Overstock (OSTK) to Report Q2 Earnings: What's in Store? Inc.OSTK is expected to report second-quarter 2018 results on Aug 2.

In the last reported quarter, the company reported a loss of $1.74 per share compared with a loss of 23 cents in the year-ago quarter. Net Sales increased 3% year over year to $445.3 million.

Notably, shares of Overstock have returned 129.1% over a year, outperforming with the industry 's rally of 39.7%.

For the second quarter, the Zacks Consensus Estimate for revenues is pegged at $474.15 million. Further, the consensus estimate for the company is pegged at a loss of 82 cents.

Let's see how things are shaping up for this quarter.

Gaining Momentum in Blockchain Space

Overstock's continued efforts toward expansion of product offerings are likely to improve its market share and strengthen customer base. This is likely to drive the company's top-line growth in the to-be reported quarter.

With the emerging trend of blockchain worldwide, the company's strong focus on enhancing the portfolio of blockchain securities bodes well.

Overstock's tZERO platform is likely to drive the top line in the to-be reported quarter, driven by its initial coin offering. tZERO's prototype for its token trading platform remains positive.

Further, Overstock entered into a joint venture with BOX Digital Markets during the second quarter in order to develop a regulated exchange for security tokens trading.

Moreover, Overstock's decision of selling off its home e-commerce business will aid the company in focusing more on its core retail as well as blockchain business. Further, the company remains optimistic about its DeSoto platform.

Additionally, the company is positioned well in the blockchain space with the aid of its FinTech investments portfolio. This portfolio is comprised of investments in those companies which are leveraging blockchain technology; consequently this will aid revenue generation.

We believe these endeavors are likely to benefit the company's second-quarter results. However, intensifying competition in the retail sector poses a serious threat to the company's market position.

Moreover, changes made by Alphabet's Google in its search algorithms remains a concern for the sales growth of the company. However, Overstock has allocated its resources to address this challenge., Inc. Price and EPS Surprise, Inc. Price and EPS Surprise |, Inc. Quote

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP . Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

Currently, Overstock carries a Zacks Rank #3 but has an Earnings ESP of 0.00%. Consequently, surprise prediction is difficult.

Stocks That Warrant a Look

Here are few stocks worth considering as our model shows that these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Applied Materials AMAT has an Earnings ESP of +0.95% and a Zacks Rank #3. You can see the complete list of today's Zacks #1 Rank stocks here.

NVIDIA NVDA has an Earnings ESP of +0.48% and a Zacks Rank #3.

Agilent Technologies A has an Earnings ESP of +0.88 and a Zacks Rank #3.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>

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, Inc. (OSTK): Free Stock Analysis Report

NVIDIA Corporation (NVDA): Free Stock Analysis Report

Applied Materials, Inc. (AMAT): Free Stock Analysis Report

Agilent Technologies, Inc. (A): Free Stock Analysis Report

To read this article on 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.

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

In This Story


Other Topics

Earnings Stocks

Latest Markets Videos


Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

Learn More