For Immediate Release
Chicago, IL – October 17, 2016 – 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 Asure Software Inc. (NASDAQ:(ASUR - Free Report) –Free Report),SITO Mobile Ltd. (NASDAQ:(SITO - Free Report) –Free Report),Vocera Communications Inc. (NYSE:(VCRA - Free Report) –Free Report),Veeco Instruments Inc. (NASDAQ:(VECO - Free Report) –Free Report) and Windstream Holdings Inc. (NASDAQ:(WIN - Free Report) – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Technology Stocks to Scoop Up on Upbeat Q3 Earnings
As per the Zacks Trend report, overall third-quarter earnings for S&P 500 companies are expected to be down 2.9% while revenues are likely to increase a modest 1.2%. Notably, earnings growth is expected to be negative for half of the 16 Zacks sectors, including Technology and Finance, the largest in the index.
Apple to Hit Technology Earnings
Earnings for the Technology sector are expected to be down 1.8% based on 1.1% lower revenues. Apple’s guidance, which projects earnings decline of 20.7% on 9.6% lower revenues, will deal a major blow to earnings. Excluding the sector, earnings are anticipated to grow 3% on 0.5% higher revenues.
Although Apple’s guidance is a dampener for the sector, we believe growing adoption of cloud computing and artificial intelligence (AI) technology, self-driving cars, personal assistants and Internet of Things (IoT) present significant opportunity for investors.
Per IDC, IT spending on cloud infrastructure -- servers, enterprise storage, and Ethernet switches for the enterprise private cloud and co-location services -- will increase 15.5% in 2016 to $37.1 billion. The growth rate is particularly noticeable when compared to spending on traditional IT, which is expected to decline 4.4% in 2016.
How to Make the Right Pick?
With the existence of a number of industry players, finding the right stocks that have the potential to beat earnings could pose to be a daunting task. Our proprietary methodology, however, makes it fairly simple for you. You could narrow down the list of choices by looking at stocks that have the combination of a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP.
Earnings ESP is our proprietary methodology for determining stocks that have the best chance to surprise with their next earnings announcement. It provides 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 a positive earnings surprise is as high as 70%.
Given below are five technology providers that have the right combination of elements to post an earnings beat this quarter:
Asure Software Inc. (NASDAQ:(ASUR - Free Report) – Free Report) – Austin, TX-based Asure Software is a provider of cloud-based software-as-a-service (SaaS) solutions that help manage mobile workforces and global workspaces. The company’s clientele includes the likes of Aetna, Apple, Pfizer, salesforce.com, among others.
Currently, Asure flaunts a Zacks Rank #1 and has an earnings ESP of +14.29%. The company is expected to report third-quarter 2016 results on Nov 21. You can see the complete list of today’s Zacks #1 Rank stocks here.
SITO Mobile Ltd. (NASDAQ:(SITO - Free Report) – Free Report) – NJ-based SITO Mobile provides wireless application development, publishing and distribution. It offers mobile location-based advertising and mobile messaging platforms that enable brands, agencies, and retailers to transform digital marketing by delivering targeted mobile advertising campaigns based on geo-location, in-store traffic, and customer response.
SITO Mobile posted an average earnings surprise of 5.36% over the last four quarters. The stock holds a Zacks Rank #1 with an earnings ESP of +100%. The company is expected to announce its third-quarter 2016 financial numbers onNov 22.
Vocera Communications Inc. (NYSE:(VCRA - Free Report) – Free Report) – Headquartered in San Jose, CA, Vocera provides mobile communication solutions focused on addressing critical communication challenges facing hospitals. The company posted an average positive earnings surprise of 28.14% over the last four quarters.
Vocera currently sports a Zacks Rank #1 and has an earnings ESP of +10%. The company is scheduled to report third-quarter 2016 results on Oct 27.
Veeco Instruments Inc. (NASDAQ:(VECO - Free Report) – Free Report) - Headquartered in Plainview, NY, Veeco designs, manufactures, markets and services a broad line of precision beam etching and surface measurement systems used in microelectronic products. The stock recorded an average positive earnings surprise of 22.08% over the last four quarters.
Veeco currently sports a Zacks Rank #1 and has an earnings ESP of +17.86%. The company is set to report third-quarter 2016 results on Nov 1.
Windstream Holdings Inc. (NASDAQ:(WIN - Free Report) – Free Report) - Headquartered in Little Rock, AR, Windstream, together with its subsidiaries, provides local and long distance phone service and high-speed Internet to residential and business customers across 48 states. The stock recorded an average positive earnings surprise of 138% over the trailing four quarters.
Windstream currently sports a Zacks Rank #1 and has an earnings ESP of +2.56%. The company is expected to report third-quarter 2016 results on Nov 3.
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Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
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