For Immediate Release
Chicago, IL – December 31, 2018 – Zacks Equity Research Big Lots, Inc. (BIG - Free Report) as the Bull of the Day, Insperity, Inc. (NSP - Free Report) asthe Bear of the Day. In addition, Zacks Equity Research provides analysis on Garmin Ltd. (GRMN - Free Report) , Qualcomm Inc. (QCOM - Free Report) and TiVo Corp. .
Here is a synopsis of all five stocks:
Bull of the Day:
Big Lots, Inc. is one of the country’s biggest closeout retailers, selling food, home furnishings, furniture and other household items and merchandise. The company also operates Big Lots Foundation, a charitable organization focused on four areas of need: hunger, housing, healthcare and education.
Shares of Big Lots have slumped about 50% since January, and lower-than-expected results in its third-quarter earnings report didn’t much help the stock.
The company reported a loss per share of 16 cents, missing the Zacks Consensus Estimate of a loss of a penny per share. Net loss came to $6.6 million.
Net sales hit $1.149 billion, which did beat our consensus estimate and increased 3.6% year-over-year. Additionally, comparable store sales jumped 3.4%.
Gross margin contracted 10 basis points to 39.9% due to a higher seasonal markdown rate and tariff-related costs.
Big Lots did see an increase in inventory, and ended Q3 at $1.074 billion compared to $1.038 billion for the third quarter of fiscal 2017. This increase was primarily driven by the “shift and timing of [its] retail calendar year compared to last year.”
In the company’s press release, President and CEO Bruce Thorn said, “While we expect near-term results to be challenging this holiday season, we have a strong brand, great people, and we are working swiftly to enhance our current strategy, identify new growth opportunities, and position our business for profitable expansion well into the future."
Bear of the Day:
Headquartered in Houston, TX, Insperity, Inc. is a company that provides an array of human resources and business solutions services. These include: Workforce Optimization in the marketplace, MidMarket Solutions, Performance Management, Expense Management, Time and Attendance, Organizational Planning, Employment Screening, Recruiting Services, Retirement Services, Business Insurance and Technology Services.
Record Third Quarter Results
Last month, Insperity posted impressive Q3 results.
Adjusted earnings of 96 cents beat the Zacks Consensus Estimate of 82 cents and jumped 68% year-over-year; adjusted EBITDA increased 43% to $61.6 million.
Revenues grew 16% to $925 million thanks to a 15% increase in the average number of worksite employees (WSEEs) paid per month.
Gross profit increased 19%, driven by the WSEE growth as well as effective pricing and management of Insperity’s direct cost programs.
Insperity did raise its guidance for 2018, and projects adjusted earnings between $3.69 per share and $3.73 per share, which would represent growth between 51-52%. Adjusted EBITDA is projected to grow 33-34% to a range of $236-$238 million. The prior guided range was $225 million to $229 million.
In the company’s earnings release, Paul J. Sarvadi, chairman and CEO, said, “Our refined business model is continuing to generate outstanding growth and profitability as demonstrated by the recent quarter and year-to-date results. We are in an excellent position to continue double-digit growth and profitability as we look forward to 2019.”
3 Tech Stocks for Dividend Investors to Buy Now
Tech stocks have been battered times recently, and though the sector has proven it can rebound from volatility strongly, it is likely that tech-minded investors are joining the fear-averse masses and searching for stability in their picks.
This means now might be the time for techies to take a page out of the income investing book, which would tell us to focus on companies with solid dividends.
Finding a strong dividend-yielding tech stock might feel like searching for a golden goose, but investors should not feel too intimidated. In fact, dividend-focused investors can search for the best tech stocks by using the Zacks Stock Screener, the perfect one-stop screening tool for investors of all kinds.
By limiting our search to companies in our “Computer and Technology” sector with Zacks Rank #2 (Buy) or better rankings, we can ensure that we are finding the highest quality stocks to buy right now. Throw in your preferred dividend yield and voila—the best tech stocks for dividend investors to target!
Check out these three stocks to buy now:
1. Garmin Ltd.
Garmin is a designer of GPS navigation and wearable technology equipment. The stock is holding a Zacks Rank #2 (Buy) and presents a dividend yield of about 3.4%. Investors have to pay a slight premium for GRMN right now, but a valuation of 18x earnings and a PEG ratio of 2.4 are actually quite attractive compared to recent trends.
Meanwhile, Garmin generates $3.42 in cash per share and sticks out from the rest of the technology group with its net margin of 19.5%, which dramatically outpaces its industry’s average. Garmin is also an efficient company, evidenced by its RoE of 17%.
2. Qualcomm Inc.
Qualcomm is one of the world’s largest telecommunications equipment and semiconductor manufacturing companies in the world. QCOM currently sports a Zacks Rank #1 (Strong Buy) and has a dividend yield of 4.4%. Management has a great track record of adding to the payout and has hiked the dividend annually since 2009.
Chip stocks have been volatile, but Qualcomm offers exposure to different businesses, including large swaths of untapped growth in 5G. This is part of why the company is expected to improve earnings by 5.4% this fiscal year and see a long-term annualized EPS growth rate of 10.9%. This should further improve its financial position and allow it to reward shareholders even more.
3. TiVo Corp.
TiVo Corporation is a tech company focused on licensing its intellectual property within the consumer electronics industry. It is best known for the TiVo brand of digital video recorders, which revolutionized the TV business. The corporation as it is shaped today was formed by the merger of Rovi and TiVo in 2016.
TIVO has a Zacks Rank #2 (Buy) and a dividend yield of 7.6%. The company’s growth outlook is rocky, but the stock looks to have found a bottom just below $9 per share, and that gives investors plenty of upside considering the dividend and valuation. On top of the strong payout, TIVO is trading at just 8.7x earnings and has a P/S ratio of 1.6.
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