CHICAGO, Nov. 3, 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 Sprint Corporation (NYSE:S-Free Report), Lumos Networks Corp. (Nasdaq:LMOS-Free Report), Ruckus Wireless, Inc. (NYSE:RKUS-Free Report) and DragonWave Inc. (Nasdaq:DRWI-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:
What's in Store for Sprint This Quarter?
Sprint Corporation (NYSE:S-Free Report) - the third largest telecom operator in the U.S. - is scheduled to report second-quarter fiscal 2014 financial numbers on Nov 3, after market close.
Last quarter, the company had delivered an impressive 125.00% positive earnings surprise. Let's see how things are shaping up for this announcement.
Factors Likely to Influence this Quarter
Sprint is progressing well with its network modernization and integration efforts, which will fortify its position in the wireless industry. The company's core platform business is dependent on the success of its multi-billion dollar restructuring program known as Network Vision.
Sprint has reportedly announced plans to shut down its WiMAX service, effective Nov 6, 2015. We believe while the discontinuation of old services will create opportunities for adding the latest technology and services under the company's portfolio, cost incurred thereon is likely to hurt margins over the near term.
Moreover, given more than 95% U.S. wireless penetration, competition is likely to remain intense, which could pressure top and bottom-line results as carriers compete for market share. Also, going forward, capital expenditure for the year is expected to increase owing to expansion of Sprint Spark throughout fiscal 2014. To add to the woes, substantial iPhone subsidies, increased postpaid churn coupled with higher spending may act as headwinds for Sprint, going forward.
Earnings Whispers?
Our proven model does not conclusively show that Sprint is likely to beat the Zacks Consensus Estimate this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. Unfortunately, that is not the case here as elaborated below.
Negative Zacks ESP: Sprint has an earnings ESP of -20.00%. This is because the Most Accurate estimate stands at a loss of 6 cents while the Zacks Consensus Estimate is at a loss of 5 cents.
Zacks Rank: Sprint has a Zacks Rank #4 (Sell). We caution against stocks with Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
However, here are some companies to consider as our model shows these have the right combination of elements to post an earnings beat this quarter.
Lumos Networks Corp. (Nasdaq:LMOS-Free Report) has an earnings ESP of +15.39% and carries a Zacks Rank #2 (Buy).
Ruckus Wireless, Inc. (NYSE:RKUS-Free Report) has an earnings ESP of +60.00% and carries a Zacks Rank #3 (Hold).
DragonWave Inc. (Nasdaq:DRWI-Free Report) has an earnings ESP of +16.67% and carries a Zacks Rank #3.
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 S - FREE
Get the full Report on LMOS - FREE
Get the full Report on RKUS - FREE
Get the full Report on DRWI - 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
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
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