For Immediate Release
Chicago, IL – May 03, 2017 – Zacks.com 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 Applied Optoelectronics, Inc. (NASDAQ: AAOI – Free Report ), Lantronix, Inc. (NASDAQ: LTRX – Free Report ), MKS Instruments, Inc. (NASDAQ: MKSI – Free Report ), PCTEL, Inc. (NASDAQ: PCTI – Free Report ) and Ultra Clean Holdings, Inc. (NASDAQ: UCTT – Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Tuesday’s Analyst Blog:
Nasdaq Rallies on Stellar Tech Showing: 5 Stock Picks
The Nasdaq Composite Index scaled a record high this Monday, courtesy of solid earnings results from the technology sector so far this reporting cycle. The tech-heavy benchmark inched up 0.7% to close at 6,091.60, slightly lower than the intraday high of 6,100.73.
Positive sentiments regarding Apple Inc.’s (NASDAQ:AAPL) soon-to-be-reported results are playing a key role behind the current Nasdaq upswing. The upside is also driven by the robust earnings performance of major technology bigwigs such as Netflix (NASDAQ:NFLX), Inc. and Alphabet (NASDAQ:GOOGL) Inc.
Apple Boosts Tech Stocks
Apple’s stock gained nearly 2%, during the May 1 trading session, to reach a record high of $146.58 per share. The company is slated to report second-quarter fiscal 2017 (Mar 31, 2017) results after the market closes. Higher demand for state-of-the-art products like iPhone and software services such as App store would likely boost Apple’s top- and bottom-line performance in the quarter to be reported.
Our proven model shows that Apple is likely to beat on earnings this fiscal quarter (ended Mar 31, 2017), as it currently carries a favorable Zacks Rank #3 (Hold) and has a positive Earnings ESP . The Most Accurate estimate of $2.03 per share is higher than the Zacks Consensus Estimate of $2.01. This suggests that analysts have very recently revised their estimates upward for Apple, giving the stock an Earnings ESP of 1.00%.
In fact, we project earnings of all the technology stocks in the S&P 500 Index to witness 13.9% year-over-year growth, while revenues are likely to be up 6.1% (read more: The Tech Sector's Strong Earnings Power ).
Inside Story
Prime companies like Netflix and Alphabet reported better-than-expected earnings this season. On Apr 17, Netflix’s first-quarter 2017 earnings of 40 cents surpassed the Zacks Consensus Estimate of 38 cents. The figure also came higher than the year-ago tally of 6 cents per share. The upside was stemmed by sound operational performance and sturdy year-over-year top-line growth.
Alphabet Inc. reported strong first-quarter 2017 results on Apr 27. Quarterly earnings of $7.73 per share surpassed the Zacks Consensus Estimate of $4.24. In addition, revenues of $24.8 billion exceeded the Zacks Consensus Estimate of $19.7 billion. The company noted that the stellar performance was backed by the benefits accrued from ongoing growth-based investments, stronger market demand and robust momentum across new business domains.
Overall, 30 out of the 62 S&P 500 companies have reported earnings till Apr 28, accounting for 57.4% of the sector’s total market capitalization, with 80% topping EPS (earnings per share) estimates and 73.3% coming in ahead of top-line expectations.
5 Best Tech Stocks for Your Portfolio
We have zeroed in on five hot technology stocks below, with the help of our Zacks Stock Screener . These stocks not only sport a Zacks Rank #1 (Strong Buy), but also are poised for significant growth in the near term. You can see the complete list of today’s Zacks #1 Rank stocks here .
Notably, these picks flaunt a VGM score of ‘A’ or ‘B’. Here V stands for Value, G for Growth and M for Momentum and the score is a weighted combination of these three metrics. Such a score allows you to eliminate the negative aspects of stocks and select winners.
Applied Optoelectronics, Inc. (NASDAQ:AAOI – Free Report ) manufactures, designs and sells premium fiber-optic networking products. The company currently carries a VGM score ‘B’. The projected earnings growth rate of the stock for this year is 220.90%, higher than the Electronics - Semiconductors industry’s projected growth rate of 6.60%.
Lantronix, Inc. (NASDAQ:LTRX – Free Report ) offers secured data management and access solutions in the market. The company currently carries a VGM score ‘B’. The projected earnings growth rate of the stock for fiscal 2017 is 50.00%, higher than the Computer - Networking industry’s projected growth rate of 15.50%.
MKS Instruments, Inc. (NASDAQ:MKSI – Free Report ) provides subsystems, instruments and process control solutions in the global forum. The company currently holds a VGM score ‘B’. The projected earnings growth rate of the stock for 2017 is 45.10%, higher than the Electronics - Manufacturing Machinery industry’s projected growth rate of 36.70%.
PCTEL, Inc. (NASDAQ:PCTI – Free Report ), along with its subsidiaries, provides critical telecom solutions in the market. The company currently holds a VGM score ‘B’. The projected earnings growth rate of the stock for this year is 150.00%, as against the Wireless Equipment industry’s projected negative growth rate of 4.90%.
Ultra Clean Holdings, Inc . (NASDAQ:UCTT – Free Report ) creates, engineers, designs various types of tests production tools, subsystems and modules for the semiconductor equipment and capital equipment industry. The company currently holds a VGM score ‘B’. The projected earnings growth rate of the stock for 2017 is 139.00%, as against the Electronics - Manufacturing Machinery industry’s projected growth rate of 36.70%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. . See these critical buys and sells free >>
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 >>.
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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/performance for information about the performance numbers displayed in this press release.
Applied Optoelectronics, Inc. (AAOI): Free Stock Analysis Report
Lantronix, Inc. (LTRX): Free Stock Analysis Report
MKS Instruments, Inc. (MKSI): Free Stock Analysis Report
PC-Tel, Inc. (PCTI): Free Stock Analysis Report
Ultra Clean Holdings, Inc. (UCTT): Free Stock Analysis Report
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