On January 3, Zacks Investment Research upgraded Dun
& Bradstreet Corp ( DNB ) to
a Zacks #1 Rank (Strong Buy).
Why the Upgrade?
The company reported upbeat third quarter 2012 results wherein
both top and bottom lines beat the Zacks Consensus Estimate.
Moreover, D&B delivered positive earnings surprises in 3 of the
last 4 quarters with an average earnings beat of 4.9%. The
long-term expected earnings growth rate for this stock is
D&B's third quarter earnings per share of $1.76 was ahead of
the Zacks Consensus Estimate of $1.60 and increased 23.9% from the
year-ago quarter aided by lower costs and solid margin
The company also reiterated its fiscal 2012 guidance of an
earnings growth of 8% to 11%.
The Zacks Consensus Estimate of $6.97 for fiscal 2012 indicates
that the reported earnings are expected to be in the high end of
the guidance range. Moreover, the Zacks Consensus Estimate
represents a 9% year-over-year increase in fourth quarter earnings
to $2.41 a share.
Going forward, D&B's initiatives in the Data-as-a-Service
(DaaS) segment, which enables customers to use D&B's data
through their Customer Relationship Management platform, will be a
great positive. Partnerships with salesforce.com (
), Microsoft ( MSFT )
and Oracle ( ORCL )
in this segment are also expected drive growth for D&B. The
products that are expected to be in focus include the MaxCV data
platform and B2B trade portal. MaxCV is expected to accelerate
revenue growth and reduce expenses for customers by improving data
quality and timeliness, increasing the speed of product innovation
and significantly reducing technology costs.
Other Stocks to Consider
The following companies in the sector also have favorable Zacks
Ranks and are therefore worth considering.
1) Arbitron Inc. ( ARB )
carries a Zacks #2 Rank (Buy)
2) LifeLock, Inc. ( LOCK ) has
a Zacks #2 Rank (Buy)SALESFORCE.COM (CRM): Free Stock Analysis
ReportDUN &BRADST-NEW (DNB): Free Stock Analysis
ReportMICROSOFT CORP (MSFT): Free Stock Analysis
ReportORACLE CORP (ORCL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment