CHICAGO, Sept. 10, 2013 /PRNewswire/ -- Stocks featured in this week's Zacks Industry Rank analysis include Qihoo 360 Tech Co Ltd (NYSE: QIHU-Free Report) and SMART Tech Cl A (Nasdaq: SMT-Free Report).
Zacks Industry Rank Analysis is written by John Blank, PhD, Chief Equity Strategist, Zacks.com.
Investors Connect with Internet Software Sector
The Wright Brothers were credited with the first flight in 1903. Only 66 years later, we were walking on the moon. Some developments are so grand in scale, they defy the very gravity widely believed to weigh on their possibilities. Though not without its crashes, internet technology continues providing lift to profits in ways never imagined.
The Internet Software and Services sector of the Zacks Industry Rank list gained 8 positions last week with a couple of key estimate revisions. The category of 14 companies now holds a rank of 33 out of 260 sectors. With 20 positive earnings estimate revisions compared to only 3 negative revisions, an upward draft has given rise to an average positive Earnings per Share (EPS) surprise of +36%.
Connectivity is the propeller behind this momentum, allowing innovation to travel beyond borders and work for those who need it worldwide, and are willing to pay for it, worldwide. As more technology finds its way into new hands, more possibilities exist to broaden a market.
The two following companies have been upgraded this week to a Zacks Rank #1 (Strong Buy). An upgrade in rank from a Buy or Hold to a Strong Buy is noteworthy and may foretell the performance of a stock in response to future positive earnings estimate revisions. Keeping sector-wide trends on your radar can be pivotal in understanding the trade winds of future value. Each of these companies also hold a Zacks Recommendation of "Outperform."
While the P/E in these instances may be high, history should tell us that the sky is certainly not the limit.
Qihoo 360 Tech Co Ltd (NYSE: QIHU-Free Report)
QIHU was upgraded to a Zacks Rank #1 (Strong Buy) last week from #3 (Hold). Its next expected earnings report is on November 18, 2013.
Qihoo 360 Technology Co Ltd. offers Internet and mobile security products. The company also provides advertising services by offering marketing opportunities through its mobile-search platform. With the massive proliferation of technology in the East, where it holds a market share advantage, Qihoo has been responding to strong investor confidence with increased profits.
It's most recent earning's surprise was 100%.
SMART Tech Cl A (Nasdaq: SMT-Free Report)
SMT is a Zacks Rank #1 (Strong Buy). It moved up from a Zacks Rank #3 (Hold) last week as well. This company reports quarterly earnings on November 6, 2013.
SMART Technologies Inc. designs, develops and sells interactive technology products and solutions for the education, business and government sectors. The company is a global provider of interactive whiteboards and complementary solutions.
Its most recent earnings surprise was +200%.
Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2564.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Len 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 3:1 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 by going to http://at.zacks.com/?id=2565.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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.
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.