We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Analyst Blog Highlights Amplitude, Aris Water Solutions and PagSeguro Digital
Read MoreHide Full Article
For Immediate Release
Chicago, IL – May 9, 2023 – 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: Amplitude, Inc. (AMPL - Free Report) , Aris Water Solutions, Inc. (ARIS - Free Report) and PagSeguro Digital Ltd. (PAGS - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Business Services Firms Poised to Beat Earnings Estimates This Quarter
The Zacks Business Services sector is expected to have performed well in the first quarter of 2023, driven by a strong demand environment and improving supply chains. However, inflationary pressure and labor market constraints remained headwinds.
Per the latest Earnings Trend report, earnings of S&P 500 members of the business services sector that have reported results this season grew 1.3% year over year on 5.7% revenue growth, with 87% of the companies beating EPS estimates and 82.6% topping sales projections.
Total quarterly earnings of the S&P 500 members of the sector are currently anticipated to display 1.4% year-on-year growth. Revenues are likely to witness a 6.1% rise.
Let us discuss the factors that are expected to have played a key role in shaping the performance of business services companies in the quarter.
Key Factors to Consider for Service Stocks
Economic activities in the non-manufacturing sector were in good shape in the quarter. The Services PMI measured by the Institute for Supply Management was 51.9% in April, 0.7% higher than the March reading of 51.2%, indicating expansion for the fourth consecutive month.
Sector-specific factors that acted as tailwinds in the quarter are the essentiality of certain services like waste management, the rise in demand for risk mitigation and consulting services, increased expertise in improving operational efficiency and lower costs, successful work-from-home models and digital transformation.
Services pertaining to transportation & warehousing; accommodation & food; utilities; construction; rental & leasing; health care & social assistance; education; information; professional, scientific & technical stayed healthy in the quarter.
Stocks Poised to Beat This Season
With the existence of a number of players in the sector, finding the right business services stocks that have the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes it fairly simple.
You could narrow down the list of choices by looking at stocks that have the combination of 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. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise in 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 combination, the chance of an earnings surprise is as high as 70%.
Here are our picks.
Amplitude, Inc.: The company provides a digital analytics platform for the analysis of customer behavior within digital products globally.
Amplitude is set to report its first-quarter 2023 results on May 9. It has an Earnings ESP of +21.88% and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter has moved 17% north in the past 60 days.
The consensus mark for the top line in the to-be-reported quarter is pegged at $65 million, indicating year-over-year growth of 22.5%. The consensus mark for the bottom line is pegged at a loss of 6 cents, indicating a decrease of 14.3% in loss on an year-over-year basis.
Aris Water Solutions, Inc. : is an environmental infrastructure and solutions company that provides water handling and recycling solutions.
Aris Water is scheduled to report its first-quarter 2023 results on May 8. It has an Earnings ESP of +11.12% and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter has moved 52.4% south in the past 60 days.
The consensus mark for revenues in the to-be-reported quarter is pegged at $81.9 million, indicating year-over-year growth of 15.4%. The consensus mark for the bottom line is pegged at 10 cents, indicating a decrease of 84.6% on an year-over-year basis.
PagSeguro Digital Ltd.: The company is a provider of financial technology solutions and services.
PagSeguro is expected to report its first-quarter 2023 results soon. It has an Earnings ESP of +3.70% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter has remained unchanged in the past 60 days.
The consensus mark for revenues in the to-be-reported quarter is pegged at $697.5 million, indicating year-over-year growth of 6.4%. The consensus mark for the bottom line is pegged at 20 cents, indicating a decrease of 4.8% on a year-over-year basis.
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.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Zacks Analyst Blog Highlights Amplitude, Aris Water Solutions and PagSeguro Digital
For Immediate Release
Chicago, IL – May 9, 2023 – 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: Amplitude, Inc. (AMPL - Free Report) , Aris Water Solutions, Inc. (ARIS - Free Report) and PagSeguro Digital Ltd. (PAGS - Free Report) .
Here are highlights from Monday’s Analyst Blog:
3 Business Services Firms Poised to Beat Earnings Estimates This Quarter
The Zacks Business Services sector is expected to have performed well in the first quarter of 2023, driven by a strong demand environment and improving supply chains. However, inflationary pressure and labor market constraints remained headwinds.
Per the latest Earnings Trend report, earnings of S&P 500 members of the business services sector that have reported results this season grew 1.3% year over year on 5.7% revenue growth, with 87% of the companies beating EPS estimates and 82.6% topping sales projections.
Total quarterly earnings of the S&P 500 members of the sector are currently anticipated to display 1.4% year-on-year growth. Revenues are likely to witness a 6.1% rise.
Let us discuss the factors that are expected to have played a key role in shaping the performance of business services companies in the quarter.
Key Factors to Consider for Service Stocks
Economic activities in the non-manufacturing sector were in good shape in the quarter. The Services PMI measured by the Institute for Supply Management was 51.9% in April, 0.7% higher than the March reading of 51.2%, indicating expansion for the fourth consecutive month.
Sector-specific factors that acted as tailwinds in the quarter are the essentiality of certain services like waste management, the rise in demand for risk mitigation and consulting services, increased expertise in improving operational efficiency and lower costs, successful work-from-home models and digital transformation.
Services pertaining to transportation & warehousing; accommodation & food; utilities; construction; rental & leasing; health care & social assistance; education; information; professional, scientific & technical stayed healthy in the quarter.
Stocks Poised to Beat This Season
With the existence of a number of players in the sector, finding the right business services stocks that have the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes it fairly simple.
You could narrow down the list of choices by looking at stocks that have the combination of 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. You can see the complete list of today's Zacks #1 Rank stocks here.
Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise in 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 combination, the chance of an earnings surprise is as high as 70%.
Here are our picks.
Amplitude, Inc.: The company provides a digital analytics platform for the analysis of customer behavior within digital products globally.
Amplitude is set to report its first-quarter 2023 results on May 9. It has an Earnings ESP of +21.88% and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter has moved 17% north in the past 60 days.
The consensus mark for the top line in the to-be-reported quarter is pegged at $65 million, indicating year-over-year growth of 22.5%. The consensus mark for the bottom line is pegged at a loss of 6 cents, indicating a decrease of 14.3% in loss on an year-over-year basis.
Aris Water Solutions, Inc. : is an environmental infrastructure and solutions company that provides water handling and recycling solutions.
Aris Water is scheduled to report its first-quarter 2023 results on May 8. It has an Earnings ESP of +11.12% and currently carries a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter has moved 52.4% south in the past 60 days.
The consensus mark for revenues in the to-be-reported quarter is pegged at $81.9 million, indicating year-over-year growth of 15.4%. The consensus mark for the bottom line is pegged at 10 cents, indicating a decrease of 84.6% on an year-over-year basis.
PagSeguro Digital Ltd.: The company is a provider of financial technology solutions and services.
PagSeguro is expected to report its first-quarter 2023 results soon. It has an Earnings ESP of +3.70% and a Zacks Rank #3. The Zacks Consensus Estimate for the to-be-reported quarter has remained unchanged in the past 60 days.
The consensus mark for revenues in the to-be-reported quarter is pegged at $697.5 million, indicating year-over-year growth of 6.4%. The consensus mark for the bottom line is pegged at 20 cents, indicating a decrease of 4.8% on a year-over-year basis.
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 >>
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/performance for information about the performance numbers displayed in this press release.