Security Business To Drive Cynergistek (CTEK) In Q4 Earnings

Cynergistek, Inc. (NYSE:CTEK) is slated to release fourth-quarter 2018 results on Mar 27, after the bell. The company posted a positive earnings surprise of 64.3% in the last reported quarter.

Q4 Expectations

Cynergistek is expected to witness consistent strength in security related services. An increasing number of clients are adding multiple services like professional services, incident response and biomedical device security assessments to their cap program. A broad portfolio of healthcare differentiated security offerings is helping the company to increase market penetration.

Cynergistek is seeing high demand for professional service offerings, mainly in strategic projects. Also, its core managed service offerings are growing strongly.

As a result, Cynergistek’s revenues in the to-be-reported quarter are expected to be driven by strength in security-related managed services and security-related consulting and professional services.

The stock has rallied 27.7% in the past six months, against the 4.5% decline of the industry it belongs to.

What Our Model Says?

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Cynergistek has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat estimates.

IHS Markit (NASDAQ:INFO) has an Earnings ESP of +0.53% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Mastercard (NYSE:MA) has an Earnings ESP of +0.02% and a Zacks Rank #3.

Avis Budget (NASDAQ:CAR) has an Earnings ESP of +19.61% and a Zacks Rank #3.

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>