3 Tech Stocks That Will Beat Earnings

  • 10/05/2016
  • Source: NASDAQ
  • by: Zacks Investment Research
3 Tech Stocks That Will Beat Earnings
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Broadcom Limited-  AVGO

Broadcom Limited is a designer and supplier of analog and digital semiconductor connectivity solutions.  It provides data center networking, home connectivity, broadband access, telecommunications equipment, smartphones and base stations, servers, storage, and more.  Broadcom, formerly known as Avago Technologies, is a Zacks Rank #1 (Strong Buy).  This year, EPS and sales are projected to grow by 16.8% and 94% respectively.      

Analysts have been revising their estimates upwards across the board for the current quarter, current year, and next year.  13 analysts have increased their EPS estimates over the last 60 days, with seven of those analysts making revisions within the last month.  In the last thirty days, our EPS consensus estimate has improved, going from $2.71 to $2.88.  AVGO could beat these expectations since it has done just that in each of the last four quarters.  Broadcom is expected to release its next quarterly earnings results in early December.

Intel Corporation-  INTC

Intel Corporation is one of the largest semiconductor chip makers out there.  The company designs and manufactures communications and computing components such as microprocessors, chipsets, motherboards, and wireless and wired connectivity products.  INTC is a Zacks Rank #1 (Strong Buy) and it has a market cap of $178.6 billion.  It's worth noting that the stock provides investors with a dividend yield of 2.75%. 

A whopping 28 analysts have revised their current quarter and current year EPS expectations higher over the last 60 days.  In that span of time, no analysts revised their current quarter or current year expectations lower.  The slew of positive revisions has helped our EPS consensus go 7.5% higher in the last month.  Our EPS estimate currently stands at $0.72, but Intel could top this estimate since it has consistently topped our consensus over each of the last four quarters.  Intel will release its next quarterly earnings report in mid-October.

Hasbro Inc-  HAS

Hasbro Inc. produces games and other entertainment products and services for children and families.  The company sells its products in the US and internationally with brands such as Playskool, Tonka, Kenner, Super Soaker, Milton Bradley, Parker Brothers, and Wizards of the Coast.  This year, Hasbro's earnings and sales are forecasted to grow by 16% and 8.31% respectively.  HAS stock is a Zacks Rank #2 (Buy) and it doles out a 2.57% dividend yield.

Two analysts have revised their estimates higher for the current quarter, current year, and next year.  Like Intel and Broadcom, Hasbro has not seen estimates revised downwards for those periods.  Hasbro has a positive Earnings ESP (Expected Surprise Prediction) of 0.58%.  When a stock has a positive Earnings ESP and a Zacks Rank #3 (Hold) or better, it has an especially strong chance of surpassing our EPS expectations.  Hasbro is set to report its next quarterly earnings in mid-October.

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