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Looking at the earnings calendar we see a surprising number of important tech earnings coming today after the close. Let’s take a look at each of them and see if it might be worth the gamble to hold these stocks into the print.
Ambarella
Ambarella (NASDAQ: AMBA– Free Report) is slated to report $0.44, down from $0.54 which was reported in the year ago quarter. Revenue is expected to be $70.8M, which would be an increase from the $65.1M reported one year ago and up even more from the $64.1M reported last quarter.
The last three reports all came with revenue guidance that was below the Wall Street Consensus, and being a growth name, investors didn’t like that. In each of the last four reports, AMBA has seen its stock drop. That sort of record isn’t inspiring and right now the options market is calling for a 7% move in either direction.
AMBA is a Zacks Rank #3 (Hold) with a negative earnings ESP.
My Take: I know the Facebook camera idea is out there and not too long ago AMBA was rumored to be approached on the M&A front. I would avoid this stock, but at the same time I wouldn’t short it.
Nutanix
Nutanix (NASDAQ: NTNX– Free Report) is a Zacks Rank #3 but it does have a +2% earnings ESP. NTNX is expected to show a loss of $0.38 on $218M of revenues. The company has only reported 3 times in the past but has beat on top and on bottom in each of the reports. The thing that I like to see is increased guidance and the last quarter saw just that.
Jefferies just came out with a buy rating on the stock on August 17 and put a $30 price target as well. Back in May, Goldman Sachs upgraded the stock to buy from neutral.
My Take: this one could be big, with the options market calling for a 15% move in either direction. Last quarter the company posted some solid numbers and the stock moved higher by 11% when the options market was calling for an 18% move. I like this stock.
Palo Alto Networks
Palo Alto Networks (NYSE: PANW– Free Report) is a Zacks Rank #3 (Hold) and has a slightly negative earnings ESP. Analysts are expecting $0.79 in EPS and $487M in revenue. Over the last four reports, PANW has beat on the bottom line, but sales expectations were higher than reported in two of the reports.
The company’s third fiscal quarter which was reported at the end of February came with downside guidance and that sent the stock down 24% in the session following the release. Things got better in May when a healthy bottom line beat and guidance ahead of the consensus estimate sent the stock up by more than 17%.
My Take: The options market is looking for a 9% move, but this could move a lot more than that. The security software space heating up with Citi recently upgrading the stock with a $160 target. Northland is the bull here, with an outperform and $175 target. I like it to beat and move higher.
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But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
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Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
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.
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.
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Zacks Investment Ideas feature highlights: Ambarella, Nutanix and Palo Alto Networks
For Immediate Release
Chicago, IL – August 31, 2017 – Today, Zacks Investment Ideas feature highlights Features: Ambarella (NASDAQ: (AMBA - Free Report) – Free Report), Nutanix (NASDAQ: (NTNX - Free Report) – Free Report) and Palo Alto Networks (NYSE: (PANW - Free Report) – Free Report).
Tech Earnings for August 31
Looking at the earnings calendar we see a surprising number of important tech earnings coming today after the close. Let’s take a look at each of them and see if it might be worth the gamble to hold these stocks into the print.
Ambarella
Ambarella (NASDAQ: AMBA – Free Report) is slated to report $0.44, down from $0.54 which was reported in the year ago quarter. Revenue is expected to be $70.8M, which would be an increase from the $65.1M reported one year ago and up even more from the $64.1M reported last quarter.
The last three reports all came with revenue guidance that was below the Wall Street Consensus, and being a growth name, investors didn’t like that. In each of the last four reports, AMBA has seen its stock drop. That sort of record isn’t inspiring and right now the options market is calling for a 7% move in either direction.
AMBA is a Zacks Rank #3 (Hold) with a negative earnings ESP.
My Take: I know the Facebook camera idea is out there and not too long ago AMBA was rumored to be approached on the M&A front. I would avoid this stock, but at the same time I wouldn’t short it.
Nutanix
Nutanix (NASDAQ: NTNX – Free Report) is a Zacks Rank #3 but it does have a +2% earnings ESP. NTNX is expected to show a loss of $0.38 on $218M of revenues. The company has only reported 3 times in the past but has beat on top and on bottom in each of the reports. The thing that I like to see is increased guidance and the last quarter saw just that.
Jefferies just came out with a buy rating on the stock on August 17 and put a $30 price target as well. Back in May, Goldman Sachs upgraded the stock to buy from neutral.
My Take: this one could be big, with the options market calling for a 15% move in either direction. Last quarter the company posted some solid numbers and the stock moved higher by 11% when the options market was calling for an 18% move. I like this stock.
Palo Alto Networks
Palo Alto Networks (NYSE: PANW – Free Report) is a Zacks Rank #3 (Hold) and has a slightly negative earnings ESP. Analysts are expecting $0.79 in EPS and $487M in revenue. Over the last four reports, PANW has beat on the bottom line, but sales expectations were higher than reported in two of the reports.
The company’s third fiscal quarter which was reported at the end of February came with downside guidance and that sent the stock down 24% in the session following the release. Things got better in May when a healthy bottom line beat and guidance ahead of the consensus estimate sent the stock up by more than 17%.
My Take: The options market is looking for a 9% move, but this could move a lot more than that. The security software space heating up with Citi recently upgrading the stock with a $160 target. Northland is the bull here, with an outperform and $175 target. I like it to beat and move higher.
Zacks' 10-Minute Stock-Picking Secret
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.
Learn the secret >>
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information>>
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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.