Back to top

The Zacks Analyst Blog Highlights: Apple, TripAdvisor, Liberty Ventures and Wayfair

Read MoreHide Full Article

For Immediate Release

Chicago, IL – November 08, 2016 – 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 Apple (NASDAQ:(AAPL - Free Report) –Free Report),TripAdvisor Inc. (NASDAQ:(TRIP - Free Report) –Free Report),Liberty Ventures (NASDAQ: –Free Report) and Wayfair Inc. (NYSE:(W - Free Report) – Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Monday’s Analyst Blog:

eCommerce Stock Earnings for November 8: TRIP, LVNTA and More

The bulk of the third-quarter earnings season is behind us, with 423 S&P 500 members, representing 84.6% of the index’s total market capitalization, having already reported their third-quarter results. Earnings recession now seems to have lost ground to positive growth arriving ahead of schedule. The third quarter can be interpreted as an inflection point where the growth trend is finally shifting from the negative territory to the positive territory.

As of Nov 4, the total earnings for these companies are up 3.6% on a year-over-year basis (72.8% of the companies beat EPS estimates) while total revenue is up 2.4% on a year-over-year basis (55.1% of the companies beat top-line estimates).

Notably, after five consecutive quarters of decline, earnings are finally back in the positive territory and the overall picture is that of improvement.

As per our latest Earnings Preview report, overall third-quarter earnings for S&P 500 companies are anticipated to be up 2.4% (compared to an earlier estimate of a rise of 2.1%) from the year-ago quarter on revenues that are estimated to increase 1.4%.

While solid results from the finance sector buoyed the index higher, sluggish growth from the energy, autos, transportation and technology sectors was a drag.

Coming to the technology sector, 73.8% of the index members have reported their quarterly results with total earnings increasing 5% on 2.5% higher revenues. Notably, 82.2% of the companies have surpassed earnings per share estimates, while 75.6% have beaten revenue estimates.

However, technology earnings growth is expected to remain muted due to disappointing results from Apple (NASDAQ:(AAPL - Free Report) – Free Report), which was a big drag this season. Although the iPhone maker beat fourth-quarter 2016 earnings estimates by a penny, its earnings declined 15% on a year-over-year basis on 9.9% decline in revenues.

E-commerce comprises an important component of the technology sector and is anticipated to remain on the earnings growth trajectory in the quarter.

Here we take a look at three e-commerce companies that are set to report earnings on Nov 8:

TripAdvisor Inc. (NASDAQ:(TRIP - Free Report) – Free Report) is unlikely to beat third-quarter 2016 earnings estimates as it has an unfavorable combination of a Zacks Rank #4 (Sell) and anEarnings ESP of +2.38%. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.

This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into an earnings announcement, especially when the company is seeing negative estimate revisions.

TripAdvisor is an online travel research company. It offers reviews and advice on hotels, resorts, flights, vacation rentals, vacation packages, travel guides, and lots more.

During the last quarter, the company acquired Citymaps, a social mapping platform that enables travelers to discover places of interests both locally and worldwide. The app also enables users to share their favorite locations with their friends. We note that this is a very smart move by the company to bolster interest among the tourists to visit new places of interest, which translates to more bookings through the website and hence more revenues for the company.

Additionally, TripAdvisor also revamped its homepage so as to make it more user friendly and convenient for the tourists to plan and book tickets on its website.

These developments are likely to have a positive impact on the company’s upcoming earnings release.

However, macroeconomic uncertainty and competition remain concerns and can adversely affect its earnings in the to-be reported quarter.


We note that TripAdvisor’s results compared unfavorably with the Zacks Consensus Estimate in three out of the last four quarters, resulting in an average negative surprise of 2.62%.

Liberty Ventures (NASDAQ: – Free Report) too is unlikely to beat third-quarter 2016 earnings estimates as it has an unfavorable combination of a Zacks Rank #4 and an Earnings ESP of +211.11%.

Liberty Ventures is primarily focused on business investments. The company owns interests in home shopping television networks and lifestyle and travel services websites.

During the last quarter, the company carried out a management overhaul with an intent to boost growth. Additionally, the company announced quarterly interest payment as well as excess regular cash dividend amount on a certain percentage of senior exchangeable debentures that are due in 2030 and 2043.

While these developments reflect the stable financial position of the company, certain operational and financial risks related to the company’s subsidiaries and business affiliates are a matter of concern ahead of the third-quarter earnings release.


Notably, Liberty Ventures’ results have beaten the Zacks Consensus Estimate in two of the preceding four quarters with an average positive surprise of 373.19%.

Similarly, Wayfair Inc. (NYSE:(W - Free Report) – Free Report) is also unlikely to beat third-quarter 2016 earnings estimates as it has an unfavorable combination of a Zacks Rank #4 and an Earnings ESP of 0.00%.

Wayfair engages in the e-commerce business. It offers bedroom, living room, kitchen and dining, home entertainment, home office, game room and bar, patio, hallway and entryway, and bathroom furniture.

During the last quarter, the company launched Patio Playground, a virtual reality app to enable customers customize their outdoor spaces with décor and furnishings. Additionally, Wayfair owned Joss & Main, a retailer of home décor and furniture, announced its integration with HGTV series Flip or Flop.

While these developments will certainly help the company to popularize its products, growing competition and lack of interest on part of the buyers to shop online for furniture may have some adverse effects on Wayfair’s top line in the to-be reported quarter.

WAYFAIR INC Price and EPS Surprise | WAYFAIR INC Quote

Notably, Wayfair‘s results have beaten the Zacks Consensus Estimate in the preceding four quarters with an average positive surprise of 19.08%.

You can see the complete list of today’s Zacks #1 Rank stocks here .

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

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on AAPL - FREE

Get the full Report on TRIP - FREE

Get the full Report on LVNTA - FREE

Get the full Report on W - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact
Zacks Investment Research

800-767-3771 ext. 9339

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 for information about the performance numbers displayed in this press release.

In-Depth Zacks Research for the Tickers Above

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

Apple Inc. (AAPL) - free report >>

TripAdvisor, Inc. (TRIP) - free report >>

Wayfair Inc. (W) - free report >>

More from Zacks Press Releases

You May Like