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Paycom Software, Autoweb, FedEx and Amazon highlighted as Zacks Bull and Bear of the Day
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For Immediate Release
Chicago, IL – March 16, 2018 – Zacks Equity Research highlights Paycom Software (PAYC - Free Report) as the Bull of the Day, Autoweb as the Bear of the Day. In addition, Zacks Equity Research provides analysis on FedEx (FDX - Free Report) and Amazon (AMZN - Free Report) .
If you’re looking for ideas in this market, digging through tech stocks is never a bad idea. Tech offers up growth and excitement you don’t see in more traditional industries. Today’s Bull of the Day is a stock that’s in the cloud computer, software-as-a-service business. I’m talking about Zacks Rank #1 (Strong Buy) Paycom Software.
Paycom Software, Inc. provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking.
The reason for the favorable Zacks Rank is the recent earnings estimate revisions to the upside. Over the last sixty days, eleven analysts have increased their earnings estimates for the current year while four have done so for next year. The bullish revisions have pushed up our Zacks Consensus Estimate from $1.52 to $2.46. Next year’s number has shot up from $1.89 to $3.06. That puts the current year’s EPS growth estimate at 89.23% and next year’s at 24.5%.
Paycom’s run has been going on for quite some time. With earnings growth as strong as it has been over the last few years, perhaps this run is justified. The stock last pulled back to support at the 50-day moving average in early February. Support really popped in with the stock under $82. Since then, the stock has shot up to $112. Yesterday the stock closed at $109.82.
A name change can be good, if you’re changing direction, looking for a rebirth of some kind. But if you’re just changing names to try and shake an image and don’t make the changes to support it, then a rose by any other name…well you know how it goes. Now that I’ve managed to squeeze a Shakespearean reference in here, lets talk about this star-crossed Zacks Rank #5 (Strong Sell). The company formerly known as Autobytel, Autoweb.
AutoWeb, Inc. operates as an automotive marketing services company in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, as well as finance leads program, which provides vehicle financing and other services from dealers or financial institutions. It owns and operates an automotive Website, Autobytel.com that offers consumers the information and tools to aid them with their automotive purchase decisions; and an automotive search engine that enables manufactures and dealers to optimize advertising campaigns.
The reason for the harsh Zacks Rank is the recent string of bearish estimate revisions following the last earnings reports. For the current year, two analysts have cut their earnings estimates. The bearish moves have dropped our Zacks Consensus Estimate from 95 cents down to 25 cents. The current quarter number has come down from 17 cents to zero. That sort of contraction is not what you want to see when you’re investing for the long run.
Additional content:
Is FedEx Set to Beat Earnings Estimates?
FedEx has been in the headlines recently as Amazon spends money on warehouses, planes, and much more in an effort to conquer the shipping industry. Nevertheless, FedEx remains seemingly unfazed and looks poised to grow both its top and bottom lines.
While some causal onlookers might hear that FedEx is doomed, its investors haven’t left. In fact, shares of FedEx have climbed nearly 28% over the last year and hit a new all-time high in mid January. The company also has plans to bolster its business through investments in order to better compete going forward.
FedEx announced on Wednesday that it will invest more than $1 billion to modernize and expand its Tennessee hub in order to make it more efficient and reliable. This move comes after the shipping power made similar renovation plans earlier this year regarding its FedEx Express hub in Indianapolis.
These investments in the future likely won’t pay off for some time, but in the near term, the company is still expected to see its sales and earnings surge.
For the soon-to-be-reported quarter, FedEx is expected to see its sales jump by nearly 8% to hit $16.18 billion. The company is also projected to see its quarterly earnings hit $3.06 per share, which would mark 30.2% growth from the year-ago period. Still, investors need to consider a few more metrics to understand if FedEx is poised to beat this estimate.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
FedEx currently has an Earnings ESP of 2.2%, which means earnings estimates have been higher directly ahead of FDX’s Q3 results. When paired with the company’s current Zacks Rank #3 (Hold) standing, investors should consider the stock as one that seems ready to top estimates.
Investors should also note that FedEx topped its earnings estimate by 10.8% last quarter.
FedEx is set to report its fiscal third quarter 2018 earnings results after market close on Tuesday, March 20.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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 analyst 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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.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.
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Paycom Software, Autoweb, FedEx and Amazon highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 16, 2018 – Zacks Equity Research highlights Paycom Software (PAYC - Free Report) as the Bull of the Day, Autoweb as the Bear of the Day. In addition, Zacks Equity Research provides analysis on FedEx (FDX - Free Report) and Amazon (AMZN - Free Report) .
Here is a synopsis of all four stocks:
Bull of the Day:
If you’re looking for ideas in this market, digging through tech stocks is never a bad idea. Tech offers up growth and excitement you don’t see in more traditional industries. Today’s Bull of the Day is a stock that’s in the cloud computer, software-as-a-service business. I’m talking about Zacks Rank #1 (Strong Buy) Paycom Software.
Paycom Software, Inc. provides cloud-based human capital management (HCM) software service for small to mid-sized companies in the United States. It provides functionality and data analytics that businesses need to manage the employment life cycle from recruitment to retirement. The company's HCM solution offers a suite of applications in the areas of talent acquisition, including applicant tracking, candidate tracker, background checks, on-boarding, e-verify, and tax credit services; and time and labor management, such as time and attendance, scheduling/schedule exchange, time-off requests, labor allocation, labor management reports/push reporting, and geofencing/geotracking.
The reason for the favorable Zacks Rank is the recent earnings estimate revisions to the upside. Over the last sixty days, eleven analysts have increased their earnings estimates for the current year while four have done so for next year. The bullish revisions have pushed up our Zacks Consensus Estimate from $1.52 to $2.46. Next year’s number has shot up from $1.89 to $3.06. That puts the current year’s EPS growth estimate at 89.23% and next year’s at 24.5%.
Paycom’s run has been going on for quite some time. With earnings growth as strong as it has been over the last few years, perhaps this run is justified. The stock last pulled back to support at the 50-day moving average in early February. Support really popped in with the stock under $82. Since then, the stock has shot up to $112. Yesterday the stock closed at $109.82.
Bear of the Day:
A name change can be good, if you’re changing direction, looking for a rebirth of some kind. But if you’re just changing names to try and shake an image and don’t make the changes to support it, then a rose by any other name…well you know how it goes. Now that I’ve managed to squeeze a Shakespearean reference in here, lets talk about this star-crossed Zacks Rank #5 (Strong Sell). The company formerly known as Autobytel, Autoweb.
AutoWeb, Inc. operates as an automotive marketing services company in the United States. It assists automotive retail dealers and manufacturers to market and sell new and used vehicles to consumers through its programs. The company's products include new vehicle lead program, which allows consumers to submit requests for pricing and availability of specific makes and models; and used vehicle lead program, as well as finance leads program, which provides vehicle financing and other services from dealers or financial institutions. It owns and operates an automotive Website, Autobytel.com that offers consumers the information and tools to aid them with their automotive purchase decisions; and an automotive search engine that enables manufactures and dealers to optimize advertising campaigns.
The reason for the harsh Zacks Rank is the recent string of bearish estimate revisions following the last earnings reports. For the current year, two analysts have cut their earnings estimates. The bearish moves have dropped our Zacks Consensus Estimate from 95 cents down to 25 cents. The current quarter number has come down from 17 cents to zero. That sort of contraction is not what you want to see when you’re investing for the long run.
Additional content:
Is FedEx Set to Beat Earnings Estimates?
FedEx has been in the headlines recently as Amazon spends money on warehouses, planes, and much more in an effort to conquer the shipping industry. Nevertheless, FedEx remains seemingly unfazed and looks poised to grow both its top and bottom lines.
While some causal onlookers might hear that FedEx is doomed, its investors haven’t left. In fact, shares of FedEx have climbed nearly 28% over the last year and hit a new all-time high in mid January. The company also has plans to bolster its business through investments in order to better compete going forward.
FedEx announced on Wednesday that it will invest more than $1 billion to modernize and expand its Tennessee hub in order to make it more efficient and reliable. This move comes after the shipping power made similar renovation plans earlier this year regarding its FedEx Express hub in Indianapolis.
These investments in the future likely won’t pay off for some time, but in the near term, the company is still expected to see its sales and earnings surge.
For the soon-to-be-reported quarter, FedEx is expected to see its sales jump by nearly 8% to hit $16.18 billion. The company is also projected to see its quarterly earnings hit $3.06 per share, which would mark 30.2% growth from the year-ago period. Still, investors need to consider a few more metrics to understand if FedEx is poised to beat this estimate.
Luckily, Zacks Premium customers can utilize the Earnings ESP Screener in order to search for stocks that are expected to beat. Zacks Earnings ESP (Expected Surprise Prediction) looks to find earnings surprises by focusing on the most recent analyst estimates.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
FedEx currently has an Earnings ESP of 2.2%, which means earnings estimates have been higher directly ahead of FDX’s Q3 results. When paired with the company’s current Zacks Rank #3 (Hold) standing, investors should consider the stock as one that seems ready to top estimates.
Investors should also note that FedEx topped its earnings estimate by 10.8% last quarter.
FedEx is set to report its fiscal third quarter 2018 earnings results after market close on Tuesday, March 20.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>
Get today’s Zacks #1 Stock of the Day with your free subscription to Profit from the Pros newsletter:
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
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 analyst 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.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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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.
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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.