Author

Zacks Equity Research

Browsing

Oracle (ORCL – Free Report) came out with quarterly earnings of $0.93 per share, beating the Zacks Consensus Estimate of $0.86 per share. This compares to earnings of $0.81 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 8.14%. A quarter ago, it was expected that this software maker would post earnings of $1.14 per share when it actually produced earnings of $1.20, delivering a surprise of 5.26%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Oracle, which belongs to the Zacks Computer – Software industry, posted revenues of $9.37 billion for the quarter ended August 2020, surpassing the Zacks Consensus Estimate by 2.39%. This compares to year-ago revenues of $9.22 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Oracle shares have added about 7.5% since the beginning of the year versus the S&P 500’s gain of 5.2%.

What’s Next for Oracle?

While Oracle has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Oracle was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.94 on $9.56 billion in revenues for the coming quarter and $4.03 on $39.14 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer – Software is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Author: Zacks Equity Research

Source: Zacks: Oracle (ORCL) Q1 Earnings and Revenues Surpass Estimates

The Zacks Medical-Biomedical and Genetics industry consists of several large as well as small pharma companies. The larger companies, which hold the majority of the industry’s market capitalization, have a strong portfolio of commercial drugs and pipeline candidates. These companies also boast a strong balance sheet and a steady stream of revenues. However, the majority of the companies in the sector are small with a few to no marketed drugs. Most of these companies are in development-stage especially with focus on diseases, which are rare to treat or have significant unmet need like fatty liver, uncommon cancer indications and others.

Some of these clinical stage biotech companies are dependent on just one pipeline candidate. Consequently, the success or failure of their key pipeline candidates in clinical studies affects a stock’s price. These stocks are also affected by a partnership deal or the loss of one with a big pharma company as the latter provides significant funding for research.

The Zacks Medical-Biomedical and Genetics industry has risen 1.4% so far this year, outperforming the broader Medical market’s increase of 0.5%. Moreover, the Medical-Biomedical and Genetics industry has risen 26.5% since mid-March amid the coronavirus crisis.

The upside in biotech sector has been led by the small companies, primarily the ones developing a vaccine for coronavirus. Shares of some companies developing coronavirus vaccine candidates have witnessed sizable gains on hopes that a successful development will likely lead to significant amount of revenues amid the pandemic. Some among them are solely focused on developing the vaccine with no other pipeline candidates. Moreover, biotechs developing a vaccine against COVID-19 are also attracting significant amount of funding from governments across the world and other public as well as private organizations to support development. Meanwhile, a few large-cap companies like Pfizer, Sanofi and Glaxo have also collaborated with small biotechs in search of a vaccine, which boosted their stock prices.

Please note that Moderna, Pfizer and, AstraZeneca are leading names involved in developing a vaccine. Emergent Biosolutions is one of the companies leading the race of companies providing manufacturing services to vaccine makers.

Apart from coronavirus-related developments, a few companies have surged on the back of encouraging progress with their pipeline candidates, especially for oncology indications.

Stocks That Outperformed

Here we have zeroed in on five biotech companies, which have risen more than 100% so far this year and witnessed positive earnings estimate revisions. These stocks either sport a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Emergent Biosolutions Inc. (EBS – Free Report)

Emergent Biosolutions sports a Zacks Rank #1. The company surpassed earnings estimates in three of the last four reported quarters and missed the same once with the average beat being 127.41%. The Zacks Consensus Estimate for earnings has moved up 56.4% for 2020 in the past 30 days. Shares of the company have rallied 137.3% so far in 2020.

Horizon Therapeutics (HZNP – Free Report)

Another Zacks Rank #1 company, Horizon Therapeutics surpassed earnings estimates in all the last four reported quarters with the average beat being 38.63%. The Zacks Consensus Estimate for earnings has moved north by 51.3% for 2020 in the past 30 days. Shares of the company have rallied 108.1% year to date.

Novavax, Inc. (NVAX – Free Report)

Novavax is a Zacks Rank #2 company. The four-quarter average earnings beat is 13.8%. The Zacks Consensus Estimate for earnings has increased 34% for 2020 in the past 30 days. Shares of the company have rallied 3357.8% so far this year.

Celldex Therapeutics, Inc. (CLDX – Free Report)

Celldex surpassed earnings estimates in two of the past four quarters with the average beat being 10.8%. The Zacks Consensus Estimate for loss has narrowed 42.7% for 2020 in the past 30 days. Shares of the company have rallied 392.8% year to date. The company carries a Zacks Rank #2.

Aileron Therapeutics, Inc. (ALRN – Free Report)

Aileron carries a Zacks Rank #2. The Zacks Consensus Estimate for loss has narrowed 4.5% for 2020 in the past 30 days. Shares of the company have rallied 114.7% so far in 2020.

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.

These 7 were selected because of their superior potential for immediate breakout.

Author: Zacks Equity Research

Source: Zacks: 5 Biotech Stocks Up More Than 100% This Year So Far

The coronavirus pandemic is wrecking havoc for months now. With businesses closed across the globe, the magnitude of the damage is unprecedented. Moreover, there has been a massive impact on the supply chain across the globe.

The pandemic-led lockdowns have forced people to stay and work from home. This in turn has given rise to new trends like remote working, accelerating technological development. In fact, businesses now need to relook at staff compensation, with majority offering productivity from home. In several countries, governments are also making changes in policies to help both employees and employers to get through such trying times.

The ‘new normal’ has altered several businesses, and here are a few emerging trends we would like to discuss–

Dine-at-Home is the New Dine-Out

With coronavirus being highly communicable, social-distancing guidelines have been introduced, leading to closure of restaurants and dine-out facilities.

Many restaurants have not been generating any revenue for months now and have been exploring alternate option sowing to slim chances of the virus dissipating anytime soon. Several chef-driven, fine dining restaurants, which earlier solely focused on providing customers a dining-in experience, are now planning to offer take-away and delivery services.

Similarly, many companies that provide ready-to-cook meals are now collaborating with renowned chefs and restaurants to deliver recipes and ingredients to customers’ doorstep. All in all, food delivery enterprises seem to be in a better position as dinning-in is the only option now. Here are two stocks that can make the most of this new normal –

Blue Apron Holdings, Inc. (APRN – Free Report) operates a direct-to-consumer platform that delivers original recipes, and fresh and seasonal ingredients. The company’s expected earnings growth rate for the current quarter is 23.7% against the Zacks Food – Miscellaneous industry’s projected earnings decline of 1.7%.

The Zacks Consensus Estimate for its current-year earnings has moved up9.7% over the past 60 days.Blue Apron carries a Zacks Rank #2 (Buy).

Domino’s Pizza, Inc. (DPZ – Free Report) operates as a pizza delivery company. The company’s expected earnings growth rate for the current year is 14.2% against the Zacks Retail – Restaurants industry’s projected earnings decline of 28.1%. The Zacks Consensus Estimate for its current-year earnings has climbed1.9% over the past 60 days.Domino’s Pizza carries a Zacks Rank #2.

Physical to Digital Transition

The COVID-19 crisis has resulted in the extensive use of robots and AI. From delivery, healthcare to surveillance, robots and AI are now replacing people at warehouses, factories, stores and even for police patrol.

In fact, since the outbreak, there has been a significant rise in online grocery orders, for both convenience and safety. Even for businesses, all processes, starting from order processing to internal communication, and from supply chain management to client service, have being digitized.

The crisis has led to rapid acceleration in development of technologies in various spheres of businesses. In fact, some changes that would have taken several years in a normal scenario, have been implemented in just months. Here are two robotics companies that will enjoy a boom –

Accuray Incorporated (ARAY – Free Report) designs, develops and sells radiosurgery and radiation therapy systems. The company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Medical – Instruments industry’s projected earnings decline of 21.6%. The Zacks Consensus Estimate for its current-year earnings has moved100% up over the past 90 days. Accuray carries a Zacks Rank #2.

AeroVironment, Inc. (AVAV – Free Report) offers unmanned aircraft systems. This Zacks Rank #3 (Hold) company’s expected earnings growth rate for the current year is 1.7% against the Zacks Aerospace – Defense Equipment industry’s projected earnings decline of 12%. The Zacks Consensus Estimate for its current-year earnings has advanced8.6% over the past 90 days.

Cloud Computing Powering Remote Working

With millions under lockdown, cloud computing and storage seem to be part of every person’s life. From video conferencing, gaming, shopping, remote project collaboration to online classes, everything is online these days.

Along with connecting employees who are working remotely, cloud computing offers storage, data backup, disaster recovery and archiving facilities. In fact, the cloud computing boom has pushed companies like Microsoft Corporation (MSFT – Free Report) to venture into different regions across the world, building its first datacenters in Italy, Poland and New Zealand.

Meanwhile, Tencent and Alibaba are offering a vast array of cloud computing services for free to researchers and scientists, designed to support research that includes diagnosis, testing and genome sequencing of COVID-19. These cloud computing tools are also designed to help businesses, medical institutions and governments fight the pandemic. Here are two cloud-computing stocks that are poised to grow with the new trend –

CrowdStrike Holdings, Inc.’s (CRWD – Free Report) Falcon is a cloud-native endpoint security platform that protects customers against all cyber-threats with the power of big data and AI. The company’s expected earnings growth rate for the current quarter is 87.2% against the Zacks Internet – Software industry’s projected earnings decline of more than 100%. The Zacks Consensus Estimate for its current-year earnings has moved36.8% north over the past 60 days. CrowdStrike carries a Zacks Rank #2.

Microsoft’s Azure offers cloud computing services for building, testing, deploying, and managing applications and services through data centers. Azure sales grew 59% in third-quarter fiscal 2020, while sales of Office 365 Commercial and Dynamic 365 climbed 25% and 47%, respectively. The company’s expected earnings growth rate for the current year is 19.7% against the Zacks Computer – Software industry’s projected earnings decline of 9%. The Zacks Consensus Estimate for its current-year earnings has climbed1.3% over the past 60 days. Microsoft carries a Zacks Rank #3.

Today’s Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

Author: Zacks Equity Research

Source: Zacks: 6 Stocks to Benefit From the ‘New Normal’

The coronavirus pandemic is wrecking havoc for months now. With businesses closed across the globe, the magnitude of the damage is unprecedented. Moreover, there has been a massive impact on the supply chain across the globe.

The pandemic-led lockdowns have forced people to stay and work from home. This in turn has given rise to new trends like remote working, accelerating technological development. In fact, businesses now need to relook at staff compensation, with majority offering productivity from home. In several countries, governments are also making changes in policies to help both employees and employers to get through such trying times.

The ‘new normal’ has altered several businesses, and here are a few emerging trends we would like to discuss–

Dine-at-Home is the New Dine-Out

With coronavirus being highly communicable, social-distancing guidelines have been introduced, leading to closure of restaurants and dine-out facilities.

Many restaurants have not been generating any revenue for months now and have been exploring alternate option sowing to slim chances of the virus dissipating anytime soon. Several chef-driven, fine dining restaurants, which earlier solely focused on providing customers a dining-in experience, are now planning to offer take-away and delivery services.

Similarly, many companies that provide ready-to-cook meals are now collaborating with renowned chefs and restaurants to deliver recipes and ingredients to customers’ doorstep. All in all, food delivery enterprises seem to be in a better position as dinning-in is the only option now. Here are two stocks that can make the most of this new normal –

Blue Apron Holdings, Inc. (APRN – Free Report) operates a direct-to-consumer platform that delivers original recipes, and fresh and seasonal ingredients. The company’s expected earnings growth rate for the current quarter is 23.7% against the Zacks Food – Miscellaneous industry’s projected earnings decline of 1.7%.

The Zacks Consensus Estimate for its current-year earnings has moved up9.7% over the past 60 days.Blue Apron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Domino’s Pizza, Inc. (DPZ – Free Report) operates as a pizza delivery company. The company’s expected earnings growth rate for the current year is 14.2% against the Zacks Retail – Restaurants industry’s projected earnings decline of 28.1%. The Zacks Consensus Estimate for its current-year earnings has climbed1.9% over the past 60 days.Domino’s Pizza carries a Zacks Rank #2.

Physical to Digital Transition

The COVID-19 crisis has resulted in the extensive use of robots and AI. From delivery, healthcare to surveillance, robots and AI are now replacing people at warehouses, factories, stores and even for police patrol.

In fact, since the outbreak, there has been a significant rise in online grocery orders, for both convenience and safety. Even for businesses, all processes, starting from order processing to internal communication, and from supply chain management to client service, have being digitized.

The crisis has led to rapid acceleration in development of technologies in various spheres of businesses. In fact, some changes that would have taken several years in a normal scenario, have been implemented in just months. Here are two robotics companies that will enjoy a boom –

Accuray Incorporated (ARAY – Free Report) designs, develops and sells radiosurgery and radiation therapy systems. The company’s expected earnings growth rate for the current quarter is more than 100% against the Zacks Medical – Instruments industry’s projected earnings decline of 21.6%. The Zacks Consensus Estimate for its current-year earnings has moved100% up over the past 90 days. Accuray carries a Zacks Rank #2.

AeroVironment, Inc. (AVAV – Free Report) offers unmanned aircraft systems. This Zacks Rank #3 (Hold) company’s expected earnings growth rate for the current year is 1.7% against the Zacks Aerospace – Defense Equipment industry’s projected earnings decline of 12%. The Zacks Consensus Estimate for its current-year earnings has advanced8.6% over the past 90 days.

Cloud Computing Powering Remote Working

With millions under lockdown, cloud computing and storage seem to be part of every person’s life. From video conferencing, gaming, shopping, remote project collaboration to online classes, everything is online these days.

Along with connecting employees who are working remotely, cloud computing offers storage, data backup, disaster recovery and archiving facilities. In fact, the cloud computing boom has pushed companies like Microsoft Corporation (MSFT – Free Report) to venture into different regions across the world, building its first datacenters in Italy, Poland and New Zealand.

Meanwhile, Tencent and Alibaba are offering a vast array of cloud computing services for free to researchers and scientists, designed to support research that includes diagnosis, testing and genome sequencing of COVID-19. These cloud computing tools are also designed to help businesses, medical institutions and governments fight the pandemic. Here are two cloud-computing stocks that are poised to grow with the new trend –

CrowdStrike Holdings, Inc.’s (CRWD – Free Report) Falcon is a cloud-native endpoint security platform that protects customers against all cyber-threats with the power of big data and AI. The company’s expected earnings growth rate for the current quarter is 87.2% against the Zacks Internet – Software industry’s projected earnings decline of more than 100%. The Zacks Consensus Estimate for its current-year earnings has moved36.8% north over the past 60 days. CrowdStrike carries a Zacks Rank #2.

Microsoft’s Azure offers cloud computing services for building, testing, deploying, and managing applications and services through data centers. Azure sales grew 59% in third-quarter fiscal 2020, while sales of Office 365 Commercial and Dynamic 365 climbed 25% and 47%, respectively. The company’s expected earnings growth rate for the current year is 19.7% against the Zacks – Computer Software industry’s projected earnings decline of 9%. The Zacks Consensus Estimate for its current-year earnings has climbed1.3% over the past 60 days. Microsoft carries a Zacks Rank #3.

Today’s Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.

This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.

Author: Zacks Equity Research

Source: Zacks: 6 Stocks to Benefit From the ‘New Normal’

The novel coronavirus is highly contagious, and frontliners like healthcare officials and police face immense threat of getting infected. This has led scientists across the world look for solutions in technology, especially, artificial intelligence (AI), machine learning and robots.

Artificial intelligence has been playing a significant role in analyzing the DNA composition of the novel coronavirus and is helping scientists speed up the vaccine discovery process. In fact, due to the wide scope of deep learning system, AI can now help in maintaining law and order and stop the spread of misinformation that can induce fear among people during the pandemic.

AI in Healthcare

Artificial intelligence is being used to early screen COVID-19 patients from their computed tomography (CT) images and is quite a promising supplementary diagnostic method for frontline clinical doctors. So far, the overall accuracy of the deep learning models is 86.7%. This is especially for three groups: COVID-19, Influenza-A viral pneumonia and healthy cases.

Additionally, scientists globally are using AI to identify underlying genomic signatures for 29 different DNA sequences of COVID-19. This acts as an important tool for vaccine and drug developers. In fact, deep learning has helped scientists achieve accurate classification of the novel coronavirus genomic structure and helped them discover the most-relevant relationship in a very short time.

As the novel coronavirus tends to mutate and has been seen in more than 29 different genomic sequences, the usage of deep learning will only help in rapid analysis. In fact, it was AI that rang the first international alarm about the COVID-19 pandemic. On Dec 30, 2019, the data-mining program, HealthMap, which uses AI to scan social media, news reports and other information streams for signs of disease outbreaks, spotted a news report of a new type of pneumonia in Wuhan.

AI to Fight Misinformation Spread

In recent years, AI has been advancing at a steady pace, and now even replaces school tutors, fitness trainers and financial advisers, in certain scenarios. Even with remote working facilities available, not all work can be done from home. Here AI has found a window to take over work done by human.

Big technology firms are now expanding the use of artificial intelligence and deep learning. AI helps to remove inappropriate posts since the companies’ human content moderators can’t review certain things working remotely.

In April, Facebook disseminated around 50 million posts spreading false news about the coronavirus. Additionally the company removed 2.5 million ads for face masks, Covid-19 test kits and other coronavirus-related products, in an attempt to prevent scammers trying to profit from people’s fears about the pandemic. In this process the company relies on AI to supplement the scrutiny done by human eyes. The company also uses its existing multimodal content analysis tools that checks both text and images together to interpret a post.

3 Stocks to Watch

Given the wide application and usage of AI in times when the deadly disease has put economies to halt, it appears that investing in such companies can return well. What’s more? Earlier in 2017, a report by global consultants McKinsey predicted that a third of workers in the United States could be replaced by automation and robots by 2030, where AI plays a major role.

And an event like a pandemic not only gives such an advancement a boost but also has the potential to change timeline.

NVIDIA Corporation (NVDA – Free Report) is a visual computing company. The company’s expected earnings growth rate for the current year is 28.7% against the Zacks Semiconductor – General industry’s projected earnings decline of 21%.

The Zacks Consensus Estimate for its current-year earnings increased 0.4% over the past 30 days. Nvidia carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Microsoft Corporation (MSFT – Free Report) develops, licenses and supports software, services, devices and solutions. The company’s expected earnings growth rate for the current year is 19.8% against the Zacks Computer – Software industry’s projected earnings decline of 6.2%. The Zacks Consensus Estimate for its current-year earnings increased 1.3% over the past 30 days. Microsoft carries a Zacks Rank #2.

Veritone, Inc. (VERI – Free Report) provides artificial intelligence and computing solutions. The company’s expected earnings growth rate for the current quarter is 65% against the Zacks Technology Services industry’s projected earnings decline of 8.4%. The Zacks Consensus Estimate for its current-year earnings increased 7.1% over the past 90 days. Veritone carries a Zacks Rank #3 (Hold).

Zacks’ Single Best Pick to Double

From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.

This young company’s gigantic growth was hidden by low-volume trading, then cut short by the coronavirus. But its digital products stand out in a region where the internet economy has tripled since 2015 and looks to triple again by 2025.

Its stock price is already starting to resume its upward arc. The sky’s the limit! And the earlier you get in, the greater your potential gain.

Author: Zacks Equity Research

Source: Zacks: 3 Stocks to Gain as Deep Learning Aids in Coronavirus Response

Ad Blocker Detected!

Advertisements fund this website. Please disable your adblocking software or whitelist our website.
Thank You!