5 Stocks to Watch After the Market Closes Today
Palo Alto Networks (PANW): Palo Alto networks is one of many cyber security companies to have emerged in recent years. Like many of its peers, the company has suffered during earnings season from decelerating earnings and revenue growth. Shares have subsequently taken a beating, drawing down about 8% in 2016. Frequent product refreshes coupled with an expanding user base should continue to positively impact top line growth. Additional strength across all its markets and business segments will help as well. Nonetheless, decelerating revenue growth from weak IT spending and increased competition will likely result in slower growth.
Jack in the Box (JACK): JACK has consistently outperformed the broader restaurant industry in recent quarters thanks to the success of its namesake brand and Qdoba restaurants. Analysts are optimistic that the eatery can continue making gains from the ongoing strength in the quick service industry. Meanwhile, Chipotle’s woes over the past year have helped shift traffic trends towards mexican fast casual alternatives, particularly Qdoba. Shares have soared 32% in 2016 as JACK continues to improve its position in the overall restaurant industry. Furthermore, increased marketing, remodeling efforts and frequent menu innovations are all expected to drive top line growth. Management expects all these positive initiatives to contribute to comp growth of 1-2% for both Jack in the Box and Qdoba restaurants.
Sina (SINA): Sina has been in a position of strength this year despite weaker trends coming out of China. Shares are up 37% this year thanks to better than expected earnings in 2 of the past 3 reports. Analysts are optimistic the Chinese company can build on its success given its robust product pipeline and heavy investment in product development and marketing. That said, there still remains significant near-term headwinds that could stunt growth. Online search restrictions in the region along with stiff competition from the likes of WeChat and Alibaba will have an impact on traffic trends.
Brocade Communications (BRCD): It was recently announced that Broadcom agreed to purchase Brocade Communications for $5.5 billion. That deal was valued at about $12.75 per share, marking over a 50% premium from where Brocade had been trading the day prior. Naturally this afternoon's reports will be an afterthought to the comments management makes about the deal during the conference call. It is believed that the transaction will be centered around Brocade’s storage area network business which will compliment Broadcom’s existing offerings.
Dycom Industries (DY): The leading provider of administrative services to the telecom industry has been in a position of strength in recent quarters. Shares are up nearly 30% in the 2016 on better than expected reports and robust growth. Analysts at Estimize aren’t as optimistic that the company continue posting gains. Comparisons are expected to decline sharply from previously quarters which were as high as 100% growth on the bottom line and roughly 40% on the top. The divestiture of Google’s Fiber projected have greatly affected sentiment ahead of this upcoming report.
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