ServicesGroup reported second-quarter (ended Jun 30) results on Aug 6. Adjusted earnings per share came in at 9 cents, surpassing the Zacks Consensus Estimate of 4 cents and the year-ago figure of 6 cents by 50%.
The company reported all-time record quarterly revenues of $55.6 million, up 10% year over year, led by double-digit growth in the Americas and Europe. Moreover, the robust performance was driven by Information Services Group’s strategic investments to expand and integrate its portfolio of products and services. The company also signed a record multi-year managed services contract worth $14 million.
Based on healthy quarterly results, Information Services Group raised its full-year 2013 guidance and expects revenues to be in the range of $205–$212 million with adjusted Earnings before Interest Tax Depreciation and Allowance (EBITDA) of $21–$23 million.
The Zacks Consensus Estimate for 2013 increased 23.1% to 16 cents per share as two of three estimates were revised upwards over the last 30 days.For 2014, the Zacks Consensus Estimate rose 21% to 23 cents in the last 30 days.
Other Stocks to Consider
The following stocks with favorable Zacks Rank are also performing well and are worth considering.
1) Barrett Business Services Inc. carries a Zacks Rank #1 (Strong Buy)
2) Cap Gemini S.A. holds a Zacks Rank #1 (Strong Buy)
3) Booz Allen Hamilton Holding Corporation(BAH - Free Report) carries a Zacks Rank #1 (Strong Buy)