Earnings are always the main driver for stock prices. But right after what is presented during earnings season in importance are earnings revisions. When earnings estimates are revised higher, then the road forward always looks a little better. In a new report, the technology team at UBS highlight five stocks with the most positive earnings-per-share revisions in the most recent quarter.
While technology continues to have a solid year, with the sector up almost 7.73% through last week, the overall earnings have been mixed. As investors are well aware, missing earnings and revising forward estimates lower is the twin knockout for stocks. The following five stocks from the UBS report had positive earnings revisions.
This is one of the fastest growing security software companies. FireEye Inc. (NASDAQ: FEYE) garnered 30% of the advanced persistent threat category, and other Wall Street analysts are very bullish on the prospects. The company held a widely anticipated analyst day this week, and from all reports, the senior management was very positive about the future. Takeover chatter surrounds the stock, and it would not be surprising to eventually see a mega-cap tech stock take a run at it.
Earlier this year, FireEye announced the new release of FireEye Email Threat Prevention Cloud that adds the traditional email security features of anti-spam and antivirus protection to its advanced threat detection capabilities.
FireEye announced recently a huge partnership with tech giant Hewlett-Packard to develop an advanced suite of network threat detection and analysis software. The two companies said they will develop an industry standard architecture for providing customers with “a blueprint” for threat protection.
UBS rates the stock at Buy with a $50 price target. The Thomson/First Call consensus price target is $47.70. Shares closed Wednesday at $47.69.
This company has continued to post outstanding earnings. MicroStrategy Inc. (NASDAQ: MSTR) is a leading worldwide provider of enterprise software platforms. The company’s main business goal is to provide enterprise analytics, mobility and security platforms that are flexible, powerful, scalable and user-friendly.
The company recently released MicroStrategy 10, in which for the first time MicroStrategy’s analytics platform marries enterprise analytics, mobility and security with the flexibility and ease of use desired by many business users today. MicroStrategy 10 satisfies the needs and requirements of many information technology (IT) departments, and the company thinks that business users will enjoy this powerful and very agile solution.
The consensus price target is posted at $205.75. The stock closed Wednesday at $177.80 per share.