Bull of the Day: ScanSource (SCSC)
Earnings growth has been the key to this stock's meteoric rise.
After a long holiday weekend, the market looks bid heading into this morning’s action. That can make anyone feel like Warren Buffet. Over the long run, it is the stocks with steady earnings which will outperform those that can’t seem to make a buck. One way to uncover stocks with steady earnings is by leaning on the time-tested power of the Zacks Rank. Stocks which are Zacks Rank #1 (Strong Buy) have a good chance of keeping the earnings flowing.
Today’s Bull of the Day is one such stock. I am talking about ScanSource SCSC. ScanSource, Inc. distributes technology products and solutions in the United States, Canada, and internationally. It operates in two segments, Worldwide Barcode, Networking & Security; and Worldwide Communications & Services.
ScanSource, Inc. Price and Consensus
The reason for the favorable Zacks Rank is the recent earnings estimate revisions coming to the upside. Over the last thirty days, analysts have increased their earnings estimates for the current quarter, next quarter and the current year. The bullish sentiment has pushed up the Zacks Consensus Estimate for the current quarter from 66 cents to 75 cents, next quarter from 78 cents to 83 and the current year from $2.77 to $3.14. That sets current year EPS growth at 14.6% while next year is currently estimated to grow by 17.68%.
Those positive revisions, along with a series of quarterly earnings beats have helped the stock rally dramatically. Going back to late August 2020, the company beat earnings by 35.71% when the stock was trading down at $20.48. Since then, five consecutive quarterly earnings beats along with upside revisions have helped the stock to rally up to $37.56 as of the close on September 3rd.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
ScanSource, Inc. (SCSC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research