For Immediate Release
Chicago, IL – May 01, 2017 – 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 Advanced Micro Devices (NASDAQ: AMD – Free Report ), Advanced Energy Industries Inc. (NASDAQ: AEIS – Free Report ) and Integrated Device Technology Inc. (NASDAQ: IDTI – Free Report ).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .
Here are highlights from Friday’s Analyst Blog:
Semiconductors Stocks Reporting Q1 Earnings on May 1
The first-quarter earnings season has picked up pace, with results from 181 S&P 500 members or 40% of the index’s total market capitalization already out (as of April 26).
As per the latest Earnings Outlook , total earnings of these companies are up 10% on a year-over-year basis (75.7% of the companies beat EPS estimates) while total revenue is up 4.3% on a year-over-year basis (64.1% of the companies beat top-line estimates).
Notably, earnings and revenue growth numbers are significantly better than investor expectations. In fact, growth is on track to reach its highest level in almost three years. We believe that continuation of these trends through the rest of this earnings season will serve as a reassuring development for the market.
Overall first-quarter earnings for S&P 500 companies are anticipated to be up 9.7% from the year-ago quarter on revenues that are estimated to increase 5.9%. This would be better than the +7.4% growth in fourth-quarter earnings on +4.8% higher revenues. Finance, Technology, Industrial Products, and Basic Materials are expected to post double-digit earnings growth.
We note that almost 25.8% of the total market capitalization in the technology sector has reported till now. Total earnings are up 13.9% on a year-over-year basis (76.5% of the companies beat EPS estimates) while total revenue is down 0.1% on a year-over-year basis (70.6% of the companies beat top-line estimates).
Earnings for the Technology sector are anticipated to be up 11.8% on the back of 6.1% higher revenues, driven by strong growth from the semiconductor industry.
The industry is anticipated to benefit from rapidly growing cloud computing as well as Internet of Things (IoT) markets, which are driving growth for chip components to power applications particularly automotive, medical/healthcare and smart-connected devices.
Here we take a look at three semiconductor companies that are set to report their quarterly earnings on May 1:
Advanced Micro Devices (NASDAQ:AMD – Free Report ) is unlikely to beat first-quarter 2017 expectations as it has an unfavorable combination of a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%.You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter .
This is because, as per our proven model, a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 to beat earnings. You can see the complete list of today’s Zacks #1 Rank stocks here .
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
However, we note that AMD’s results compared favorably with the Zacks Consensus Estimate in the trailing four quarters, resulting in an average positive surprise of 35.76%.
We believe that AMD’s improving position in key markets – like virtual reality (VR) and augmented reality (AR), gaming and parallel processing – driven by the launch of Radeon and Ryzen chips is a key catalyst. (Read More: What's in Store for Advanced Micro in Q1 Earnings? )
AMD has also outperformed the Zacks Electronics Semiconductors industry on a year-to-date basis. While the stock gained 20.1%, the industry returned 17.3%.
Similarly, Advanced Energy Industries Inc. (NASDAQ: AEIS – Free Report ) looks unlikely to beat first-quarter fiscal 2017 estimates as it has an unfavorable combination of a Zacks Rank #3 and an Earnings ESP of 0.00%.
Notably, Advanced Energy has beaten the Zacks Consensus Estimate in all of the preceding four quarters with an average positive surprise of 17.10%. Moreover, the company has outperformed the Zacks Semiconductor Equipment - Wafer Fabrication industry on a year-to-date basis. While the stock has gained 37%, the industry posted an increase of 25.2%.
Integrated Device Technology Inc. (NASDAQ:IDTI – Free Report ) is unlikely to beat fourth-quarter 2017 estimates as it has an unfavorable combination of an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). Notably, results have beaten the Zacks Consensus Estimate in all the preceding four quarters. It has an average four-quarter positive surprise of 8.27%.
Integrated Device products continue to gain traction in the computing, communications and automotive markets. However, increasing competition is a significant headwind that will weigh on share price in 2017.
We note that shares have gained 4.6% on a year-to-date basis, worse than the Zacks Electronic Semiconductors industry’s rise of 18.2%.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock 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.
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 >>.
Get the full Report on AMD - FREE
Get the full Report on AEIS - FREE
Get the full Report on IDTI - FREE
Follow us on Twitter: https://twitter.com/zacksresearch
Join us on Facebook: https://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
support@zacks.com
https://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 https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report
Advanced Energy Industries, Inc. (AEIS): Free Stock Analysis Report
Integrated Device Technology, Inc. (IDTI): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
