Quantcast

The Zacks Analyst Blog Highlights: Qualys, VMware, DXC, IPG and Entegris


Shutterstock photo

For Immediate Release

Chicago, IL - March 21, 2018 - Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Qualys Inc. QLYS , VMware Inc. VMW , DXC Technology Company DXC , IPG Photonics Corporation IPGP and Entegris, Inc. ENTG .

Here are highlights from Tuesday's Analyst Blog:

Dumping Facebook? 5 Better Tech Stocks

Spooked by the data breach news, social media giant Facebook was one of the worst-performing stocks on Wall Street in Monday's trading session. This has sparked concerns over increased regulation for large tech companies, triggering a selloff in the hot and soaring technology corner of the broad stock market.

Both the S&P technology index and tech-heavy Nasdaq Composite Index witnessed the worst one-day fall since the selloff in early February, declining 2.1% and 2.5%, respectively.

What Happened?

The steep decline came following reports from New York Times and London's Observer, which revealed that data analytics firm Cambridge Analytica, which had ties to the Trump campaign, gained inappropriate access to data on more than 50 million Facebook users. This has sparked broader concerns about data privacy and security, and will likely lead to increased scrutiny over data security and a relatively heavy regulatory pressure.

As such, shares of Facebook tumbled 6.8% in Monday's trading session, representing the worst one-day drop in nearly four years, and wiped out $36.4 billion from the company's market value. With the slide, the stock is down 11.6% from the latest peak, signaling that it has entered correction territory.

Facebook currently has a Zacks Rank #2 (Buy) and a Growth Score of B, suggesting that it is primed for growth in the coming months. It saw solid earnings estimate revision of 58 cents for this year over the past 60 days and has an estimated growth rate of 16.72%. Revenues are also expected to grow 36.3% for this year. However, the networking giant belongs to the bottom-ranked Zacks industry ( bottom 30% ), which signals some pain in the near term.

Other stocks in the FAANG group, namely Amazon, Apple, Netflix and Alphabet, also saw terrible trading, losing 1.7%, 1.5%, 1.6% and 3.0%, respectively. Social media companies including Twitter and Snap dipped 1.7% and 3.5, respectively.

Solid Sector Outlook

Despite the slide, the outlook for the sector is promising. This is especially true as the tech sector appears fully emerged from the burst of the dot-com bubble. The emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, and artificial intelligence as well as strong corporate earnings are acting as the key catalysts.

Additionally, the twin tailwinds of Trump's tax reform plan and a rising interest rate scenario are pushing the stocks higher. Adding to the strength is a pickup in the economy and better job prospects that are giving a solid boost to economically sensitive growth sectors like technology, which typically perform well in a maturing economic cycle. With the global economy gathering momentum, technology companies are likely to outperform and less susceptible to interest rates or deregulation.

Top Picks

Given this, we have highlighted five stocks that are unfazed by the latest tech rout and poised to outperform in the weeks ahead:

Qualys Inc.  is a provider of cloud security and compliance solutions that enable organizations to identify security risks to their information technology infrastructures help protect their IT systems and applications from cyberattacks. The stock gained 0.5% on the day and has an estimated earnings growth rate of 6.72% for this year. It has a Zacks Rank #1 (Strong Buy) and a Momentum Score of B. You can see  the complete list of today's Zacks #1 Rank stocks here .

VMware Inc.  provides virtualization and cloud infrastructure solutions from the desktop to the data center in the United States and internationally. It has an estimated earnings growth of 14.64% for this fiscal year (ending Jan 2019) and was up 0.9% amid the tech sector turmoil. It has a Zacks Rank #1 and a Growth Score of B.

DXC Technology Company  provides information technology services and solutions primarily in North America, Europe, Asia and Australia. Shares of DXC rose 1.2% on the day as the company is expected to see massive earnings growth of 153.55% for the fiscal year (ending March 2018). DXC Technology has a Zacks Rank #2 and a VGM Score of A.

IPG Photonics Corporation  is the world leader in high-power fiber lasers, fiber amplifiers, and diode lasers used in various applications. The stock added 0.2% on the day and has an estimated earnings growth rate of 15.29% for this year. It has a Zacks Rank #2 and a Momentum Score of B.

Entegris, Inc.  is a leading provider of materials management solutions to the microelectronics industry including, in particular, the semiconductor manufacturing and disk manufacturing markets. The stock is expected to generate earnings growth of 21.53% for this year and saw a 1.1% rise in its share price amid the Facebook-led tech sell-off. It has a Zacks Rank #1 and a Growth Score of B.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively. And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

http://www.zacks.com

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 http://www.zacks.com/performance  for information about the performance numbers displayed in this press release.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Entegris, Inc. (ENTG): Free Stock Analysis Report

Qualys, Inc. (QLYS): Free Stock Analysis Report

Vmware, Inc. (VMW): Free Stock Analysis Report

IPG Photonics Corporation (IPGP): Free Stock Analysis Report

DXC Technology Company. (DXC): Free Stock Analysis Report

To read this article on Zacks.com click here.

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: ENTG , QLYS , VMW , IPGP , DXC



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?