Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Aug 19, 2020
Second Round of Software Earnings Reports Set for Next Week

Second Round of Software Earnings Reports Set for Next Week

The most actively traded software ETF is the iShares North American Tech-Software ETF (NYSE: IGV). The fund trades just over a million shares per day and has total assets of approximately $5 billion. The fund has seen a tremendous run up since the March low, rallying over 70%.

The rally has stalled a little in recent weeks with the IGV trading between $280 and $300 for most of the last seven weeks, going back to the beginning of July. The range-bound trading could come to a halt next week as there are nine different software companies set to report earnings results. Five of the companies set to report are among the top 10 holdings in the IGV.

Looking at the Tickeron scorecard we see that the overall group ranking is a “strong buy”. There are five “strong buy” ratings and four “buy” ratings.

The table below shows the nine stocks with the current consensus EPS estimate, where the estimate was three months ago, and what the company reported for EPS in the same time period last year. I also included the scorecard ratings for each individual company.

Granted these companies offer different kinds of software products. Some are application software firms and others are infrastructure oriented. Some investors might even argue that Veeva Systems (VEEV) is healthcare company more so than a software company.

Regardless of their classifications, we see that almost all of the companies are expected to see earnings improve compared to last year. Splunk (SPLK) and VMware (VMW) are the exceptions in this case. Intuit (INTU), Workday (WDAY), and Autodesk (ADSK) are expected to see the greatest increases.

Diving into the fundamental analysis scorecard, Intuit, Autodesk, Veeva, and Salesforce.com (CRM) have the best ratio of bullish signals to bearish signals. Intuit has two positive indicators and zero bearish signals. The other three all have three bullish signals and three bearish signals.

Conversely, Okta (OKTA) has the worst ratio of positive signals to negative signals with five negatives and zero positives. Splunk has one positive indicator and four negative indicators. Box Inc. (BOX) and Workday both have one positive signal and four negative signals.

Two specific areas of concern for the group as a whole are the Outlook Ratings and the P/E Growth Ratings. Seven of the nine get negative indications in the Outlook Rating category. Six of the nine get negative indications from the P/E Growth Rating category.

The technical analysis is much better for the group as a whole. Autodesk gets five positive signals and zero negative signals. Salesforce.com gets three bullish signals and only one bearish signal.

Splunk has the worst technical outlook with four bearish signals and only one bullish signal. Veeva gets four negative signals and two bullish signals.

There isn’t a single category where the majority of companies are seeing bearish signals. The worst two categories are MACD and Bollinger Bands where four different companies are getting bearish signals from those indicators.

Conversely, five of the nine companies are getting positive signals from the AROON indicator and four are getting bullish signals from the Moving Average Indicator.

The overall scorecard grades are good with five strong buy ratings and four buy ratings. Individual indicator scores are far more mixed as the companies head in to earnings reports.

All nine stocks are up over the last three months with Veeva leading the way with a gain of 36.5%. Autodesk is up 25%, Splunk has gained 21.2%, Workday has moved up 17.3%, and Salesforce has gained 17.1%. All five of those stocks are up more than the S&P 500.

The individual moves that occur after the earnings reports will likely be a mixture of gains and losses, but one thing is for certain—the volatility within the software industry is likely to increase dramatically next week.

Related Tickers: IGV
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 07, 2021
4 Tricks Hedge Funds Use to Get Ahead

4 Tricks Hedge Funds Use to Get Ahead

If the stock market were Major League Baseball, hedge funds and institutional investors would be the pros on championship teams while everyday self-directed investors (SDIs) are the benchwarmers in the minors.It’s how they get ahead, and it’s why 90% of SDIs lose money trying to play (invest and trade) in the major leagues. The 4 tricks we discuss below are rooted in one common theme: they all use Artificial Intelligence and algorithms to generate data and ideas.
John Jacques's Avatar
John Jacques
published in Blogs
Mar 22, 2018
A.I. Stock Market Predictions: Head & Shoulders

A.I. Stock Market Predictions: Head & Shoulders

Statistics for the Head-and-Shoulders Bottom Pattern The days where only hedge funds used algorithms to trade stocks are officially over. Now retail investors can use Artificial Intelligence (A.I.  Here’s an example of the algorithm in action: Late last year, Tickeron’s A.I.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Jul 10, 2020
3 Stocks to Buy if Coronavirus Second Wave Hits

3 Stocks to Buy if Coronavirus Second Wave Hits

By analyzing market trends from the first wave, you can predict behavior for the second. Technology stocks have performed at historic levels this year, but the market is severely overbought.To compensate for that, look at performance during Q1 and Q2, the height of global Covid shutdowns.
Edward Flores's Avatar
Edward Flores
published in Blogs
Feb 06, 2021
How to Become the Millionaire Next Door

How to Become the Millionaire Next Door

The Golden Gate Bridge is always a fixture of these walks too, one of man's most beautiful creations.  As we were walking, at one point she turned to me and said, "Man, I'll never have a million dollars."" My girlfriend is 27 years old and works as a graphic designer, making about $75,000 a year.
Alla Petriaieva's Avatar
Alla Petriaieva
published in Blogs
Feb 23, 2021
Is Ethereum’s Bomb about to Explode?

Is Ethereum’s Bomb about to Explode?

Ethereum’s software is set for an update in October.Until it is finished, participants in the Ethereum blockchain must determine how to delay the difficulty bomb – code that necessitates a steadily increasing amount of computer power to mine blocks and unlock rewards – that is already in place.
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Aug 07, 2018
When Is the Next Recession Coming?

When Is the Next Recession Coming?

However, we also know that economists predicted 22 recessions out of 11 that took place since 1945. Are there real recession signs we should watch for?Indeed, the answer is yes, and here are a few very important ones: The first one is almost obvious and known to everyone – it is the Fed.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 22, 2020
Central banks have been buying $2.4 billion in assets every hour for the past two months

Central banks have been buying $2.4 billion in assets every hour for the past two months

Some $17.8 billion has been poured into  bond markets over the past week, the biggest move in more than three months.Around $3.5 billion has been invested into gold, the second largest on record. 
Rick Pendergraft's Avatar
Rick Pendergraft
published in Blogs
Feb 07, 2021
Mid-January Short Interest Report Shows 8 Stocks with Good Fundamentals and High Short Interest
Sergey Savastiouk's Avatar
Sergey Savastiouk
published in Blogs
Mar 10, 2021
How to Start Trading Penny Stocks

How to Start Trading Penny Stocks

Penny stocks have long been marginalized within the professional investment community, oftentimes being painted with a broad brush of simply being “too risky.” Leonardo DiCaprio’s depiction of the penny stock peddling conman, Jordan Belfort, in the Wolf of Wall Street certainly didn’t help.Here are four reasons to start trading them now. Reason #1: Let’s State the Obvious -- Penny Stocks are Cheap A single share of Apple Inc. costs over $350.
Abhoy Sarkar's Avatar
Abhoy Sarkar
published in Blogs
May 08, 2020
US unemployment rate jumps to 14.7%, the highest in series history

US unemployment rate jumps to 14.7%, the highest in series history

The U.S. economy’s employment fell by -20.5 million in April. The coronavirus crisis led to unemployment rate soaring to 14.7% in the U.S, the highest rate in the Bureau of Labor Statistics-tracked series history that goes back to 1948. However, the figures were better compared to several economists'/analysts' forecasts of 22 million job losses and 16% unemployment rate.  Another unemployment measure that includes those who have stopped looking for work as well as those holding part-time jobs for economic reasons also touched an all-time high of 22.8%.