|By PR Newswire||
|January 3, 2014 09:30 AM EST||
CHICAGO, Jan. 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 Facebook Inc (Nasdaq:FB-Free Report), Netflix (Nasdaq:NFLX-Free Report), AOL Inc. (NYSE:AOL-Free Report), Blucora Inc. (Nasdaq:BCOR-Free Report) and Wyndham Worldwide Corporation (NYSE:WYN-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Thursday's Analyst Blog:
Facebook Now a Strong Buy
On Jan 2, 2014, Zacks Investment Research upgraded Facebook Inc (Nasdaq:FB-Free Report)to a Zacks Rank #1 (Strong Buy). A strong return of 123.9% over the past six months, long-term expected earnings growth rate of 29.5%, impressive third-quarter results and a positive estimate revision trend make Facebook an attractive investment opportunity.
Why the Upgrade?
Facebook reported strong third-quarter results, beating the Zacks Consensus Estimate on both lines. Earnings of 17 cents per share improved considerably from 6 cents in the year-ago quarter. Revenues surged 60.0% from the year-ago quarter to $2.02 billion.
Mobile comprised 49.0% of ad revenues, up from 41.0% in the previous quarter. The sequential increase in mobile ad revenues was driven by an increase in average price per mobile ad, number of mobile users and ads shown per mobile user.
We note that the company has gained significant traction in its mobile ad business within a very short span of time. This, combined with its massive user base and its ability to track personal details over time, makes it a formidable force in the online ad market.
To boost Facebook usage among teenagers, the company decided to allow users in the age group of 13 to 17 to make public posts, which is a positive. The company also announced that it will restrict ad quantity in newsfeed in order to improve user engagement.
Moreover, the new products such as Video ads and Reader are expected to drive top-line growth, going forward. However, higher investments to expand mobile offerings and increasing competition are expected to hurt margins in the near term.
The Zacks Consensus Estimate for fiscal 2013 remained steady at 60 cents per share over the last 60 days. For fiscal 2014, the Zacks Consensus Estimate increased a penny to 87 cents per share over the same time frame.
Other Stocks to Consider:
Other players in the technology industry, which look attractive at current levels, include Netflix (Nasdaq:NFLX-Free Report), AOL Inc. (NYSE:AOL-Free Report) and Blucora Inc. (Nasdaq:BCOR-Free Report). All these stocks carry the same Zacks Rank as Facebook.
Wyndham Upgraded to Outperform
On Jan 2, we upgraded our recommendation on leading hotelier, Wyndham Worldwide Corporation (NYSE:WYN-Free Report), from Neutral to Outperform following its better-than-expected third-quarter 2013 results and increased earnings guidance.
Why the Upgrade?
Amid a challenging economic environment, Wyndham has succeeded in posting solid top-line growth and higher earnings for the past three quarters, driven by strong performance across all the three operating segments.
The company comfortably surpassed the Zacks Consensus Estimate for both revenues and earnings in the past two out of three quarters. In the recently concluded third-quarter 2013, Wyndham's earnings grew 25% year over year to $1.41 per share, benefiting from higher top line, improved EBITDA (earnings before interest, taxes, depreciation and amortization) and lower share count. Quarterly revenues also increased 13% year over year. Solid growth in all the operating segments aided the quarterly sales.
Following a better-than-expected performance in the third quarter, the Zacks Rank #2 (Buy) company raised the 2013 earnings guidance for the second time in a row. The company now projects adjusted earnings per share within the range of $3.78–$3.80 up from prior expectations of $3.66–$3.76.
Reasons for the Positive Bias
Along with the strong third-quarter results, the company's growth story looks attractive. Wyndham is engaged in offering individual and business customers a range of hospitality services across various accommodation alternatives and price ranges through its premier portfolio of 20 global brands.
With the economy beginning to improve gradually, system-wide occupancies in North America appear to be pretty steady and above the prior peak achieved in 2006. According to Smith Travel Research, the U.S. supplies are expected to be nearly 1.1% in 2014. With a low supply growth environment, the company will be able to raise its room rate, going forward.
Wyndham derives a substantial chunk of revenues from its vacation ownership or timeshare business, which has a solid long-term potential. This fee-for-service business reduces capital requirement, resulting in higher free cash flow. The company is focused on rebalancing its portfolio by increasing contributions from fee-for-service businesses, thus introduced a new initiative, Wyndham Asset Affiliation Model (WAAM) in 2009.
We believe the company's back-to-back acquisitions, substantial development pipeline and significant international exposure will boost growth, going ahead. Moreover, regular share repurchase activity and dividend distribution helped augment investors' confidence in the company.
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.
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.
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.
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.
SOURCE Zacks Investment Research, Inc.
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
Feb. 20, 2017 06:45 AM EST Reads: 166
In the first article of this three-part series on hybrid cloud security, we discussed the Shared Responsibility Model and examined how the most common attack strategies persist, are amplified, or are mitigated as assets move from data centers to the cloud. Today, we’ll look at some of the unique security challenges that are introduced by public cloud environments. While cloud computing delivers many operational, cost-saving and security benefits, it takes place in a public, shared and on-demand ...
Feb. 20, 2017 06:30 AM EST Reads: 1,070
Both SaaS vendors and SaaS buyers are going “all-in” to hyperscale IaaS platforms such as AWS, which is disrupting the SaaS value proposition. Why should the enterprise SaaS consumer pay for the SaaS service if their data is resident in adjacent AWS S3 buckets? If both SaaS sellers and buyers are using the same cloud tools, automation and pay-per-transaction model offered by IaaS platforms, then why not host the “shrink-wrapped” software in the customers’ cloud? Further, serverless computing, cl...
Feb. 20, 2017 06:00 AM EST Reads: 1,626
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin, ...
Feb. 20, 2017 05:30 AM EST Reads: 4,577
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Feb. 20, 2017 05:15 AM EST Reads: 1,348
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Feb. 20, 2017 05:15 AM EST
With the proliferation of both SQL and NoSQL databases, organizations can now target specific fit-for-purpose database tools for their different application needs regarding scalability, ease of use, ACID support, etc. Platform as a Service offerings make this even easier now, enabling developers to roll out their own database infrastructure in minutes with minimal management overhead. However, this same amount of flexibility also comes with the challenges of picking the right tool, on the right ...
Feb. 20, 2017 03:30 AM EST Reads: 6,147
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 20, 2017 03:15 AM EST Reads: 1,339
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Feb. 20, 2017 02:00 AM EST Reads: 6,105
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
Feb. 20, 2017 02:00 AM EST Reads: 4,156
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Feb. 20, 2017 01:00 AM EST Reads: 5,215
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
Feb. 20, 2017 01:00 AM EST Reads: 833
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Feb. 20, 2017 12:45 AM EST Reads: 2,400
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
Feb. 20, 2017 12:15 AM EST Reads: 972
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Feb. 20, 2017 12:00 AM EST Reads: 1,415