Our first idea is a Social Media giant, which is reporting earnings today. Traders are currently 96% bullish on the shares, and the company is expected to post EPS of $0.97. Our other two recommendations are sells of previously-recommended stocks.
Buy: Facebook, Inc. (FB)
From Cabot Growth Investor
Facebook, Inc. (FB), has, very quietly, FB moved out to new price and relative performance (RP) highs in recent days, which is very encouraging. We also like some of the moves the firm has made during the past two weeks, including inking a deal that allows people to use PayPal as a payment option within many of Facebook’s properties (including Messenger).
That follows last week’s move by Facebook to allow appointment requests, food ordering and ticket purchases on various portions of its platform. Of course, earnings will be the big event (due out next Wednesday, November 2), and ad rates, Instagram’s sales ramp, and any 2017 outlook for capital spending will be key.
Long-term, we continue to see little reason why the company won’t continue to grow
rapidly for a long time to come. We’ll stay on Buy, but as usual, keep it small ahead of earnings.
Michael Cintolo, Cabot Growth Investor, www.cabot.net, 978-745-5532, October 26, 2016