Jefferies Upgrades Tech to Overweight (XLK)
- Wall Street surges to new highs; transports set record
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Abbott (ABT) Files Complaint to Terminate Alere (ALR) Acquisition
- Costco Wholesale (COST) Tops Q1 EPS by 5c; Comps Up 1%, 2% Ex-Gas
- After-Hours Stock Movers 12/07: (VYGR) (LULU) (HRB( Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get daily under-the-radar research with StreetInsider.com's Stealth Growth Insider Get your 2-Wk Free Trial here.
Jefferies upgraded the Information Technology sector from Market Weight to Overweight following a strong earnings season.
Strategist Steven DeSanctis highlighted:
- The second quarter reporting season was solid for the sector with nearly five times as many earnings beats than misses.
- Even though overall valuations are stretched, the group looks reasonable with four of the six measures we track trading below their long-term averages.
- The revision ratio remains strong with more upward revisions than downward and 2016's earnings and sales estimates seem awfully low so we can expect to see lots of beats going forward.
- If the Fed finally raises rates in December, this group will benefit.
- M&A activity is running at a record pace in small caps and over 30% of all deals are occurring in this sector. We think this trend continues.
Technology Select Sector Spdr Fund (NYSE: XLK)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs Sees 27% Upside in MercadoLibre (MELI) and Raises Rating to 'Buy'
- Newell Brands (NWL): Cutting PT - Jefferies
- Wedbush Raises Price Target on Francesca's (FRAN) Following 3Q Report
Create E-mail Alert Related CategoriesAnalyst Comments, ETFs, Upgrades
Related EntitiesJefferies & Co, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!