The Zacks Analyst Blog Block, Coinbase and V2X

For Immediate ReleasesChicago, IL – February 12, 2025 – Zacks.com announces the list of stocks and ETFs featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include like Block, Inc. XYZ, Coinbase Global, Inc. COIN and V2X, Inc. VVX.Here are highlights from Wednesday’s Analyst Blog:3 Service Firms Poised to Beat Estimates in Q4Reflecting on the fourth quarter of 2024, the U.S. service sector maintained strong momentum, benefiting from economic stability and continued expansion in non-manufacturing activities. Key growth drivers included the accelerating AI revolution, rising demand for cost efficiency, and an increased emphasis on regulatory compliance. Digital transformation remained pivotal, reshaping business operations and enhancing service delivery.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.A number of technology companies are set to report their earnings results over the next couple of weeks. We have picked three technology stocks which are well-poised to beat earnings estimates this season.Resilient Growth and Strong Service DemandThe economy remained resilient, with GDP growing 2.8% in 2024, slightly below the 2.9% growth recorded in 2023, according to the Bureau of Economic Analysis. Non-manufacturing activities remained robust, as evidenced by the Services PMI, which stayed above the 50% threshold for the 53rd time in 56 months, indicating sustained expansion since the post-pandemic recovery.Several industry-specific factors fueled growth in the quarter. Essential services, such as waste management, experienced steady demand, while risk mitigation and consulting services saw increased relevance amid evolving regulations. Additionally, companies sought expertise in operational efficiency and cost reduction, reinforcing the demand for specialized service providers.AI-Driven Innovation Boosts Service SectorThe AI revolution played a transformative role, driving automation, efficiency and innovation across multiple industries. Businesses leveraged AI-driven insights to enhance customer experiences, streamline processes and improve decision-making. The ongoing shift toward digital solutions also bolstered competitiveness across service-oriented businesses.Multiple service industries, including transportation and warehousing, corporate management, retail and wholesale trade, accommodation and food services, mining, utilities, construction, healthcare, finance, insurance, education, and information services, demonstrated resilience and healthy activity throughout the quarter. Their sustained strength underscores the sector’s crucial role in supporting broader economic stability and growth.Stocks Poised to Beat This SeasonWith the existence of a number of players in the sector, finding the right business services stocks that have the potential to beat on earnings can be daunting. Our proprietary methodology, however, makes it fairly simple.You could narrow down the list of choices by looking at stocks that have the combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), and a positive Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.Earnings ESP is our proprietary methodology for determining stocks that have the best chances to surprise with their next earnings announcement. It is the percentage difference between the Most Accurate Estimate and the Zacks Consensus Estimate.Our research shows that for stocks with this combination, the chance of an earnings surprise is as high as 70%.Here are our picks.Block, Inc.: The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $6.2 billion, indicating growth of 8% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 82 cents per share, suggesting 82.2% growth from the year-ago quarter’s reported number. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 9.3%.XYZ has an Earnings ESP of +1.52% and a Zacks Rank of 3 at present. It is scheduled to declare its fourth-quarter 2024 results on Feb. 20.Block, Inc. price-eps-surprise | Block, Inc. QuoteCoinbase Global, Inc.: The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $1.6 billion, indicating growth of 67.2% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 87 cents per share, suggesting a 16.4% decline from the year-ago quarter’s reported number. Coinbase surpassed the consensus estimate in the past four quarters, with an average beat of 341.4%.COIN has an Earnings ESP of +62.12% and a Zacks Rank of 3 at present. It is scheduled to declare its fourth-quarter 2024 results on Feb. 13.Coinbase Global, Inc. price-eps-surprise | Coinbase Global, Inc. QuoteV2X, Inc.: The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $1.1 billion, indicating year-over-year growth of 4.7%. For earnings, the consensus mark is pegged at $1.1, suggesting a 7.4% decline from the year-ago quarter’s reported figure. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 13.4%.VVX carries an Earnings ESP of +4.19% and a Zacks Rank of 3 at present. The company is scheduled to declare its fourth-quarter 2024 results on Feb. 24.V2X, Inc. price-eps-surprise | V2X, Inc. QuoteWhy Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>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 Coinbase Global, Inc. (COIN): Free Stock Analysis Report V2X, Inc. (VVX): Free Stock Analysis Report Block, Inc. (XYZ): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks