Stocks

Service Stocks Aug 3 Earnings Roster: VRSK, IT and More

The widely diversified services sector continued reviving from the pandemic blues through the second quarter of 2021, benefiting from the uptick in both manufacturing and non-manufacturing activities driven by the relaxation of restrictions and increased vaccination drives.

The quarter witnessed growth in major manufacturing industries like computer & electronic products; machinery; electrical equipment, appliances & components; transportation equipment, food, beverage & tobacco products; printing & related support activities; and petroleum & coal products.

Among services industries, notable growth came in from transportation & warehousing; management of companies & support services; retail trade; wholesale Trade; accommodation & food services; mining; utilities; construction; health Care & social assistance; finance & insurance; information; educational services; and professional, scientific & technical Services.

Earnings Picture So Far, and Expectations

The second-quarter earnings for the S&P 500 members of the Business Servicessector have been outstanding, so far. The sector had a commendable start with major players like Equifax EFX, IHS Markit INFO, Omnicom OMC, Interpublic IPG and Fiserv FISV beating on both earnings and revenues.

The latest Earnings Outlook suggests that earnings for those S&P 500 members of the business services sector, that have reported results, grew 40.2% year over year on 21.7% revenue growth.

Total quarterly earnings for the S&P 500 members of the sector are currently anticipated to display 35.3% year-on-year growth, and revenues will likely reflect a 18.6% rise. This compares favorably with the 8.5% and 3.9% decline in earnings and revenues in the third quarter of 2020, respectively.

VRSK, IT, FIS, DNB in Spotlight

Here we discuss five business services companies, scheduled to report second-quarter 2021 results on Aug 3.

Our quantitative model suggests that the combination of the following two key ingredients — a

positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Verisk Analytics, Inc. VRSK: This New Jersey-based provider of data analytics solutions in the United States and internationally is scheduled to report results after market close.

The Zacks Consensus Estimate for revenues is pinned at $733.1 million, indicating growth of 8% from the year-ago reported figure. Strength across Insurance and Energy and Specialized Markets segments is likely to have aided the top line.

The consensus mark for earnings is pegged at $1.34, calling for an increase of 3.9% from the year-earlier quarter’s reported figure. Cost discipline and lower share count are expected to have aided the bottom line.

Verisk has an Earnings ESP of -1.68% and carries a Zacks Rank #3. (Read more: Verisk to Report Q2 Earnings: What's in the Offing?)

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. Price and EPS Surprise

Verisk Analytics, Inc. price-eps-surprise | Verisk Analytics, Inc. Quote

Gartner, Inc. IT: This Connecticut-based research and advisory company will announce results before market open.

The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, suggesting growth of 15.3% from the year-earlier quarter's reported figure, likely to have been driven by segmental strength. The consensus estimate for earnings stands at $1.74, indicating a year-over-year plunge of 45%.

Gartner has an Earnings ESP of 0.00% and carries a Zacks Rank of 3, currently. (Read more: Gartner to Report Q2 Earnings: What's in the Cards?)

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. Price and EPS Surprise

Gartner, Inc. price-eps-surprise | Gartner, Inc. Quote

Fidelity National Information Services FIS: This Florida-based financial services Technology company’s Zacks Consensus Estimate for earnings is pegged at $1.55, calling for year-over-year growth of 34.8%. The consensus mark for revenues is pinned at $3.4 billion, suggesting a year-over-year jump of 14.4%.

Fidelity National has an Earnings ESP of +1.91% and holds a Zacks Rank #3, at present.

Fidelity National Information Services, Inc. Price and EPS Surprise

Fidelity National Information Services, Inc. Price and EPS Surprise

Fidelity National Information Services, Inc. price-eps-surprise | Fidelity National Information Services, Inc. Quote

Dun & Bradstreet Holdings, Inc. DNB: This New Jersey-based business decisioning data and analytics provider has an Earnings ESP of 0.00% and presently carries a Zacks Rank of 3.

The Zacks Consensus Estimate for revenues is pegged at $524.9 million, suggesting an increase of 24.8%, year over year. The consensus mark for earnings is pinned at 24 cents, indicating a fall of 7.7%, year on year.

Dun & Bradstreet Holdings, Inc. Price and EPS Surprise

Dun & Bradstreet Holdings, Inc. Price and EPS Surprise

Dun & Bradstreet Holdings, Inc. price-eps-surprise | Dun & Bradstreet Holdings, Inc. Quote


5 Stocks Set to Double

Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2021. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. 

Today, See These 5 Potential Home Runs >>

Click to get this free report

Omnicom Group Inc. (OMC): Free Stock Analysis Report

Fidelity National Information Services, Inc. (FIS): Free Stock Analysis Report

Interpublic Group of Companies, Inc. The (IPG): Free Stock Analysis Report

Fiserv, Inc. (FISV): Free Stock Analysis Report

Dun & Bradstreet Holdings, Inc. (DNB): Free Stock Analysis Report

Equifax, Inc. (EFX): Free Stock Analysis Report

Gartner, Inc. (IT): Free Stock Analysis Report

Verisk Analytics, Inc. (VRSK): Free Stock Analysis Report

IHS Markit Ltd. (INFO): Free Stock Analysis Report

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

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