Back to top

Image: Bigstock

Zacks Investment Ideas feature highlights: Airbnb, Arista Networks and MSCI

Read MoreHide Full Article

For Immediate Release

Chicago, IL – February 22, 2023 – Today, Zacks Investment Ideas feature highlights Airbnb (ABNB - Free Report) , Arista Networks (ANET - Free Report) and MSCI Inc. (MSCI - Free Report) .

Don't Ignore These 3 Company Growth Trajectories

There are many types of investing styles deployed within the market. Some investors prefer to target income, some prefer value, and some prefer to target growth.

Of course, those who gravitate toward the growth investing style commonly target technology companies, as their long-term potential is hard to ignore.   

And as we've witnessed in 2023, technology stocks have finally found buyers following a brutal 2022.

Three stocks from the Zacks Computer and Technology sector –Airbnb, Arista Networks and MSCI Inc. – are all expected to witness solid top and bottom line growth in their respective fiscal years.

Let's take a closer look at each one.

Airbnb

Airbnb is a leading platform for unique stays and experiences, providing a marketplace for connecting hosts and guests online or through mobile devices. Analysts have taken a bullish stance on the company's earnings outlook, pushing ABNB into a Zacks Rank #1 (Strong Buy).

It's hard to ignore the company's growth profile, with earnings forecasted to climb 21% in its current fiscal year (FY23) and a further 20% in FY24.

The projected earnings growth comes on top of forecasted year-over-year revenue upticks of 14.9% in FY23 and 15.3% in FY24.

And for the cherry on top, Airbnb posted strong quarterly results in its latest release, exceeding the Zacks Consensus EPS Estimate by nearly 80% and reporting revenue 2% ahead of expectations.

The market liked the results, with ABNB shares gaining more than 13% in the following trading session.

Arista Networks

Arista Networks provides cloud networking solutions for data centers and cloud computing environments. The company's earnings outlook has improved across all timeframes, landing ANET into a Zacks Rank #2 (Buy).

It's impossible to ignore the company's growth trajectory, with the Zacks Consensus EPS Estimate of $5.76 for its current fiscal year (FY23) indicating an improvement of 26% year-over-year.

And in FY24, the company's earnings are forecasted to grow a further 12%.

ANET shares trade at a 26.9X forward earnings multiple, undoubtedly on the higher end of the spectrum but well below the 34.4X five-year median.

Tech stocks are generally pricey, as that's the price investors pay for growth.

MSCI Inc.

MSCI is a leading provider of critical decision support tools and services for the global investment community, widely known for ESG research and ratings. Currently, the company sports a Zacks Rank #2 (Buy).

The company's growth outlook is bright, with estimates forecasting year-over-year earnings growth of 12% in its current fiscal year (FY23) and 16% in FY24.

Top line growth is also apparent, with the company expected to witness 10% year-over-year sales growth in FY23 and 11.3% in FY24.

In addition, MSCI shares provide exposure to tech paired with an income stream; the company's annual dividend currently yields 1%, a tick above the Zacks Computer and Technology sector average.

Impressively, the company's payout has grown by nearly 25% over the last five years.

Bottom Line

Investors have their preferences within the market and for understandable reasons. While some reap a steady income stream, others are rewarded with explosive growth.

And for those interested in companies growing their top and bottom lines at rapid paces, all three above – Airbnb, Arista Networks and MSCI – are forecasted to do precisely that.

In addition, all three sport a favorable Zacks Rank, indicating that their near-term business outlooks have shifted positively.

Why Haven't You Looked at Zacks' Top Stocks?

Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.

See Stocks Free >>

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com

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/performancefor information about the performance numbers displayed in this press release.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


MSCI Inc (MSCI) - free report >>

Arista Networks, Inc. (ANET) - free report >>

Airbnb, Inc. (ABNB) - free report >>

Published in