U.S. Markets open in 7 hrs 14 mins

The Zacks Analyst Blog Highlights: Facebook, Twitter, Google, Baidu and On Semiconductor

Zacks Equity Research

For Immediate Release
Chicago, IL – January 28, 2014 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Facebook ( FB- Free Report), Twitter ( TWTR- Free Report), Google ( GOOG- Free Report), Baidu Inc. ( BIDU- Free Report) and On Semiconductor Corp. ( ONNN- Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Monday’s Analyst Blog:

Is Facebook (FB) Poised to Beat Earnings?
We expect Facebook ( FB- Free Report) to beat expectations when it reports fourth quarter 2013 results on Jan 29, 2014. The company posted a 30.8% positive surprise in the last quarter. Moreover, Facebook has posted an average positive earnings surprise of 17.4% over the past four quarters.  

Let’s see how things are shaping up for this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Facebook is likely to beat earnings because it has the right combination of two key ingredients.

Positive Zacks ESP: Earnings Surprise Prediction or ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is at 9.52%. This is very meaningful and a leading indicator of a likely positive earnings surprise for shares.

Zacks #3 Rank (Neutral): Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings. The sell rated stocks (#4 and #5) should never be considered going into an earnings announcement.  

The combination of Facebook’s Zacks Rank #3 (Hold) and 9.52% ESP makes us very confident in looking for a positive earnings beat on January 29.

What's Driving the Better-Than-Expected Earnings?

Facebook continues to bolster the bottom line as it had successfully managed to beat the earnings estimate in three out of the last four quarters.

Although Facebook fatigue among teenagers is a concern for the company, we believe that its decision to allow teenage users to make public posts is a positive step. Moreover, the company continues to gain market share in the mobile advertisement segment, which is a key growth catalyst.

Nevertheless, stiff competition from Twitter ( TWTR- Free Report), Google ( GOOG- Free Report), Snapchat and Tumblr seems to pose an impediment for growth in the near future.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:  

Baidu Inc. ( BIDU- Free Report), earnings ESP of +7.09% and a Zacks Rank #1 (Strong Buy).

On Semiconductor Corp. ( ONNN- Free Report), earnings ESP of +14.29% and a Zacks Rank #2 (Buy).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros.  In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on FB - FREE
Get the full Report on TWTR - FREE
Get the full Report on GOOG - FREE
Get the full Report on BIDU - FREE
Get the full Report on ONNN - FREE
Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Read the analyst report on FB

Read the analyst report on TWTR

Read the analyst report on GOOG

Read the analyst report on BIDU

Read the analyst report on ONNN

Zacks Investment Research