There are many stocks this week that are walking dead, but fret not my fearless traders, we, at HPN, will lead you on the right path and away for those profit killing zombie stocks!!! Read the following recap from last week and what to watch for this week.
Last week’s recap:
Major U.S. indices moved higher over the past week, as of mid-day trading on Friday afternoon, led by technology stocks on the NASDAQ. In addition to recovering from a rough couple of weeks, the markets were boosted by a 0.8% increase in the Conference Board’s index of leading indicators last month, driven by ongoing gains in employment that should boost incomes and support economic growth. Investors remain concerned with weaker prospects overseas,
What to watch:
$YELP
Yelp saw a large sell off last week after worse than expected earnings. The stock dropped 18% on Thursday. Many analysyts still have a price target on $YELP in the $75-$85 range. We are bullish and $YELP and expect a quick recovery. This is a great stock to but at a huge discount. Investors need to keep in mind that the company originally guided to Q3 revenue of only $98 million to $99 million, but the actual numbers came in significantly higher at $102.5 million. A similar beat in Q4 would bring the actual revenue numbers closer to or even above analyst estimates at $111 million. Even more interesting is that the company guided up the full-year EBITDA forecast from an average of $68 million to a new level of $70 million. Investors should use any sell-off to get into the leading online consumer review site.
$TWTR
Twitter kicks off the week for social media earnings on Monday. After struggling for awhile to meet analyst expectations on monthly active user (MAU) growth, Twitter finally put up a satisfactory quarter this summer. With 271 million MAUs at its back Twitter has been focusing on product improvements to increase the amount of time users spend on its platform, increasing the value of its advertisements. Most notably this quarter Twitter launched Audio Cards, a feature which enables music and podcasts to be played directly on Twitter via Soundcloud. Twitter has a great track record of beating the Street’s EPS consensus and the Estimize consensus believes that pattern will hold on Monday. A great earnings play, but tread with caution playing earnigs is dangerous… but highly profitable.
$CYBR
Shares of Cyberark Software Ltd have experienced volatility in last monday’s trade as the quiet period for shares as expired.
Many top analysts are bullish on this security such as:
- Barclays: Equal-weight rating; $32 price target. Saket Kalia wrote, “Cyberark is a leader in the privileged account security space, with a thorough, well-integrated, and enterprise-ready solution.”
- Oppenheimer: Outperform rating $38 price target. Shaul Eyal stated, “We see CYBR as a solid acquisition candidate in a rapidly consolidating security market, as the leading networking and software companies, flushed with cash, are seeking to expand their product portfolio and increase their product footprint within their vast install bases.”
- Nomura: Buy rating; $36 price target. Nomura analysts find, “CyberArk is positioned to benefit from this increased awareness of the threat and growing evidence that perimeter defenses are not adequate. We believe CyberArk has the ability to capture increased share as it continues to broaden its product line and expand it sales distribution capacity.”
- William Blair: Outperform rating.
- JP Morgan: Neutral rating; $33 price target.
These are the stocks we are focusing on this week. Stay tuned for more stocks to watch soon…
And stay away from the zombies, unless it’s on Walking Dead(love that show)!!!
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