For Immediate Release
Chicago, IL – December 17, 2018 – Zacks Equity Research Cloudera (NYSE:CLDR) as the Bull of the Day, China Petrol (NYSE:SNP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on The Meet Group (NASDAQ:MEET) , Ribbon Communications (NASDAQ:RBBN) and AudioEye, Inc. (NASDAQ:AEYE) .
Here is a synopsis of all four stocks:
With the stock market coming under pressure recently, it’s tough to find good stocks to look at. Regardless of what’s trending, there is one theme that remains throughout all market conditions. That theme is earnings. Stocks which make the most money are likely to reward investors with the greatest profits. One such stock is today’s Bull of the Day.
That Bull of the Day is Zacks Rank #1 (Strong Buy) Cloudera.Cloudera is in an industry which ranks in the Top 9% of our Zacks Industry Rank. Cloudera, Inc. provides platform for machine learning and analytics in the United States, Europe, and Asia. The company operates through two segments, Subscription and Services. Its platform delivers an integrated suite of capabilities for data management, machine learning, and analytics to customers for transforming their businesses.
The reason for the favorable Zacks Rank lies in the series of recent earnings estimate revisions to the upside. Over the course of the last 30 days, four analysts have increased their estimates for the currently quarter while six have done so for the current year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current quarter from a 14-cent loss to a 12-cent loss while the current year number has jumped from a 51-cent loss to a 41-cent loss.
The bullish attitude has helped underpin a move in the stock price off the lows under $11 to over $12.30 where the stock closed on Friday. Overhead resistance remains at the swing high just over $13 as well as the early November peak at $15.00.
If you were looking for the worst place to be in the market right now, you’d probably pick the intersection of the worst two parts of the market. Arguably, those parts would be anything related to China, and anything related to the oil business. Today’s Bear of the Day perfectly sits at the intersection of these two industries.
Today’s Bear of the Day is Zacks Rank #5 (Strong Sell) China Petrol. China Petroleum & Chemical Corporation, an energy and chemical company, engages in the oil and gas, and chemical operations and businesses in the People's Republic of China. It operates through five segments: Exploration and Production, Refining, Marketing and Distribution, Chemicals, and Corporate and Others. The company explores and develops oil fields; produces crude oil and natural gas; processes and purifies crude oil; and manufactures and sells petroleum products. It also owns and operates oil depots and service stations; and distributes and sells refined petroleum products, including gasoline and diesel through wholesale and retail sales networks.
The reason for the unfavorable Zacks Rank lies in the series of negative earnings estimate revisions lately. Over the course of the last few weeks, estimates for the current year and next year have come tumbling down. Our current year Zacks Consensus Estimate has gone from $9.87 to $9.68 while next year’s number has come from $10.39 to $9.59. A huge negative move which has adversely affected the stock price.
This industry is currently in the Bottom 9% of our Zacks Industry Rank.
3 Tech Stocks Under $10 to Buy Now
Here at Zacks, we don’t generally classify stocks as “cheap” or “expensive,” https://www.propublica.org/article/trump-inc-podcast-trumps-inauguration-paid-trumps-company-with-ivanka-in-the-middle and rather than looking at the stock’s face value, we have a system that puts an emphasis on earnings estimate revisions to find stocks that will hopefully be winners for investors.
That being said, low-priced stocks can be attractive to smaller investors that can’t necessarily afford large stakes in companies with higher priced stocks.
When looking at these low-priced stocks, we can look at the same trends in growth, value, and momentum and apply the Zacks Rank to properly analyze the potential that these companies have. We are also keenly aware of the latest sector trends and make sure to cover all of the hottest industries.
Today we’ve highlighted three stocks that fall into the broad “technology” sector. Each of these three stocks is currently trading for less than $10 per share and holds a Zacks Rank #2 (Buy) or better. Take a look at the strong estimate revision activity and other factors that make these tech companies stick out right now:
1. The Meet Group
Prior Close: $3.83
The Meet Group is a social media company offering several different social entertainment apps, including MeetMe, Skout and Lovoo. These apps are primarily focused on streaming video, mobile chat, gifting, and photo sharing. MEET has put together an impressive year in terms of earnings beats, and shares were generating strong momentum until market-wide volatility took the air out of momentum stocks.
That said, MEET now looks relatively cheap at its current level. The firm is profitable and trading at just 11.3x forward earnings. It also has a P/S of 1.7, which marks a steep discount to the industry’s average of 4.1. We often prefer the P/S ratio as a metric of value for smaller tech firms, so it is interesting to see that investors are undervaluing MEET’s revenue stream right now.
2. Ribbon Communications
Prior Close: $5.47
Created last year through a merger of GENBAND and Sonus Networks, Ribbon Communications makes software and security solutions for cable providers and enterprises. The company has worked with some impressive partners, including Verizon (NYSE:VZ) and Microsoft (NASDAQ:MSFT). Shares currently sport a Zacks Rank #1 (Strong Buy).
The merger means this year is one of revenue growth, but looking to 2019, earnings are expected to improve to the tune of 16% from 2018's expected totals. Plus, the stock trades with a PEG of just 0.8, so investors are getting a great price for that growth potential. Other solid valuation metrics, including a P/E of 9.9 and a P/S of 1.1, have earned the stock a grade of “B” in our Value category.
3. AudioEye, Inc.
Prior Close: $7.10
AudioEye is a cloud-based digital accessibility company. In short, it works with other firms that are looking to make their own websites and online platforms easier to use for those in need. For instance, AudioEye can help make a website controllable through voice commands, so that people who might not be able to use a keyboard and mouse can have the complete experience of that web-page.
AudioEye issued a reverse stock split and began trading on a Nasdaq exchange earlier this year, so investors are still getting used to the new format. The stock now has a Zacks Rank #2 (Buy) amid exciting times of growth for the company. The business is heating up, with revenue growth expected to hit 114% this year and another 67% in 2019.EPS figures are projected to improve 57% and 26% in those periods.
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MeetMe, Inc. (MEET): Free Stock Analysis Report
China Petroleum & Chemical Corporation (SNP): Free Stock Analysis Report
Audioeye, Inc. (AEYE): Free Stock Analysis Report
Sonus Networks, Inc. (RBBN): Free Stock Analysis Report
Cloudera, Inc. (CLDR): Free Stock Analysis Report
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