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GoDaddy (GDDY) Likely to Deliver a Surprise in Q1 Earnings
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GoDaddy Inc. (GDDY - Free Report) is expected to beat expectations when it reports first-quarter 2017 results on May 2. It will be interesting to watch if a likely beat drives the company’s share price.
In the last one year, shares of GoDaddy outperformed the Zacks categorized Internet Services Delivery industry. While the industry gained 23.9%, the stock returned 24.3%.
Why a Likely Positive Surprise?
Our proven model shows that GoDaddy is likely to beat on earnings because it has the right combination of the two key ingredients.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +125%. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: GoDaddyhas a Zacks Rank #3 (Hold).
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
The combination of GoDaddy’s Zacks Rank #3 and +125% ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-Than-Expected Earnings?
GoDaddy is engaged in the designing and development of cloud-based technology products for small businesses, Web design professionals and individuals. GoDaddy’s strong market position, increasing investments in products, technology platform and customer care should boost first-quarter results. We also expect its focus on delivering innovative and increasingly personalized products and services globally to bear fruit.
Also, the company is striving to expand internationally by investing in technology, marketing programs and customer-care teams. Growing international presence and a shift toward dynamic online presence for small business is likely to play an important role going forward. Moreover, with product development and more effective ads, the company is trying to establish itself as a serious player.
However, significant competition, heavy debt burden and controversies surrounding the company could pose challenges.
Terex Corporation (TEX - Free Report) , with an Earnings ESP of +66.67% and a Zacks Rank #2.
First Solar, Inc. (FSLR - Free Report) , with an Earnings ESP of +69.23% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
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GoDaddy (GDDY) Likely to Deliver a Surprise in Q1 Earnings
GoDaddy Inc. (GDDY - Free Report) is expected to beat expectations when it reports first-quarter 2017 results on May 2. It will be interesting to watch if a likely beat drives the company’s share price.
In the last one year, shares of GoDaddy outperformed the Zacks categorized Internet Services Delivery industry. While the industry gained 23.9%, the stock returned 24.3%.
Why a Likely Positive Surprise?
Our proven model shows that GoDaddy is likely to beat on earnings because it has the right combination of the two key ingredients.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +125%. This is a meaningful indicator of a likely positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: GoDaddyhas a Zacks Rank #3 (Hold).
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 have a significantly higher chance of beating earnings estimates. We caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
The combination of GoDaddy’s Zacks Rank #3 and +125% ESP makes us reasonably confident of an earnings beat.
What is Driving the Better-Than-Expected Earnings?
GoDaddy is engaged in the designing and development of cloud-based technology products for small businesses, Web design professionals and individuals. GoDaddy’s strong market position, increasing investments in products, technology platform and customer care should boost first-quarter results. We also expect its focus on delivering innovative and increasingly personalized products and services globally to bear fruit.
Also, the company is striving to expand internationally by investing in technology, marketing programs and customer-care teams. Growing international presence and a shift toward dynamic online presence for small business is likely to play an important role going forward. Moreover, with product development and more effective ads, the company is trying to establish itself as a serious player.
However, significant competition, heavy debt burden and controversies surrounding the company could pose challenges.
GoDaddy Inc. Price and EPS Surprise
GoDaddy Inc. Price and EPS Surprise | GoDaddy Inc. Quote
Other Stocks to Consider
GoDaddyis not the only firm looking up this earnings season. We also see a likely earnings beat for each of these following companies.
AMETEK, Inc. (AME - Free Report) , with an Earnings ESP of +1.79% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Terex Corporation (TEX - Free Report) , with an Earnings ESP of +66.67% and a Zacks Rank #2.
First Solar, Inc. (FSLR - Free Report) , with an Earnings ESP of +69.23% and a Zacks Rank #3.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500.
See today's Zacks "Strong Sells" absolutely free >>