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Brian's Big Idea On Margins

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Brian Bolan is the aggressive growth stock strategist at Zacks Investment Research and he has another big idea for us. This week he takes a detailed look at two stocks, one that has just reported and one that is scheduled to report in a couple of days.

Palantir Technologies (PLTR - Free Report) is a Zacks rank #3 (Hold) and just reported earnings last night. Revenue was slightly better than expected and EPS was in line but at the time of filming the stock was up more than 25%.

Brian reviews how the print which may not have looked good on the surface, was actually foreshadowing a big change in the stock. The margin profile for PLTR has significantly increased and it is expected that analysts will model that same increase going forward. This should cause the stock to move up in Zacks Rank from a #3 (Hold) to a #2 (Buy) or even a #1 (Strong Buy).

In the video Brian explains why the stock is a Zacks Rank #3 (HOLD) as earnings estimates haven't changed ahead of the earnings print. That will change however as analyst reports trickle in and the rank reviews the new estimates.

Pinterest (PINS - Free Report) is a Zacks Rank #1 (Strong Buy) and his reporting after the close on February 8th. Brian reviews how this large cap stock has scene acquisition talk coming from Amazon.

Pinterest (PINS - Free Report) has a good history of beating the number, topping the Zacks consensus estimate in each of the last four quarters. Estimates for this quarter and next quarter have held still over the last 60 days which happens to be the window of opportunity to influence the Zacks rank.

Finally, Brian looks at the Counterstrike service run by Jeremy Mullen. Brian notes that Jeremy is a professional trader and as such looks at a lot of data that normal investors don't spend a lot of time on. Whether it's dark pool trades, the VIX or zero day to expiration options, Jeremy is in tune with the here and now of the trading world.

Counterstrike Looks to leverage the Zacks rank and Jeremy’s expertise in the trading field to find the best stocks for the short and long term.


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