For Immediate Release
Chicago, IL – June 20, 2013 – Zacks Equity Research highlights Synchronoss (SNCR-Free Report) as the Bull of the Day and Blucora (BCOR-Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on the Raven Industries Inc. (RAVN-Free Report), Google Inc. (GOOG-Free Report) and Facebook (FB-Free Report).
Here is a synopsis of all five stocks:
Synchronoss (SNCR-Free Report) After seeing some significant selling yesterday, a big bounce for this cloud service provider is in order. It is a Zacks Rank #1 (Strong Buy). It is the Bull of the Day.
The cloud is nebulous place / thing / idea. What major carriers like Vodafone, AT&T and Verizon know is that the cloud is a space that they must play in if they plan on competing in the future with tech powerhouses like Microsoft and Google. Currently, the cloud for consumers is dominated by Google and its Drive, but there are others like Dropbox, Box and the budding cloud services that Synchronoss services that are available from the wireless carriers.
On the most recent conference call the company noted that they will be focusing on the enterprise market. The mobile operator market is the focus after a partner in the space asked SNCR to develop an enterprise based cloud service. This was a big step for the company and a complete validation of what they have been working towards.
SNCR is a provider of on-demand transaction management software to Tier One communications service providers. The company's flagship ActivationNow and ConvergenceNow software platforms automate, synchronize and simplify electronic service creation and management of advanced wireline, wireless and IP services across existing networks.
Looking to the earnings history, I see a stock that has beaten the number in each of the last 6 reports. The most recent quarter was a beat of $0.03, which translated into a positive earnings surprise of 17%. That was an increase from the $0.02 beat reported for the December 2012 quarter, a 12.5% positive earnings surprise and the 11,7% positive earnings surprise posted in the September 2012 quarter.
Blucora (BCOR-Free Report) Tax season is over, but analysts are moving estimates lower for this company despite an outsized recent beat. It is a Zacks Rank #5 (Strong Sell). It is the Bear of the Day.
A lot of people might focus on the TaxAct side of the business and after Q1 and Q2, the revenues from that unit will almost always drop precipitously. That is one reason analyst might have reined in estimates, but this unit is growing on a year over year basis.
Blucora is engaged in providing internet-based solutions for consumers and business partners. It owns and operates two Internet businesses. Blucora's InfoSpace business provides online search and monetization solutions. The Company's TaxACT business provides online tax preparation solutions to consumers and professional preparers. Blucora was formerly known as InfoSpace and is headquartered in Bellevue, Washington.
Of late, earnings estimates have declined. The Zacks Consensus Estimate for 2013 has slipped from $1.02 in March to $0.96 in April down to $0.76 in May. That sort of decline is something makes a lot of people take notice is and is the major reason this stock has its low Zack Rank.
The same could be said of the 2014 Zacks Consensus Estimate as it fell from $1.54 in March, to $1.34 in April down to $1.03 in May. Earnings estimate revisions are the largest component of the Zacks Rank that can influence a change in rank.
Raven Collaborates with Google
Raven Industries Inc. (RAVN-Free Report) has collaborated with Google Inc. (GOOG-Free Report) to provide high-speed wireless Internet accessibility in rural, remote and under-served areas of the world by utilizing high-tech balloons.
Raven Aerostar, a division of Raven, has been working for several months with Google in a pilot project called Project Loon. The companies will share their technologies in the project, which is still in its early stage.
Search engine giant Google will use the 60 feet tall high-tech balloons designed by Raven as well as its flight control system. The system along with the software developed by Google will direct the path of the balloons. These high altitude balloons carried by the wind will be able to move in the right direction providing high-speed Internet access.
Over the years, Internet has gradually become a necessity. However, a fast and easily accessible Internet connection is still out of reach in the developing nations and rural areas. With the help of this high altitude balloon engineering, people can get improved Internet access.
This improved technology has the potential to change millions of lives through improved medical care, access to knowledge and enriched agriculture. However, the Aerostar segment will continue to face government uncertainty and sluggish demand. This innovation is in line with its attempt to offset government uncertainty by enhancing proprietary technology revenues, including the sale of advanced radar systems, high-altitude research balloons and aerostats in international markets.
In an attempt to obtain benefits of internet connectivity, Raven has also launched a new website recently. Ravenprecision.com, the website designed by Raven Industries Applied Technology Division, will allow its customers to access information from anywhere. The visitors will also get user-friendly experience connecting through Facebook (FB-Free Report), allowing better rendering of content on a mobile device and eliminates the need for multiple versions of the company site.
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