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Strong Moves From Recent IPO's

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It seems the press loves a good IPO more than investors, except of course, when the IPO runs wild.  This hasn’t exactly been the case for the biggest IPO of the year Snap Inc (SNAP).  That said, I know there are several other recent deals that should be on your radar screen.

Let’s take a look at some names that have been moving higher since the initial offering, so let’s take a look at a few and why they have the Zacks Rank they do.

Big Mover, Bad Rank

The main reason I am writing this article is for this particular stocks.  Impinj (PI - Free Report) is a Zacks Rank #5 (Strong Sell) but has roared higher by about 50% since early April.  This stock is about a year old and has missed the Zacks Consensus Estimate in each of the last three reports.

The more recent earnings report on May 4 was a miss of $0.05 for a 250% negative earnings surprise.  We at Zacks view stock-based compensation differently than the broader Wall Street view.  For that reason, Wall Street has seen 4 straight beats.

PI is up big today, but estimates have been slipping over time.  The Zacks Consensus Estimate for 2017 was calling for EPS of $0.29 in January and that number skipped lower to $0.27 in April.  The estimate currently stands at $0.25.

Follow Brian Bolan on Twitter: @BBolan1

Monster Growth

There have only been two reports for Ichor Corporation (ICHR) but in each of them the company has topped revenue expectations and posted year over year growth of more than 100%. 

The company most recently reported on May 11 and topped the Zacks Consensus Estimate by a penny. Estimates moved up significantly following the beat, with the Zacks Consensus Estimate leaping from $1.54 in April to the current level of $2.05.  That a monster move of more than 33%!

ICHR has a wonderful valuation as well, a 11x forward multiple is less than half the 23x industry average.  The price to book multiple and price to sales multiple also come in well below the industry average.  This Zacks Rank #1 (Strong Buy) looks like it has what it takes to continue on its upward move.



Big Trader

A recent beat sent shares of The Trade Desk (TTD) soaring, but it looks like this stock could still be moving higher.  The company has 3 reports so far and all of them are solid beats on top and bottom.  The most recent beat sent shares higher by more than 29% in the session following the release.

This Zacks Rank #2 (Buy) stock saw estimates jump in a big way following the report.  The Zacks Consensus Estimate for 2017 moved from $0.74 to $0.91 on the heels of the most recent earnings report.

The valuation is a little stiff, with a 59x forward multiple and metrics that are firmly above the industry average.  Analysts are expecting 46% revenue growth this year and that is 5 times more than the industry average, so clearly investors are willing to pay up for this sort of growth.


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