The Zacks Analyst Blog Highlights: LinkedIn, AOL, Facebook, Paychex and Qiagen
CHICAGO, May 1, 2013 /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 LinkedIn Corporation (NYSE: LNKD), AOL Inc. (NYSE: AOL), Facebook Inc. (Nasdaq: FB), Paychex Inc. (Nasdaq: PAYX) and Qiagen (Nasdaq: QGEN).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday's Analyst Blog:
LinkedIn Likely to Post Positive Surprise
We expect professional networking solution provider LinkedIn Corporation (NYSE: LNKD) to beat expectations when it reports third-quarter 2013 results on May 2.
Why a Likely Positive Surprise?
Our proven model shows that LinkedIn is likely to beat the earnings estimate because it has the right combination of two key ingredients.
Zacks ESP: Expected Surprise Prediction or ESP (Zacks Earnings ESP: A Better Method), which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate is at +120.0%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.
Zacks Rank #2 (Buy): LinkedIn carries a Zacks Rank #2 (Buy). Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating estimates. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.
The combination of LinkedIn's Zacks Rank #2 (Buy) and +120% ESP makes us very confident in looking for an earnings beat on May 2.
What is Driving the Better than Expected Earnings?
The company has been delivering good numbers over the last few quarters, driven by the increase in demand for their professional networking solutions, which provides added benefits to prospective employers and talent acquisition firms searching for skilled manpower. As a result, the Talent Solutions and Premium Subscription segments were have strengthened over the last few quarters. Moreover, the purchase of Pulse greatly improves its marketing efforts in the Talent Solutions business.
Other Stocks to Consider
LinkedIn is not the only firm looking up this earnings season. We also see likely earnings beats coming from these 3 industry peers:
AOL Inc. (NYSE: AOL), Earnings ESP of +3.03% and Zacks Rank #2 (Buy)
Facebook Inc. (Nasdaq: FB), Earnings ESP of +12.50%and Zacks Rank #2 (Buy)
Paychex Inc. (Nasdaq: PAYX), Earnings ESP of +2.70% and Zacks Rank #2 (Buy)
Qiagen Acquires Ingenuity Systems
In an attempt to manage its growing volume of genomic data, Qiagen (Nasdaq: QGEN) recently acquired Calif.-based privately owned company, Ingenuity Systems, Inc. Through the acquisition, Qiagen will have access to Ingenuity's proprietary Ingenuity Knowledge Base and software applications, which is an advanced knowledge system and analysis solution for complex biomedical information. However, financial terms of the deal were not disclosed.
Over the recent past volume of data generation through next-generation sequencing (NGS) has been increasing. This has compelled Qiagen to realize the need for advanced solutions of Ingenuity. These solutions, according to the company, will act as a critical success factor in analysis and interpretation of complex biological data.
Qiagen claims that, with the Ingenuity products, the company will be able to widen its scope in the rapidly growing market of sequencing with faster and efficient data analysis. Ingenuity stated that, while an entire human genome sequence takes only 2 days to complete, the data analysis can take months and years. However, the Ingenuity product line needs some time (may be some minutes) for data interpretation.
Viewing the substantial potential of the molecular diagnostic market globally, Qiagen is currently focusing on expanding its diagnostics products offering. The company currently derives around 50% of its total revenue from this segment, which is likely to increase with this acquisition. Qiagen has acquired several companies to expand its product portfolio, the significant ones are Cellestis and Ipsogen in 2011.
We are encouraged by Qiagen's focus on strategic initiatives to drive growth and profitability in the molecular diagnostics market. Its innovative tests in the genomic/esoteric arena, with a focus on the high-margin esoteric testing business, are expected to accelerate the company's sales growth on the back of growing market demand, not only domestic but worldwide.
This is also provoking several small laboratory companies to introduce their comprehensive portfolio of genetic tests.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
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: http://at.zacks.com/?id=5517
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which 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 at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
SOURCE Zacks Investment Research, Inc.