CHICAGO, Oct. 20, 2014 /PRNewswire/ -- 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 the Apple Inc. (Nasdaq:AAPL-Free Report), Microsoft (Nasdaq:MSFT-Free Report), InvenSense, Inc. (NYSE:INVN-Free Report) and Facebook Inc. (Nasdaq:FB-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
Will Apple (AAPL) Beat Earnings Expectations This Quarter?
We expect iPhone-maker Apple Inc. (Nasdaq:AAPL-Free Report) to beat expectations when it reports fourth quarter fiscal 2014 results on Oct 20. The company has posted an average positive earnings surprise of 6.51% over the past four quarters.
Why a Likely Positive Surprise?
Our proven model shows that Apple is likely to beat earnings because it has the right combination of two key ingredients.
Positive Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at +4.62%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.
Zacks Rank # 2 (Buy): Note that stocks with Zacks Rank #1, 2 and 3 have a significantly higher chance of beating earnings.
Conversely, Sell-rated stocks (#4 and 5) should never be considered going into an earnings announcement.
The combination of Apple's Zacks Rank #2 and 4.62% ESP makes us very confident in looking for a positive earnings beat on Oct 20.
What is Driving the Better-than-Expected Earnings?
We believe that the partnership with China Mobile will help Apple in the near term. Apple's recently launched large screen iPhones have received good response worldwide as it registered 10 million sales in the first weekend of the release itself.
However, on account of certain regulatory issues, its release in China got delayed by a month. We believe that the prospects of the large screen iPhones are bright in China, which happens to be the world's largest market for smartphones.
Moreover, the launch of the two new iPads will further help in reviving sales by bringing back lost enthusiasm among consumers regarding the product. The availability of Microsoft's (Nasdaq:MSFT-Free Report) Office and the partnership with International Business Machines will boost iPad adoption among enterprises over the long haul.
However, Apple continues to face significant competition from Asian handset makers such as Samsung, which will remain an overhang on the stock in the near term.
Other Stocks to Consider
Apple is not the only firm looking up this earnings season. We also see likely earnings beats coming from these industry peers:
InvenSense, Inc. (NYSE:INVN-Free Report) with an Earnings ESP of +10.00% and a Zacks Rank #2.
Facebook Inc. (Nasdaq:FB-Free Report) with an Earnings ESP of +6.25% and a Zacks Rank #2.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock 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.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on AAPL - FREE
Get the full Report on MSFT - FREE
Get the full Report on INVN - FREE
Get the full Report on FB - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
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.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com
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 http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-zacks-analyst-blog-highlights-apple-microsoft-invensense-and-facebook-228418086.html
SOURCE Zacks Investment Research, Inc.
Related Links
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article