Allot Communications Ltd. (
When you think about the internet, networks, bandwidth and
mobile, Allot is one of the companies that probably not what comes
to mind first, but their products and services play an integral
part in how we are using all of them.
You also may have a distain for companies like ALLT because they
are the folks who have the technology track, meter and somewhat
enforce bandwidth consumption. As consumers are surfing the
web on their mobile devices, Allots' solutions monitor, route and
record details for providers like AT&T, Verizon and others to
manage traffic per application, per subscriber, per cell, per
service plan, and according to local network conditions.
As VOIP, streaming video and IM traffic grow, so does potential
business for Allot. "Deep packet inspection technology" or
Allots' "Dynamic Actionable Recognition Technology" (DART) allows
carriers to pinpoint what programs and services being used by
consumers are sucking up bandwidth. Carriers in turn, can
optimize networks and charge you for what you use. They say
it's better for all, but at the end of the day, consumers' usage is
being capped and carriers are making more money, I wouldn't say
The days of wireless, unlimited bandwidth usage are going away
(for the time being at least) and just about every American carrier
has now moved to pay per usage platforms as opposed to flat fee for
Financials & Recent Developments
Allot is a small-cap (663 million mar-cap) based in Israel. Because
the company is still small, its analyst coverage is limited to only
2. In its most recent report, the company reported 12 cents
per share in earnings compared to the Zacks Consensus estimate of
The Israeli internet company saw year over year sales growth of
almost 36% on $77.8 million in total 2011 sales and a Quarterly
sales increase of roughly 10%. They are currently trading at
45 times forward earnings.
Earnings have finally moved into positive territory for ALLT.
Expectations are for the company to earn 10 cents when they report
quarterly earnings on May 8th (est). Analyst targets have been
steady over the past month or so. Zacks Analysts also rate
the stock as a strong buy.
For those who are open to more speculative investments, ALLT may
be a company to watch.
Currently trading around $22.75 per share, ALLT has outpaced the
S&P 500 by 37.5% over the past year and outperformed the broad
market by over 20% in the past month alone.
Volume is on the light side, but the stock remains firmly above
its 50 and 200 day moving averages of $18.23 and $15.46
This Week's Momentum Zacks Rank Buy Stocks:
Harley-Davidson, Inc. (
Harley created a lifestyle and in my mind, they were the original
social network. Harley owners and other bikers shared a
common thread that transcended culture, social status, gender and
ethnicity. Over the past two decades, Harley has
expanded its appeal beyond the middle class biker circles that made
it famous. Yuppies and younger, hipper, trendier buyers have
stepped up and put a Harley in their garage. If you look at
the prices of their bikes and accessories, it's a wonder that the
middle class could ever afford one. Many of their showrooms
rival some of the most expensive automotive brands in the world in
their layout, décor and technology.
But even with a favorable cultural shift, the past couple years
have been a bit rough for the company. Just recently they
made cuts to their hourly workforce and shutdown one of their
plants in Wauwatosa WI. Earlier this month, after 50 years as
head of styling, Willie G. Davidson, who is also the grandson of
founder of William A Davidson, stepped down.
For a diehard Harley fan and owner like me, one has to wonder
what the effect will be on the Harley lineup with Willie G.
gone. I think that they will not only continue to produce
quality and consistency in their machines, but perhaps now will
begin to explore some unique designs that are still true Harleys at
Fads come and go, but Harley remains tried and true to its roots
in many ways. You may have a chopper, bobber or custom bike,
but for most of us who ride, especially long distances; there is
nothing like a Harley. I believe their international story is one
to watch as is the fact that the "chopper" fads are fading,
steering more customers to Harley's new, aggressive
READ FULL STORY
Cost Plus (
Cost Plus (aka World Market) operates 258 stores nationwide that
offer an eclectic mix of everything from exotic (but economical)
furnishings to cookware and foods from around the world.
Last time CPWM hit the Zacks Rank #1 buy list on January 24,
2011 it was a $12 dollar stock; fast forward less than two
months and the shares are up 50%, now trading close to $18 after
hitting a 5 year high of $18.66.
In January my focus was on World Market's unique positioning,
growth prospects and expansion. I also saw analysts moving their
estimates higher ahead of the earnings report which can be one of
the best indicators if a stock is going to maintain momentum.
All of these factors combined made CPWM a solid Zacks Rank Buy
candidate. The retailer delivered those anticipated bullish
results on March 22nd, beating Zacks Consensus Estimates and
sending shares higher. The question now is whether this
momentum can continue?
READ FULL STORY
Anheuser-Busch InBev (
After pounding a couple pints of your favorite beer, the stresses
of modern day society may seem just a little bit less severe.
Based on Anheuser-Busch InBev's most recent earnings report and
outlook, it seems that the world might be doing just that. It's
also the choice of much of the middle class and beer is, after all,
the original social network. (That's what Anheuser-Busch
InBev claims anyway).
According to the Beer Institute, (yes there is such a thing)
sales of the hoppy beverage rose more than 2% globally in
2011. Total sales for the year came in at $98 billion here in
the US. Americans are the global kings of beer
consumption compared to wine and hard liquor.
Nielsen research noted that the rise in sales revenue is coming
largely in part by the high-end beer business. The sale of imports,
crafts and above-premium beers sold "off-premises" was up nearly 3
It may be a good thing that "The King of Beers" joined forces
with Inbev in 2008 because much of the growth is coming from
"local" and "craft" specialty beers. Some of the major US
brands (like Bud Light, Coors and Miller) are actually losing
market share as consumers' tastes change. Budweiser however
has been gained some international love and so have shares of
READ FULL STORY
Cabela's, Inc. (
is on a roll. New store openings and a strong brand are pushing
shares of this Zacks #1 Rank (Strong Buy) into new territory.
Cabela's is a specialty retailer of hunting, fishing, camping
and outdoor merchandise. You may know it from its big log cabin
stores. It operates 33 stores in the United States and 2 in Canada.
The company also has a large mail order and Internet business.
Cabela's also issues Cabela's CLUB Visa credit card, which is
its primary customer loyalty program. It is operated through a
wholly-owned subsidiary, World's Foremost Bank.
READ FULL STORY
Jared A Levy is the Momentum Stock Strategist for
Zacks.com. He is also the Editor in charge of the market-beating
Zacks Whisper Trader Service.
ALLOT COMM LTD (
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