Welcome!

News Feed Item

Zacks Industry Outlook Highlights: Exlservice Holdings, ExamWorks Group, CoreLogic and Clean Harbors

CHICAGO, March 20, 2014 /PRNewswire/ -- Today, Zacks Equity Research discusses the Business Services, including Exlservice Holdings, Inc. (Nasdaq:EXLS-Free Report), ExamWorks Group, Inc. (NYSE:EXAM-Free Report), CoreLogic, Inc. (NYSE:CLGX-Free Report) and Clean Harbors Inc. (NYSE:CLH-Free Report).

Zacks Investment Research, Inc., www.zacks.com.

Industry: Business Services

Link: http://www.zacks.com/commentary/31768/business-services-stock-outlook---march-2014

Earnings for the sector grew 10.6% in the fourth quarter faring better than the overall 9.4% growth for the S&P 500. The Q4 earnings growth was an improvement over 8.6% growth in the third quarter. Revenues showed an improvement of 5.6% faring much better than the S&P 500's year-over-year average of 0.8%. Revenue growth also improved sequentially.

In terms of surprises, the sector's performance was weaker than the broader market, with 42.9% of Business Services companies beating earnings expectations compared with the 'beat ratio' of 64.3% for the S&P 500 as a whole.

Looking ahead, 2014 and 2015 earnings are expected to improve 12.3% and 13.7% respectively. This compares favorably to the +8.1% and 11.6% growth for the S&P 500 in 2014 and 2015.. Revenue growth is expected at 4.9% for 2014 and 6.1% for 2015 for the sector compared with a minimal improvement of 1.1% and 2.2% for the respective years for the S&P 500. The Zacks Business Services sector as a whole accounts for 3.2% of the S&P 500 index's total market capitalization and is expected to bring in roughly 2.3% of the index's total earnings in 2014.

For a detailed look at the earnings outlook for the Business Services and other sectors, please check our weekly Earnings Trends report.

Top Picks

Considering Zacks Rank, share prices, earnings surprise history and future growth prospects we think the following two stocks can enrich ones portfolio.

Exlservice Holdings, Inc. (Nasdaq:EXLS-Free Report): This provider of business process solutions, utilizing operations management, analytics and technology primarily in the United States and the United Kingdom delivered positive earnings in the last four quarters in with an average beat of almost 8.3%. Share prices also gained about 11% year to date. Given the prospect of the company we find more room for upside. Our model projects earnings growth of about 16% over the long term.

The growth drivers include new relations signed with initial scope of several million dollars in annual contract value once implemented. The company also continues to benefit from strong secular demand. U.S.-based health insurance will continue to experience rising volumes, pressure to improve patient outcomes and a need to comply with regulatory change.

The company also engages in share buyback that down the line would enhance shareholder value.

ExamWorks Group, Inc. (NYSE:EXAM-Free Report): This provider of independent medical examinations (IMEs), peer and bill reviews, Medicare compliance and other related services delivered positive earnings in three of the last four quarters in with an average beat of almost 29.3%. Share prices also gained about 17% year to date. Given the prospect of the company, we find more potential left. Our model projects earnings to grow about 20% over the long term.

The company continues to benefit from market share gains that lead to superior organic revenue growth, technology solutions that drive operating leverage and expanding margins, and considerable cash flow. Its compelling inorganic growth story is also expected to boost its performance level.

Both these stocks carry a Zacks Rank #2 (Buy).

Stocks to Avoid

Benchmarking the above attributes we also have two stocks that you may like to avoid.

CoreLogic, Inc. (NYSE:CLGX-Free Report): This provider of property, financial and consumer information, analytics, and services in the United States, Australia and New Zealand continues to suffer from the impact of lower mortgage volumes, integration costs related to the BoA integration cost as well as severance and facilities charges.

The company posted negative surprise with an average of 1.1% over the last four quarters. The underperformance was reflected in share price, which declined 10.6% year to date.

Clean Harbors Inc. (NYSE:CLH-Free Report): This provider of environmental, energy, and industrial services primarily in the United States, Puerto Rico and Canada delivered negative surprise of 7.05% in the last four quarters. Share prices also showed downward movement by 10.2% year to date.

In mid-January, the refining majors led by Motiva, lowered their group two lubricant pricing by 25–30 cents. This pricing affected the company's contracted base oil volumes.

Both these stocks carry a Zacks Rank #5 (Strong Sell).

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!  Click here for your free subscription to Profit from the Pros.

Get the full Report on EXLS- FREE
Get the full Report on EXAM- FREE
Get the full Report on CLGX- FREE
Get the full Report on CLH- 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
[email protected]
http://www.zacks.com

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant th...
Digital transformation is changing the face of business. The IDC predicts that enterprises will commit to a massive new scale of digital transformation, to stake out leadership positions in the "digital transformation economy." Accordingly, attendees at the upcoming Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA, Oct 31-Nov 2, will find fresh new content in a new track called Enterprise Cloud & Digital Transformation.
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software. They hope to capture value from emerging technologies such as IoT, SDN, and AI. Ultimately, irrespective of the vertical, it is about deriving value from independent software applications participating in an ecosystem as one comprehensive solution. In his session at @ThingsExpo, Kausik Sridhar, founder and CTO of Pulzze Systems, will discuss how given the magnitude of today's applicati...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...