Overstock.com Inc. (NASDAQ:OSTK) is slated to report second-quarter 2016 results on Aug 4. It is an online retailer that sells brand-name merchandise at deep discounts. Its offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Overstock’s business has been hit by changes in Google (NASDAQ:GOOGL) search algorithms and rising competition in the e-commerce sector. In response, the company has intensified efforts on expanding its product reach, building its customer base and strengthening its international foothold.
The company has partnered with Tmall in China, 11Street in Korea, Mercado LibreIguama in Latin America, Trade Me in New Zealand and Australia and Rakuten in the UK. Management has indicated more partnerships in the near future. It has launched a trusted partner marketplace as a part of its global expansion efforts.
Management has also confirmed Overstock’s continued focus on improvement of customer experience and customer attraction and retention efforts. For this, the company is trying to bring in absolute customization and personalization of its marketing message and develop customer friendly mobile platforms and applications.
Overstock has been a Bitcoin supporter for more than two years and has successfully leveraged the blockchain technology. The company is trying to establish relationships with major financial and capital market institutions to achieve the expected level of synergy between blockchain and cryptocurrency.
The company has high hopes from its Club O loyalty program that includes Club O Gold and Club O Silver. The company is innovating with this program for years adding value to it continuously.
Overstock has been engaged in legal battles with several brokerage firms over issues of stock price manipulation, most recently with Merrill Lynch. Merrill Lynch eventually settled by paying $20 million to Overstock.com and its co-plaintiffs.
We expect its customer friendly initiatives, product and geographical expansion efforts and continuous efforts to reduce illegal stock manipulation and reform capital markets to act as major positives for Overstock in the to-be-reported quarter.
Stocks That Warrant a Look
Here are some companies that can be considered as our model shows that they have the right combination of a positive Earnings ESP and a favorable Zacks Rank to post an earnings beat this quarter:
Avista Corp. (NYSE:AVA) with an Earnings ESP of +2.33% and Zacks Rank #2.
Alibaba Group Holding Limited (NYSE:BABA) with an Earnings ESP of +28.95% and Zacks Rank #3.
Paycom Software, Inc. (NYSE:PAYC) with an Earnings ESP of +7.69% and a Zacks Rank #3.
AVISTA CORP (AVA): Free Stock Analysis Report
PAYCOM SOFTWARE (PAYC): Free Stock Analysis Report
ALIBABA GROUP (BABA): Free Stock Analysis Report
Original post
Zacks Investment Research