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Chicago, IL - April 24, 2017 - Zacks Equity Research highlights Boise Cascade (NYSE: BCC - Free Report ) as the Bull of the Day, TD Ameritrade (NASDAQ: AMTD - Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Square (NYSE: SQ - Free Report ), Visa (NYSE: V - Free Report ) and Apple (NASDAQ: AAPL - Free Report ).
Here is a synopsis of all five stocks:
With a strong housing market and the prospect for more growth in the future, many investors have taken a closer look at the homebuilders. However, the building products area could be a hidden source of profits in the months ahead, as they too could benefit from solid housing trends, though they have flown under the radar for the most part as of late.
A great example of this is in the building products-wood industry , which currently is in the top 3% overall for the Zacks Industry Rank. This could be an area for investors to watch in the future, and especially if it keeps up its strong earnings estimate revision track. In fact, of the 10 companies in this industry, only one has a rank of 'sell' or worse.
Where to Watch in This Market
But if you are looking for the cream of the crop in this group, you might not have to look any further than Boise Cascade (NYSE: BCC - Free Report ). This Idaho-based manufacturer and distributor of lumber and building materials could be a big beneficiary of a continued housing surge thanks to its in-demand products like plywood, particleboard and other word products and supplies.
In particular, investors should be watching this stock thanks to some of its recent earnings estimate revisions. The stock actually has an Earnings ESP of over 44% for the current quarter and an ESP of nearly 14% in the current year. These figures mean that the most recent estimates-arguably those with the most up-to-date information-are pricing in significantly better prospects for BCC in both the near and longer term time frames.
But don't worry about these elevated expectations, as BCC has an amazing history in earnings season. In particular, the company has an average surprise of over 500% in the past four quarters, including a surprise profit last quarter when most were expecting a loss from the company.
While hopes were high for the brokerage segment thanks to rising rates, some companies have disappointed in this market to kick off earnings season. A great example of this is TD Ameritrade (NASDAQ: AMTD - Free Report ) which just reported and missed earnings estimates.
The company reported EPS of 40 cents per share compared to estimates of 41 cents per share, marking the second miss in three quarters for the online broker age giant. But while this sluggish report was largely overlooked by investors, there could be some issues on the horizon for AMTD, at least if we look to recent earnings estimates.
AMTD Estimates
In just the past week, we have seen three estimates go lower for the current quarter earnings on AMTD stock, while we have seen four estimates go lower for the current year. And for both of these key time periods it really continues a longer trend of decline, as both consensus estimates are now lower by over 5.5% compared to where they were sixty days ago.
Part of this is due to the lower prospects of higher interest rates, while another aspect has to be the reduced income from trading fees. Investors saw the opening salvos of a price war take place in the first quarter of this year, and this could definitely hit the bottom line of TD Ameritrade in the near term, and especially if interest rates don't cooperate.
AMTD Fundamentals
But beyond earnings, AMTD also struggles from a fundamental look too. The stock receives 'F' Grades for Value and Growth, and is the bottom of the barrel for both of these important metrics.
As for value, the company receives its weak grade thanks to a P/CF ratio that is nearly 10 times higher than the industry average, as well as a P/B ratio that is more than double the industry average. And from a growth look, cash flow growth is less than half of the industry average while the projected EPS growth comes in at just 5.15%. Add in an 'F' Grade on the momentum front too, and it is hard to like this security from a fundamental perspective.
Additional content:
3 Mobile Payment Stocks to Buy Now
By now, we've probably all used some sort of mobile payment technology. Whether it's using our smartphone to pay for coffee at Starbucks or transferring money through an app, this kind of monetary technology using our phone has fully integrated our lives.
While tech giants like Google and PayPal - PayPal owns the incredibly popular app Venmo, which lets you easily send or request money - certainly dominate the industry here in the U.S., Chinese juggernauts Alibaba and Tencent are investing hundreds of millions of dollars into the space to help mobile payment technology grow and expand internationally, particularly in India.
The mobile payments industry is quickly changing, and investors have taken notice. With this in mind, check out these three mobile payment technology stocks that show promise in this expanding industry.
Square (NYSE: SQ - Free Report )
Helmed by Twitter chief executive Jack Dorsey, Square provides payments and point-of-sale devices including hardware and software. The payments company began with its flagship white credit card reader, but has since expanded into chip cards and NFC payments as well as its Cash app that lets people pay each other back instantly.
Square is a #1 (Strong Buy) on the Zacks Rank, with a VGM score of 'C.' Its industry, Internet-Software , rests in the top 32% of all industries ranked on the Zacks Industry Rank. Square's earnings growth for 2017 looks very promising. For the current quarter, the company expects year-over-year earnings growth of almost 42%, with two positive revisions in the last 60 days compared to none lower.
For the current year, Square anticipates growth of 24.5%, with 5 positive estimate revisions compared to one lower in the same time frame. SQ has an average earnings surprise of over 23%, and beaten estimates for the past 3 consecutive quarters.
Visa (NYSE: V - Free Report )
Visa operates the world's largest retail electronic payments network, and is one of the most recognized global financial services brands. The company serves banks, merchants, consumers, businesses, and government entities, and helps facilitate global commerce through the transfer of value and information. Visa has been rapidly boosting its mobile payment offerings, and it's easier than ever to add your Visa card to your payment-enabled mobile phone or device.
Visa is a #2 (Buy) on the Zacks Rank, with a VGM score of 'C.' Its Industry, Financial Transaction Services , sits in the top 31% of all industries ranked on the Zacks Industry Rank. Visa just reported solid second-quarter fiscal 2017 results, with beats on both the top and bottom lines. Higher revenues were driven by the acquisition of Visa Europe and consistent growth in cross-border volume and processed transactions.
Its earnings growth estimates look pretty promising, too. For the current quarter, Visa expects year-over-year earnings growth of 17.15%, with one positive revision in the last seven days compared to none lower. For the current year, the company expects year-over-year earnings growth of 18.81%, with two positive revisions in the last seven days compared to none lower in the same time frame. Visa has beaten expectations in the past four consecutive quarters, and has an average earnings surprise of 7.24%.
Apple (NASDAQ: AAPL - Free Report )
Best known for its flagship iPhone, Apple is one of the most recognizable brands in the world. It designs, manufactures, and markets mobile communications and media devices, personal computers, tablets, and portable digital music players, in addition to a portfolio of consumer and professional software applications.
Apple's Apple Pay is the company's popular contactless payment system for mobile phones, and in its last quarterly earnings report, CEO Tim Cook announced that transaction volume grew 500% year-over-year, and the service is now in a total of 13 markets following recent launches in countries abroad. Apple Pay users also tripled.
Apple is a #2 (Buy) on the Zacks Rank, with a VGM score of 'A.' It industry, Computer-Mini Computers , rests in the top 9% of all industries ranked on the Zacks Industry Rank. Looking at Apple's growth estimates, 2017 looks to be a good year for the iPhone maker. The company expects modest year-over-year growth of 5.86% for the current quarter. For the current year, Apple anticipates year-over-year earnings growth of 7.66%, with 3 positive estimate revisions in the last 30 days. Apple has beaten earnings expectations in the past three consecutive quarters.
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Boise Cascade, L.L.C. (BCC): Free Stock Analysis Report
TD Ameritrade Holding Corporation (AMTD): Free Stock Analysis Report
Square, Inc. (SQ): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
Apple Inc. (AAPL): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
