|By PR Newswire||
|February 7, 2014 09:30 AM EST||
CHICAGO, Feb. 7, 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 LinkedIn (NYSE:LNKD-Free Report), Twitter (NYSE:TWTR-Free Report), Constant Contact, Inc. (Nasdaq:CTCT-Free Report), RealPage, Inc. (Nasdaq:RP-Free Report) and Rackspace Hosting, Inc. (NYSE:RAX-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:
LinkedIn Mixed, Lower Guidance Tanks Shares
After the bell Thursday, LinkedIn (NYSE:LNKD-Free Report) reported its fiscal 4th quarter and full-year numbers. And while the professional Internet media firm topped estimates on revenues, it was an earnings miss on the bottom line. LNKD shares are sinking like a stone in the after-market.
Earnings of 5 cents per share (before non-recurring items, stock-based compensation and amortization) missed the Zacks Consensus Estimate of 8 cents. Yet revenues of $447.2 million in the quarter topped the Zacks Consensus Estimate of $440 million. LinkedIn's 277 million members overall was more than analysts had expected. Talent Solutions, which make up over half the company's total business, increased 53% year over year, and Marketing Solutions and Premium Subscriptions also demonstrated healthy year over year growth.
But the guidance? That's another story.
Both for fiscal Q1 and full-year 2014, LinkedIn low-balled their estimates well below where we anticipated guidance would be. While the company estimates revenues between $455-460 million next quarter -- a steady improvement from Q4 -- guidance is lower than the Zacks Consensus Estimate by $7 million. Full-year guidance of $2.02-2.05 billion is similarly down from the Zacks estimate of $2166 million we were expecting.
So now analysts will get busy downwardly revising estimates, which will likely keep LinkedIn a Zacks Rank #5 at least a little while longer. But first, the after-market is letting LinkedIn know how it feels about revenue projections like these, and the results aren't pretty: LNKD shares are down around 10% just since the earnings announcement. In regular-day trading LinkedIn was up 4.24%; apparently investors thought the company's report was going to be a lot better received than this.
As we saw with Twitter (NYSE:TWTR-Free Report) yesterday failing to reach an expected growth target and seeing the stock get punished in late trading, so we see here today with LinkedIn not expecting to keep up its growth trajectory in the current year. Perhaps much was based on some pretty lofty expectations -- speaking of, LinkedIn's market cap is the very definition of a lofty expectation -- and cooler heads will prevail once everything is sorted out. But in the meantime, if you're linked to LinkedIn, you're probably feeling a little dragged down right now.
Nadella's Niche: 3 Cloud Choices
The elevation of Nadella and his successes with Microsoft's cloud division illustrate how crucial the segment will be going forward. Bessemer Venture Partners (BVP) launched a Cloud Index in July last year which captures the fortunes of the top 30 cloud computing companies. These companies were collectively valued at $100 billion at the time. This was a clear indication, BVP said, that leveraging the cloud to power software and data storage was a theme that would come to dominate the tech domain.
Below we present three companies operating in the cloud computing domain, each of which also have a good Zacks Rank.
Constant Contact, Inc.
Constant Contact, Inc. (Nasdaq:CTCT-Free Report) provides engagement marketing tools available on demand. These are customized for small companies, non-profit organizations and associations. Among its prominent offerings are products which can be used for social media and event marketing, email marketing as well as survey tools.
Constant Contact, Inc. holds a Zacks Rank #2 (Buy) and has expected earnings growth of 98.00%. The forward price-to-earnings Ratios (P/E) for the current financial year (F1) is relatively high at 53.70. However the price to sales ratio (P/S) is 2.9, lower than the industry average of 5.4.
RealPage, Inc. (Nasdaq:RP-Free Report) offers demand software solutions aimed at the housing rental sector. Among the company's products are property management systems and seven groups of valued added services which are software enabled. The company made important acquisitions last year, such as Windsor Compliance, a compliance monitoring services company.
Currently the company holds a Zacks Rank #2 (Buy) and has expected earnings growth of 32.50%. It has a P/E (F1) of 39.53. At 4.3, the company's P/S is lower than the industry average of 5.4.
Rackspace Hosting, Inc.
Our third choice is Rackspace Hosting, Inc. (NYSE:RAX-Free Report). The company has a wide range of cloud computing products. This includes public, private, dedicated and hybrid hosting. Operating across 120 countries, the company has a presence in Zurich, Hong Kong, Sydney and Amsterdam, aside from the U.S.
Besides a Zacks Rank #2 (Buy), RAX has expected earnings growth of 19.60%. It has a relatively higher P/E (F1) of 50.48. However, its P/S is 3.6, lower than the industry average of 5.4.
With major tech players increasingly focusing on the cloud, this domain may offer significant growth in the future. Operating exclusively in the cloud business, these companies may be best placed to leverage those gains and would make good additions to your portfolio.
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.
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.
SOURCE Zacks Investment Research, Inc.
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Feb. 13, 2016 11:30 AM EST Reads: 440
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Feb. 13, 2016 11:30 AM EST Reads: 152
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
Feb. 13, 2016 11:30 AM EST Reads: 276
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
Feb. 13, 2016 11:30 AM EST
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
Feb. 13, 2016 11:00 AM EST Reads: 142
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
Feb. 13, 2016 11:00 AM EST
There will be new vendors providing applications, middleware, and connected devices to support the thriving IoT ecosystem. This essentially means that electronic device manufacturers will also be in the software business. Many will be new to building embedded software or robust software. This creates an increased importance on software quality, particularly within the Industrial Internet of Things where business-critical applications are becoming dependent on products controlled by software. Qua...
Feb. 13, 2016 11:00 AM EST
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, will give users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion w...
Feb. 13, 2016 10:30 AM EST
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
Feb. 13, 2016 10:00 AM EST
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
Feb. 13, 2016 09:45 AM EST Reads: 228
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
Feb. 13, 2016 09:30 AM EST
The Art of DevOps provides a fun overview to help teams understand DevOps. Written in the style of the famous 6th century Chinese manuscript “The Art of War,” this eBook describes DevOps in the form of a mission to continuously deliver assets to the operational battlegrounds safely, securely, and quickly. It’s a fun read with valuable insights.
Feb. 13, 2016 09:30 AM EST
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
Feb. 13, 2016 09:00 AM EST Reads: 344
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
Feb. 13, 2016 09:00 AM EST Reads: 246
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
Feb. 13, 2016 08:00 AM EST