Earnings season is typically inundated with coverage of popular companies such as Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL), Google (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN). This season will likely feature headlines such as “Has Facebook Peaked?” or “Can Anything Stop Amazon?”.
With the upcoming earnings season expected to pick up on previous declines, investors will be looking for undercovered names expected to beat earnings. These are names that typically don’t garner the same media attention as today’s tech giant’s. They include: Zillow, Cirrus Logic, Etsy, 3D Systems and Applied Materials.
According to the Estimize data, these names have been on the move, signified by consistent year-over-year growth, heavy upward revisions, and a history of beating expectations. The combination of these factors have typically led to substantial out-performances and a pop in share prices.
Zillow Group Inc (NASDAQ:ZG) Information Technology – Internet Software and Services
Zillow (ZG) is coming off a better than expected fourth quarter that printed 900% bottom-line growth and 22% on the top. The broader housing recovery combined with the general success of web based platforms have springboarded the company out of mediocrity. Shares are currently up 36% year-to-date and nearly 26% in the past 12 months.
Early signs for the third quarter already appear promising. Analysts at Estimize are calling for earnings per share of 13 cents, 234% higher than the same period last year. That estimate has jumped a resounding 158% since Zillow’s most recent report in early August. Revenue for the period is anticipated to increase 25% to $226.50 million. Estimates and projected growth should continue to rise assuming nothing changes in the next few months.
Cirrus Logic Inc (NASDAQ:CRUS) Information Technology – Semiconductors
The semiconductor industry is going through a broader resurgence this year as these companies either get acquired or continue to deliver strong earnings. The SPDR S&P Semiconductor (NYSE:XSD) is up 19% this year thanks to this ongoing trend. One of the many standouts in the space has been Cirrus Logic (CRUS). Shares of this little known semiconductor are up a whopping 87% year to date which should only get higher as earnings continue to make improvements.
Last quarter the company topped expectations on both the top and bottom-line while growth moved in the right direction. Expectations for the upcoming quarter are sky high at the moment due to the early success of the iPhone 7. A majority of Cirrus’ revenue is generated from chips found in Apple’s latest smartphone. The Estimize consensus is currently looking for earnings per share of $1.08 on revenue of $401.47 million for the third quarter. Both revenue and earnings estimates have increased by over 20% in the past 3 months.
Etsy Inc (NASDAQ:ETSY) Information Technology – Internet Software and Services
While many online retailers have struggled to compete with Amazon, that hasn’t been the case for Etsy (ETSY). Etsy’s niche marketplace of handmade arts and crafts has found its footing in the rapidly evolving retail space. Etsy has delivered better than expected results for 3 consecutive quarters and year-to-date the stock is up 77%.
The company recently agreed to acquire AI startup, Blackbird Technologies, to bolster its search capabilities. Efforts to broaden exposure will help bring people to the site and drive sales moving forward. Like its peers on this list, early signs are pointing to a big beat in the upcoming quarter. The Estimize consensus is calling for 1 cent loss per share on $88.40 million in revenue. Compared to a year earlier that represents a 75% increase on the bottom-line and 28% on the top.
3D Systems Corporation (NYSE:DDD) Information Technology – Computers and Peripherals
While 3D printers no longer occupy the headlines, it doesn’t mean they’ve been completely forgotten. 3D Systems (DDD) is still thriving by selling printers to both commercial and recreational customers. Its portfolio of healthcare solutions are expected to drive longer-term growth. These include end-to-end simulation, training and planning and practicing surgical instruments and devices for personalized surgery. Precision surgical equipment is often very expensive which is why investors are so enthusiastic about these new affordable alternatives.
Additionally, DDD unveiled its newest systems, Figure 4, earlier this year, which is being promoted as faster and more efficient than previous models. Heightened competition from heavy hitters like HP and Stratasys will continue to be near-term threats to earnings and revenue. Regardless, this quarter is shaping up to be another win. Analysts at Estimize are calling for earnings per share of 11 cents on $168.76 million in revenue. Compared to a year earlier that represents an 850% increase on the bottom-line and 7% on the top. Historically shares jump over 4% between 1 day and 30 days following an earnings report.
Applied Materials Inc (NASDAQ:AMAT) Information Technology – Computers and Peripherals
Applied Materials (AMAT) is coming off one of its best quarterly reports in recent years. The third quarter featured a 13% increase on the top line and 52% on the bottom. As mentioned above, this comes on the back of a broader bounceback in the semiconductor industry. Applied Materials is up 62.5% year-to-date and over 94% in the past 12 months.
Analysts already believe that the company will cap off its fiscal 2016 on a historic note. The Estimize consensus is calling for earnings per share of 63 cents on $3.26 billion in revenue. That represents a 99% increase on the bottom line and 28% on the top compared to the same period last year.
How do you think these names will report?