Tech Stock Movers of the Week (Aug. 7-11, 2017)

tech stock moversGreat news for our members: One of Money Morning’s top outperforming stocks, Kratos Defense & Security Solutions Inc. (Nasdaq: KTOS), made the list of last week’s biggest tech stock* gainers. It’s now up 153% since Chief Investment Strategist Keith Fitz-Gerald told readers it was giving them a great entry point.

The biggest reason for last week’s drastic tech ups and downs was earnings reports.

The top tech gainer, Autohome Inc. (NYSE: ATHM), got a nice earnings-related boost that added to an already fantastic year. It’s now up 147.6% in 2017. The Beijing-based company, which specializes in automobile websites and mobile application, reported Wednesday that Q2 earnings per share beat estimates by 32% and grew 53% from a year earlier. According to Post Analyst, Autohome currently has a consensus “Outperform” rating from eight Wall Street analysts. Last week’s rise was particularly steady, as the stock closed higher in each of the five days.

Electronics for Imaging Inc. (Nasdaq: EFII) made up about half of its losses from the previous week, when it led our losers list. The digital printing company had to postpone its second-quarter financial report, prompting investigations for potential securities fraud. There was no good news last week and, in fact, attorneys have filed a shareholder class-action lawsuit against the company. The bounce may only reflect some investors’ opinion that the 46% drop the week before was more than the controversy warranted.

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Now for last week’s tech disappointments...

Luxoft Holding Inc.’s (NYSE: LXFT) 25.6% fall was after it missed earnings expectations by 33%. Earnings per share fell from $0.62 a year ago to $0.50. The Swiss IT company pointed to an expected decline in revenue from its top two clients as a key reason for the disappointing report – a believable explanation, considering revenue from other clients grew 55% from a year earlier. Still, Luxoft has lowered expectations for the rest of the year, and the market has adjusted its valuation accordingly.

Sykes Enterprises Inc. (Nasdaq: SYKE) beat estimates in its Aug. 7 report, but guidance was adjusted lower. Earnings per share came in at $0.37, up $0.01 from a year ago, compared to an expected $0.33. The Tampa-based company combines information technology services with an e-commerce platform. In July, Zacks Investment Research downgraded Sykes from a “Strong Buy” to a “Hold”. Shares are down 5.4% in 2017 so far.

Tech Stocks to Watch This Week

A few stocks we’re keeping our eye on...

  • BitAuto Holdings Ltd. (NYSE: BITA) is reporting earnings on Tuesday, Aug. 15. Analysts are expecting EPS of $0.22, up from $0.19 a year ago. The stock is up 107% in 2017 so far.
  • Cisco Systems Inc. (Nasdaq: CSCO) reports on Wednesday, Aug. 16. Cisco is currently involved in a patent dispute with Arista Networks Inc. (NYSE: ANET), as we mentioned in our most recent “Best Stocks to Buy Now” roundup.
  • Alibaba Group Holding Ltd. (NYSE: BABA) reports on Thursday. Alibaba is one of our top-performing picks, up 65% since Keith Fitz-Gerald recommended it in September 2014.

We’ll keep you updated if there’s anything you need to know to make money on these moves.

*Stocks have a primary listing on a U.S. exchange, a market cap greater than $1 billion, and are in either the Technology Services or Electronic Technology sector. Data and analytics provided by FactSet.

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About the Author

Stephen Mack has been writing about economics and finance since 2011. He contributed material for the best-selling books Aftershock and The Aftershock Investor. He lives in Baltimore, Maryland.

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