Chicago, IL – December 24, 2024 – 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: AppLovin Corp. APP, Climb Global Solutions, Inc. CLMB, Parsons Corp. PSN and Qifu Technology, Inc. QFIN.
Here are highlights from Monday’s Analyst Blog:
These 4 Business Services Stocks Should Not Stop Rewarding Investors
Price appreciation results in capital gain, which is the prime reward that one can anticipate from investing in stocks. However, this wish may remain unfulfilled for months, even for years, if you are stuck in non-performing stock(s) or market.
Recently, bourses have been affected by inflationary pressure, the Russia-Ukraine war and labor market issues. While this served as an opportunity to grab beaten-down stocks at a lower price, buying stocks that have performed well amid the market volatility is not a bad idea if they are well-positioned to keep performing well.
Our picks for you include AppLovin Corp., Climb Global Solutions, Inc., Parsons Corp. and Qifu Technology, Inc.. They have performed well in the past year and their fundamentals indicate the potential to sustain the momentum in the near term. These stocks flaunt a Zacks Rank #1 (Strong Buy) at present. Our research shows that stocks with a Zacks Rank #1 or 2 (Buy) offer attractive investment opportunities.
You can see the complete list of today's Zacks #1 Rank stocks here.
Let us find out the factors that make these stocks attractive picks.
AppLovin: Shares of this marketing and monetization platform have skyrocketed 727.4% in the past year.
APP's AXON 2.0, which is an AI model, drove its top line in the third quarter of 2024. Despite the slow growth rate in the in-game advertising segment, the company is positioned well to progress on the back of technological advancements.
AppLovin has been developing its e-commerce program since early 2024. The advertisers who were part of the pilot program observed a nearly 100% surge in traffic, outpacing the media channels. The company is inclined toward forming direct partnerships with a select group of advertisers to improve the capabilities of the e-commerce platform.
The Zacks Consensus Estimate for APP's 2024 earnings is pegged at $4.1, suggesting a more than 100% year-over-year growth. Six estimates for 2024 have moved north in the past 60 days versus no southward revision, reflecting analysts' confidence in the company.
The Zacks Consensus Estimate for 2024 earnings has risen 17.3% in the past 60 days. APP has a long-term earnings growth expectation of 20%.
Climb Global Solutions: Shares of this distribution and solutions provider have soared 114.4% in the past year.
Growth in CLMB's adjusted gross billings in the third quarter of 2024 can be attributed to organic growth from new and existing vendors, and contributions from DSS and DataSolutions' buyouts. An increase in organic growth from new and existing vendors in North America and Europe drove its gross profit.
CLMB operated through a robust pipeline of emerging vendors in the third quarter of 2024. It identified and partnered with innovative technologies in the market that gel with its vendor structure, mitigating IT challenges. The company's partnership with A-LIGN ensures its channel partners have the resources to move from audit to strategic compliance effectively.
The Zacks Consensus Estimate for CLMB's 2024 earnings is pegged at $4.1, implying 52.2% year-over-year growth. One estimate for 2024 has moved north in the past 60 days versus no southward revision.
The Zacks Consensus Estimate for 2024 earnings has risen 26.2% in the past 60 days. CLMB has a long-term earnings growth expectation of 16%.
Parsons: Shares of this integrated solution and services provider in the defense, intelligence and critical infrastructure markets gained 22% in the year-to-date period.
Strength in PSN's portfolio led to top-line growth in the third quarter of 2024. The company leveraged its strong balance sheet position to invest in software and integrated solutions, and conduct buyouts that provide defense capabilities that tackle the threats, strengthen PSN's engineering expertise and expand in high-growth infrastructure markets.
The acquisition of BlackSignal Technology expanded Parsons' customer base across the Department of Defense and Intelligence community, strengthened its positioning within the offensive cyber operations and electronic warfare, and added capabilities in the counter space radio frequency domain.
The Zacks Consensus Estimate for PSN's 2024 earnings is pegged at $3.4, hinting at 40.7% year-over-year growth. Five estimates for 2024 have moved north in the past 60 days versus no southward revision.
The Zacks Consensus Estimate for 2023 earnings has increased 6.9% in the past 60 days. PSN has a long-term earnings growth expectation of 18.6%.
Qifu Technology: Shares of this credit-tech platform provider have surged 168.1% in the year-to-date period.
QFIN's risk management strategies delivered promising results in the third quarter of 2024 and the preceding two quarters. Over the past three quarters, its D1 delinquency rate fell and the 30-day collection rate increased.
Qifu Technology benefited from the decline in the reverse repurchase rate announced by the People's Bank of China and reaped the benefits of a reduction in the Required Reserve Ratio. Such economic stimulus lowers the cost of lending, causing an influx of borrowers and increasing the demand for QFIN's services.
The Zacks Consensus Estimate for QFIN 2024 earnings is pegged at $5.7, indicating 55.2% year-over-year growth. Two estimates for 2024 have moved north in the past 60 days versus one southward revision.
The Zacks Consensus Estimate for 2024 earnings has risen 12.4% in the past 60 days. QFIN has a long-term earnings growth expectation of 20.9%.
Qifu Technology, Inc. price | Qifu Technology, Inc. Quote
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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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