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What Awaits Overstock.com (OSTK) this Earnings Season?

Published 04/22/2016, 12:13 AM
Updated 07/09/2023, 06:31 AM
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Overstock.com Inc. (NASDAQ:OSTK) is expected to report first quarter 2016 results on Apr 25. It is an online retailer that sells brand-name merchandise at deep discounts. Its offerings include bed-and-bath goods, kitchenware, watches, jewelry, electronics, sporting goods and designer accessories.

Let’s see how things are shaping up for this announcement.

Factors at Play

Overstock has been engaged in legal battles with several brokerage firms over issues of stock price manipulation, most recently with Goldman Sachs (NYSE:GS) and Merrill Lynch. Merrill Lynch eventually settled by paying $20 million to Overstock.com and its co-plaintiffs. The Goldman Sachs case was dismissed by the court.

Overstocks’ continuous efforts to reduce illegal stock manipulation and reform capital markets is likely to boost its share price and results in the to-be-reported quarter.

Overstock has been a Bitcoin supporter for two years and has successfully leveraged the blockchain technology.

Bitcoin is a digital currency platform with no central regulating authority involved in the transactions. It is also called crypto currency because it utilizes military-grade cryptography to protect users against fraud. Bitcoin and other cryptocurencies operate on blockchain, which is a distributed public ledger.

The t0.com blockchain technology allows investors and buyers to track their purchases and ownership of crypto securities, ensuring complete transparency. Moreover, it facilitates same-day settlement of securities.

However, the company has not yet achieved the expected level of synergy between blockchain and cryptocurrency and may separate them in the near future.

Stocks to Consider

Here are some companies that can be considered as our model shows that they have the right combination of a positive Earnings ESP and a favorable Zacks Rank to post an earnings beat this quarter:

Equifax Inc. (NYSE:EFX) with an Earnings ESP of +1.74% and a Zacks Rank #2 (Buy).

SkyWest Inc. (NASDAQ:SKYW) has an Earnings ESP of +16.00% and a Zacks Rank #2.

Fidelity National Information Services, Inc. (NYSE:FIS) with an Earnings ESP of +2.70% and a Zacks Rank #3 (Hold).

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SKYWEST INC (SKYW): Free Stock Analysis Report

EQUIFAX INC (EFX): Free Stock Analysis Report

FIDELITY NAT IN (FIS): Free Stock Analysis Report

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