What to Expect from Overstock.com's (OSTK) Q4 Earnings?
Overstock.com Inc. OSTK is expected to report fourth-quarter 2015 results after the closing bell on Feb 4.
Overstock.com is an online closeout retailer that sells brand-name merchandise at deep discounts. The offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.
Overstock, a Bitcoin supporter, hopes to reinvent the public stock market using cryptosecurities, or virtual stocks based on Bitcoin's blockchain technology. Bitcoin is a digital currency platform with no central regulating authority involved in the transactions. It is also called crypto currency because it utilizes military-grade cryptography to protect users against fraud. Bitcoin and other cryptocurencies operate on blockchain which is a distributed public ledger.
Cryptosecurities will likely bring the next major change in the stock market. With the SpeedRoute deal, Overstock will enter a new financial technology space. SpeedRoute’s infrastructure and underlying technologies will help the company to connect the t0 securities trading platform with the entire U.S. equity market. This will enhance transparency and efficiency of the existing capital markets, which was the basic idea behind t0.com.
The blockchain technology allows investors and buyers to track down their purchases and ownership of cryptosecurities, ensuring complete transparency. Moreover, the t0.com blockchain technology facilitates same-day settlement of securities.
Additionally, Overstock started the Black Friday holiday sales event a full week before the shopping holiday. This should have a favorable impact on the fourth-quarter results.
Apart from this, Overstock also announced that Merrill Lynch Professional Clearing Corporation (“Merrill Pro”), the last defendant remaining after Goldman Sachs, in Overstock.com’s longstanding market manipulation case, has settled its claims by paying $20 million to Overstock.com and its co-plaintiffs. This is likely to boost results in the to-be-reported quarter.
Stocks to Consider
Here are some stocks, which you may consider as they have a favorable Zacks Rank and a positive Earnings ESP and are likely to post an earnings beat this quarter:
MaxLinear, Inc. MXL has an Earnings ESP of +2.94% and a Zacks Rank #1 (Strong Buy).
SolarWinds, Inc. SWI has an Earnings ESP of +2.27% and a Zacks Rank #1.
Fidelity National Information Services, Inc. FIS has an Earnings ESP of +2.17% and a Zacks Rank #3.
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