We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nasdaq, McAfee, Facebook, Twitter and Snap highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – August 19, 2021 – Zacks Equity Research Shares of Nasdaq, Inc. (NDAQ - Free Report) as the Bull of the Day, McAfee Corp. as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Facebook, Inc. , Twitter, Inc. and Snap Inc. (SNAP - Free Report) .
Nasdaq is a Zacks Rank #2 (Buy) and is the home to numerous technology and biotechnology stocks. This exchange is the place where millions of shares are traded on a daily basis. The company itself is public and listed on the NASDAQ exchange and estimates are moving higher. Let's take a deeper look at this stock in this Bull of the Day article.
Description
Founded in 1971 and headquartered in New York, Nasdaq Inc. is a leading provider of trading, clearing, marketplace technology, regulatory, securities listing, information and public and private company services.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For NDAQ, I see a great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 9.2%, which means that they are posting results that are above expectations.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For NDAQ, I see estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has moved from $1.64 to $1.74.
Next quarter has moved from $1.68 to $1.75.
The full-year number has increased from $6.90 to $7.34 over the last 60 days.
Next year is at $7.49 and that is up from $7.16 over the same time horizon.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for NDAQ is very reasonable. I see a 25x forward earnings multiple and sales growth in the most recent quarter coming in just over 1%. The price to book multiple of 4.7x is a little above the industry average. Price to sales comes in at 5.4x and that is also a little above the industry average.
I see operating margins increasing in each of the last three quarters and when you see that along with revenue growth it is easy to see that earnings estimates will continue to increase.
McAfee is a Zacks Rank #5 (Strong Sell) despite recently meeting the Zacks Consensus Estimate. Stocks that meet or beat the number don't often fall to a Zacks Rank #5 (Strong Sell) so let's take a look at why that is the case in this Bear of the Day article.
Description
McAfee Corp. is the device-to-cloud cybersecurity company. It creates consumer and business solutions. McAfee Corp. is based in San Jose, California.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of MFCE, I see one beat and one meet and two misses of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #5 (Strong Sell).
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For MFCE I see estimates fluctuating.
This quarter has dipped from $0.25 to $0.22.
Next quarter has slid from $0.27 to $0.23 over the last 60 days.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.
The 2021 consensus number has fallen from $1.21 to $1.08.
The 2022 number has moved from $1.35 to $1.23 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
3 Stocks to Gain from Unabated Popularity of Social Media
Social media has become one of the most popular online engagement platforms across the world thanks to the outbreak of coronavirus last year. When people were compelled to stay at home and practice social distancing, social media allowed them to stay in touch with each other virtually.
Social media has emerged as an entertainment hub as well. As people searched for at-home forms of entertainment with movie theatres and restaurants being shut, several celebrities and artists decided to engage with fans by live streaming on social media platforms. These platforms have introduced short videos or images, which disappear after a set period of time. This form of content has become widely popular among users, owing to its short duration.
Other factors like the rising availability of the Internet and smartphones across the world have also boosted social media adoption. A report by Hootsuite published on Jul 22 stated that in July 2021, social media users increased more than 13% year over year, with the rise of more than half a billion users in 12 months. The report further stated that as of July, there were 4.48 billion social media users worldwide, equivalent to about 57% of the world's population.
It is no surprise that social media has also become one of the most popular platforms for digital advertising — a major source of revenues for the social media companies. Firms can reach out to relevant users as they can choose their audience.
Reaching out to the right audience means that users will be more interested in what the firm has to offer, thereby increasing the chances of generating sales. It's also interesting to note that owing to the popularity of short videos on social media, several firms are utilizing them to engage with users.
Firms also have analytics tools at their disposal to measure the success of their advertisement campaigns. Moreover, these conveniences are offered to firms at a comparatively lesser cost than the traditional advertising methods.
Reflective of the myriad conveniences that both users and firms are enjoying on social media, it is no surprise that the market is expected to grow further. Per a report by the Business Research Company, the social media market is estimated to witness a CAGR of 8.2% in 2021 and 32% by 2025.
3 Social Media Stocks to Watch
Social media remains one of the most favored ways of connecting with people. Firms are also using social media for advertising their products and services to appropriate people, thereby boosting profitability. This seems then a prudent time to take a look at social media names that should continue to thrive going forward. We have selected three such stocks that carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Facebook is one of the most popular social media platforms and the company is benefiting from increased mobile ad revenues. In second-quarter 2021, Facebook's number of monthly active users increased 7.2% year over year. On Jun 22, Facebook announced that it is expanding its Shops feature to WhatsApp and Facebook Marketplace.
Shares of Facebook have risen 31.2% year to date and it currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased nearly 7% over the past 60 days. The company's expected earnings growth rate for the current year is 39.7%.
Twitter offers a platform that allows users to consume, create, distribute and discover content. In the second quarter of 2021, the company's advertising revenues grew 87% year over year. The company is also focusing on livestreaming and on Jan 25, a multi-year deal between NBCUniversal and Twitter was announced with NBCUniversal bringing live content like Golden Globes, and others to Twitter.
Shares of this Zacks Rank #3 company have risen 16.1% year to date. The Zacks Consensus Estimate for its current-year earnings increased 17.3% over the past 60 days. The company's expected earnings growth rate for the current year is more than 100%.
Snap offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate through short videos and images. On Jun 24, Universal Music Group and Snap announced that they have signed a multifaceted global agreement, allowing Snapchat users to incorporate Universal's "catalog of recorded music and content into creative tools."
Shares of Snap have risen 43.4% year to date. The Zacks Consensus Estimate for its current-year earnings increased 47.8% over the past 60 days. The Zacks Rank #3 company's expected earnings growth rate for the current year is more than 100%.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nasdaq, McAfee, Facebook, Twitter and Snap highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – August 19, 2021 – Zacks Equity Research Shares of Nasdaq, Inc. (NDAQ - Free Report) as the Bull of the Day, McAfee Corp. as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Facebook, Inc. , Twitter, Inc. and Snap Inc. (SNAP - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Nasdaq is a Zacks Rank #2 (Buy) and is the home to numerous technology and biotechnology stocks. This exchange is the place where millions of shares are traded on a daily basis. The company itself is public and listed on the NASDAQ exchange and estimates are moving higher. Let's take a deeper look at this stock in this Bull of the Day article.
Description
Founded in 1971 and headquartered in New York, Nasdaq Inc. is a leading provider of trading, clearing, marketplace technology, regulatory, securities listing, information and public and private company services.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For NDAQ, I see a great history of beating the Zacks Consensus Estimate. There are four beats over the last four quarters.
The average positive earnings surprise over the last fours quarters works out to be 9.2%, which means that they are posting results that are above expectations.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For NDAQ, I see estimates moving higher.
Over the last 60 days, I see a few increases.
This quarter has moved from $1.64 to $1.74.
Next quarter has moved from $1.68 to $1.75.
The full-year number has increased from $6.90 to $7.34 over the last 60 days.
Next year is at $7.49 and that is up from $7.16 over the same time horizon.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for NDAQ is very reasonable. I see a 25x forward earnings multiple and sales growth in the most recent quarter coming in just over 1%. The price to book multiple of 4.7x is a little above the industry average. Price to sales comes in at 5.4x and that is also a little above the industry average.
I see operating margins increasing in each of the last three quarters and when you see that along with revenue growth it is easy to see that earnings estimates will continue to increase.
Bear of the Day:
McAfee is a Zacks Rank #5 (Strong Sell) despite recently meeting the Zacks Consensus Estimate. Stocks that meet or beat the number don't often fall to a Zacks Rank #5 (Strong Sell) so let's take a look at why that is the case in this Bear of the Day article.
Description
McAfee Corp. is the device-to-cloud cybersecurity company. It creates consumer and business solutions. McAfee Corp. is based in San Jose, California.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market's expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
In the case of MFCE, I see one beat and one meet and two misses of the Zacks Consensus Estimate. This alone does not make the stock a Zacks Rank #5 (Strong Sell).
The Zacks Rank does care about the earnings history, but it is much more heavily influenced by the movement of earnings estimates.
Earnings Estimates
The Zacks Rank tells us which stocks are seeing earnings estimates move higher or in this case lower. For MFCE I see estimates fluctuating.
This quarter has dipped from $0.25 to $0.22.
Next quarter has slid from $0.27 to $0.23 over the last 60 days.
The Zacks Rank is more heavily influenced by the move in the annual numbers, and the movement is negative for those numbers.
The 2021 consensus number has fallen from $1.21 to $1.08.
The 2022 number has moved from $1.35 to $1.23 over the last 60 days.
Negative movement in earnings estimates like that is why this stock is a Zacks Rank #5 (Strong Sell).
It should be noted that a majority of stocks in the Zacks universe are seeing positive earnings estimate revisions. That means that the stocks that are seeing small but negative earnings estimate revisions are falling to a Zacks Rank #5 (Strong Sell).
Additional content:
3 Stocks to Gain from Unabated Popularity of Social Media
Social media has become one of the most popular online engagement platforms across the world thanks to the outbreak of coronavirus last year. When people were compelled to stay at home and practice social distancing, social media allowed them to stay in touch with each other virtually.
Social media has emerged as an entertainment hub as well. As people searched for at-home forms of entertainment with movie theatres and restaurants being shut, several celebrities and artists decided to engage with fans by live streaming on social media platforms. These platforms have introduced short videos or images, which disappear after a set period of time. This form of content has become widely popular among users, owing to its short duration.
Other factors like the rising availability of the Internet and smartphones across the world have also boosted social media adoption. A report by Hootsuite published on Jul 22 stated that in July 2021, social media users increased more than 13% year over year, with the rise of more than half a billion users in 12 months. The report further stated that as of July, there were 4.48 billion social media users worldwide, equivalent to about 57% of the world's population.
It is no surprise that social media has also become one of the most popular platforms for digital advertising — a major source of revenues for the social media companies. Firms can reach out to relevant users as they can choose their audience.
Reaching out to the right audience means that users will be more interested in what the firm has to offer, thereby increasing the chances of generating sales. It's also interesting to note that owing to the popularity of short videos on social media, several firms are utilizing them to engage with users.
Firms also have analytics tools at their disposal to measure the success of their advertisement campaigns. Moreover, these conveniences are offered to firms at a comparatively lesser cost than the traditional advertising methods.
Reflective of the myriad conveniences that both users and firms are enjoying on social media, it is no surprise that the market is expected to grow further. Per a report by the Business Research Company, the social media market is estimated to witness a CAGR of 8.2% in 2021 and 32% by 2025.
3 Social Media Stocks to Watch
Social media remains one of the most favored ways of connecting with people. Firms are also using social media for advertising their products and services to appropriate people, thereby boosting profitability. This seems then a prudent time to take a look at social media names that should continue to thrive going forward. We have selected three such stocks that carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Facebook is one of the most popular social media platforms and the company is benefiting from increased mobile ad revenues. In second-quarter 2021, Facebook's number of monthly active users increased 7.2% year over year. On Jun 22, Facebook announced that it is expanding its Shops feature to WhatsApp and Facebook Marketplace.
Shares of Facebook have risen 31.2% year to date and it currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased nearly 7% over the past 60 days. The company's expected earnings growth rate for the current year is 39.7%.
Twitter offers a platform that allows users to consume, create, distribute and discover content. In the second quarter of 2021, the company's advertising revenues grew 87% year over year. The company is also focusing on livestreaming and on Jan 25, a multi-year deal between NBCUniversal and Twitter was announced with NBCUniversal bringing live content like Golden Globes, and others to Twitter.
Shares of this Zacks Rank #3 company have risen 16.1% year to date. The Zacks Consensus Estimate for its current-year earnings increased 17.3% over the past 60 days. The company's expected earnings growth rate for the current year is more than 100%.
Snap offers Snapchat, a camera application with functionalities, such as Camera, Communication, Snap Map, Stories, and Spotlight that enable people to communicate through short videos and images. On Jun 24, Universal Music Group and Snap announced that they have signed a multifaceted global agreement, allowing Snapchat users to incorporate Universal's "catalog of recorded music and content into creative tools."
Shares of Snap have risen 43.4% year to date. The Zacks Consensus Estimate for its current-year earnings increased 47.8% over the past 60 days. The Zacks Rank #3 company's expected earnings growth rate for the current year is more than 100%.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.