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Zacks.com featured highlights: Verisign, 58.com and RPC


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For Immediate Release

Chicago, IL - June 20, 2017 - Stocks in this week's article include  Verisign, Inc. (NASDAQ: VRSN - Free Report ), 58.com Inc (NYSE: WUBA - Free Report ) and RPC, Inc. (NYSE: RES - Free Report ).

Screen of the Week of Zacks Investment Research:

Looking for Accelerated Earnings Growth? 3 Solid Picks

Earnings are essentially revenues that the company generates after deducting the cost of production over a given period of time. Earnings growth enthralls almost everyone, right from the top brass to research analysts.

Better-than-expected earnings results mostly lead to an uptick in the share price. Studies, however, have shown that a majority of successful stocks had seen acceleration in earnings before a positive stock price movement. Hence, earnings acceleration works even better in lifting the stock price.

Spot the Outperformers

In case of earnings growth, you pay for something that is already reflected in the stock price. But, earnings acceleration helps spot stocks that haven't caught the attention of investors yet, which once secured will invariably lead to a rally in the share price. This is because earnings acceleration considers both direction and magnitude of growth rates.

Earnings acceleration is basically the increase in a company's quarter-over-quarter earnings growth within a stipulated frame of time. In other words, it is the incremental growth in earnings of a company.

Increasing percentage of earnings growth means that the company is fundamentally sound and has been on the right track for a considerable period of time. Sideways percentage of earnings growth indicates a period of consolidation or slowdown, while a decelerating percentage of earnings growth may at times drag prices down.

This is the reason why earnings acceleration should be viewed as a key metric for share price outperformance.

Screening Parameters :

Let's pick stocks for which the last two quarter-over-quarter percentage EPS growth rates have been more than the growth rates of the previous periods. The projected quarter-over-quarter percentage EPS growth rates are also expected to be higher than the previous periods' growth rates.

EPS % Projected Growth (Q1)/(Q0) greater than EPS % Growth (Q0)/(Q-1) : The projected growth rate for the current quarter (Q1) over the completed quarter (Q0) has to be greater than the growth rate from the completed quarter (Q0) over one quarter ago (Q-1).

EPS % Growth (Q0)/(Q-1) greater than EPS % Growth (Q-1)/(Q-2) : The growth rate for the completed quarter (Q0) over one quarter ago (Q-1) has to be greater than the growth rate from one quarter ago (Q-1) over two quarters ago (Q-2).

EPS % Growth (Q-1)/(Q-2) greater than EPS % Growth (Q-2)/(Q-3) : The growth rate from one quarter ago (Q-1) over two quarters ago (Q-2) has to be greater than the growth rate from two quarters ago (Q-2) over three quarters ago (Q-3).

In addition to this, we have added the following parameters:

Current Price greater than or equal to $5 : This screens out the low-priced stocks.

Average 20-day volume greater than or equal to 50,000 : High trading volume implies that the stocks have adequate liquidity.

Zacks Rank equal to 2 (Only Zacks' 'Buys' are allowed. With the Zacks Rank proving itself to be one of the best rating systems out there, this is a great way to start things off.) You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

The above criteria narrowed down the universe of around 7,676 stocks to only 31. Here are the top three stocks:

Verisign, Inc. (NASDAQ: VRSN - Free Report ) is a provider of domain name registry services and Internet security. The company operates through the Registry Services and Security Services segment. The Zacks Consensus Estimate for its current year earnings increased 1.1% over the last 60 days. The company's projected earnings growth for this year is a solid 8.9%.

58.com Inc (NYSE: WUBA - Free Report ) is a holding company. The company's business consists of online classifieds and listing platforms. The Zacks Consensus Estimate for its current year earnings soared more than 100% in the last 60 days. The company's projected earnings growth for this year is a whopping 157.9%.

RPC, Inc. (NYSE: RES - Free Report ) is a holding company for several oilfield services companies. The company provides a range of specialized oilfield services and equipment primarily to independent oil and gas companies. The Zacks Consensus Estimate for its current year earnings surged over 100% in the last 60 days. The company's projected earnings growth for this year is a stellar 194.2%.

You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.

The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.

Click here to sign up for a free trial to the Research Wizard today .

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

Disclosure: Performance information for Zacks' portfolios and strategies are available at: https://www.zacks.com/performance .

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Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.

About Screen of the Week

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros .

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Contact: Jim Giaquinto

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Visit: https://www.zacks.com/performance

Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer .

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.


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VeriSign, Inc. (VRSN): Free Stock Analysis Report

58.com Inc. (WUBA): Free Stock Analysis Report

RPC, Inc. (RES): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: VRSN , WUBA , RES


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