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The Zacks Analyst Blog Highlights: Paycom Software, NVIDIA, Intuit, QUALCOMM and Microchip Technology
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For Immediate Release
Chicago, IL – November 4, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Paycom Software, Inc. (PAYC - Free Report) , NVIDIA Corporation (NVDA - Free Report) , Intuit Inc. (INTU - Free Report) , QUALCOMM Incorporated (QCOM - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Tech Stocks Poised to Topple Estimates This Earnings Season
The coronavirus pandemic has had a sector-wide impact across the globe. However, the U.S. tech sector has been more resilient compared with the other sectors, primarily owing to the ongoing digital transformation and impressive prospects.
As of Oct 30, 79.7% of the technology sector’s market capitalization in the S&P 500 index had reported third-quarter results. Total earnings for these Tech companies are up 10.6% from the same period last year on 5.8% higher revenues, with 95.3% beating EPS estimates and 90.7% surpassing revenue projections.
On the contrary, 320 S&P 500 members or 64% of the index’s total membership had reported third-quarter results as of Oct 30. Total earnings (or aggregate net income) for these 320 companies are down 7.2% from the same period last year on 4.3% lower revenues, with 86.6% beating EPS estimates and 77.8% exceeding revenue projections.
What’s Driving the Tech Sector’s Outperformance?
The COVID-19 pandemic has, surprisingly, opened up newer avenues of growth for several industries in the broader tech sector. Thanks to the global lockdown, the adoption rate of Internet-based services and apps has been increasing rapidly as people are compelled to stay indoors.
Moreover, the work-from-home wave is bolstering demand for advanced technology-based virtual meetings and conference tools. Additionally, the work-and-learn-from-home necessity has propelled demand for PCs, notebooks, peripheral accessories, and cloud storage.
All these, in turn, are aiding growth for high-speed Internet services. Apart from this, the rising demand for robust communication networks is another positive. Further, the growing proliferation of AI technology, and cloud computing products and services in managing this pandemic situation is a tailwind. These trends are stoking demand for semiconductor chips.
Contactless payment and delivery services also gained significant traction amid the coronavirus crisis. In addition, social-media companies registered growth in traffic and user engagement as more and more people stayed indoors due to the lockdowns and adherence to the shelter-at-home guidelines.
All these positives will encourage investors to bet on tech stocks.
How to Make the Right Pick?
With the presence of several industry participants, finding the right technology stocks with the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes this task fairly simple.
You could narrow down your choices by looking at the stocks that have the perfect combination of the two key elements: a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for determining the stocks that have the maximum chances of beating estimates at their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this apt mix of ingredients, the odds of a positive earnings surprise are as high as 70%.
Prominent Picks
Given below are five technology stocks that have favorable combinations to beat on earnings this reporting cycle:
Oklahoma City, OK-headquartered Paycom Software is slated to report third-quarter 2020 numbers on Nov 4. The company has an Earnings ESP of +3.67% and carries a Zacks Rank #2 currently. The Zacks Consensus Estimate for earnings has remained unchanged at 56 cents per share in the past 30 days.
Santa Clara, CA-headquartered NVIDIA is scheduled to release third-quarter fiscal 2021 results on Nov 18. The company has an Earnings ESP of +1.75% and currently holds a Zacks Rank #2. The Zacks Consensus Estimate for quarterly earnings has been revised upward by a penny to $2.57 per share over the past month.
Mountain View, CA-based Intuit is set to announce first-quarter fiscal 2021 figures on Nov 19. Currently, the company has an Earnings ESP of +39.88% and carries a Zacks Rank of 3. The Zacks Consensus Estimate for fiscal first-quarter earnings has moved south by a couple of cents to 38 cents in 30 days’ time.
San Diego, CA-headquartered QUALCOMM is scheduled to report fourth-quarter fiscal 2020 numbers on Nov 4. At present, the company has an Earnings ESP of +5.26% and carries a Zacks Rank #3. The Zacks Consensus Estimate for quarterly earnings has been revised upward by a penny to $1.19 per share in the past 30 days.
Chandler, Arizona-headquartered Microchip Technology will release second-quarter fiscal 2021 results on Nov 5. The company has an Earnings ESP of +4.01% and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings has remained unrevised at $1.42 per share over the past 30 days.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Paycom Software, NVIDIA, Intuit, QUALCOMM and Microchip Technology
For Immediate Release
Chicago, IL – November 4, 2020 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Paycom Software, Inc. (PAYC - Free Report) , NVIDIA Corporation (NVDA - Free Report) , Intuit Inc. (INTU - Free Report) , QUALCOMM Incorporated (QCOM - Free Report) and Microchip Technology Incorporated (MCHP - Free Report) .
Here are highlights from Tuesday’s Analyst Blog:
5 Tech Stocks Poised to Topple Estimates This Earnings Season
The coronavirus pandemic has had a sector-wide impact across the globe. However, the U.S. tech sector has been more resilient compared with the other sectors, primarily owing to the ongoing digital transformation and impressive prospects.
As of Oct 30, 79.7% of the technology sector’s market capitalization in the S&P 500 index had reported third-quarter results. Total earnings for these Tech companies are up 10.6% from the same period last year on 5.8% higher revenues, with 95.3% beating EPS estimates and 90.7% surpassing revenue projections.
On the contrary, 320 S&P 500 members or 64% of the index’s total membership had reported third-quarter results as of Oct 30. Total earnings (or aggregate net income) for these 320 companies are down 7.2% from the same period last year on 4.3% lower revenues, with 86.6% beating EPS estimates and 77.8% exceeding revenue projections.
What’s Driving the Tech Sector’s Outperformance?
The COVID-19 pandemic has, surprisingly, opened up newer avenues of growth for several industries in the broader tech sector. Thanks to the global lockdown, the adoption rate of Internet-based services and apps has been increasing rapidly as people are compelled to stay indoors.
Moreover, the work-from-home wave is bolstering demand for advanced technology-based virtual meetings and conference tools. Additionally, the work-and-learn-from-home necessity has propelled demand for PCs, notebooks, peripheral accessories, and cloud storage.
All these, in turn, are aiding growth for high-speed Internet services. Apart from this, the rising demand for robust communication networks is another positive. Further, the growing proliferation of AI technology, and cloud computing products and services in managing this pandemic situation is a tailwind. These trends are stoking demand for semiconductor chips.
Contactless payment and delivery services also gained significant traction amid the coronavirus crisis. In addition, social-media companies registered growth in traffic and user engagement as more and more people stayed indoors due to the lockdowns and adherence to the shelter-at-home guidelines.
All these positives will encourage investors to bet on tech stocks.
How to Make the Right Pick?
With the presence of several industry participants, finding the right technology stocks with the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes this task fairly simple.
You could narrow down your choices by looking at the stocks that have the perfect combination of the two key elements: a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP is our proprietary methodology for determining the stocks that have the maximum chances of beating estimates at their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.
Our research shows that for stocks with this apt mix of ingredients, the odds of a positive earnings surprise are as high as 70%.
Prominent Picks
Given below are five technology stocks that have favorable combinations to beat on earnings this reporting cycle:
Oklahoma City, OK-headquartered Paycom Software is slated to report third-quarter 2020 numbers on Nov 4. The company has an Earnings ESP of +3.67% and carries a Zacks Rank #2 currently. The Zacks Consensus Estimate for earnings has remained unchanged at 56 cents per share in the past 30 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Santa Clara, CA-headquartered NVIDIA is scheduled to release third-quarter fiscal 2021 results on Nov 18. The company has an Earnings ESP of +1.75% and currently holds a Zacks Rank #2. The Zacks Consensus Estimate for quarterly earnings has been revised upward by a penny to $2.57 per share over the past month.
Mountain View, CA-based Intuit is set to announce first-quarter fiscal 2021 figures on Nov 19. Currently, the company has an Earnings ESP of +39.88% and carries a Zacks Rank of 3. The Zacks Consensus Estimate for fiscal first-quarter earnings has moved south by a couple of cents to 38 cents in 30 days’ time.
San Diego, CA-headquartered QUALCOMM is scheduled to report fourth-quarter fiscal 2020 numbers on Nov 4. At present, the company has an Earnings ESP of +5.26% and carries a Zacks Rank #3. The Zacks Consensus Estimate for quarterly earnings has been revised upward by a penny to $1.19 per share in the past 30 days.
Chandler, Arizona-headquartered Microchip Technology will release second-quarter fiscal 2021 results on Nov 5. The company has an Earnings ESP of +4.01% and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for earnings has remained unrevised at $1.42 per share over the past 30 days.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
Download Marijuana Moneymakers FREE >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.