Company Performance - OneSpan (OSPN) closed at $19.59, reflecting a +1.4% increase from the previous day, outperforming the S&P 500's daily gain of 0.53% [1] - Over the past month, OneSpan's shares have appreciated by 4.21%, contrasting with the Computer and Technology sector's decline of 0.75% and the S&P 500's gain of 1.24% [1] Upcoming Earnings - OneSpan is scheduled to release its earnings report on February 27, 2025, with an expected EPS of $0.27, indicating a 42.11% increase from the same quarter last year [2] Analyst Estimates - Recent modifications to analyst estimates for OneSpan are crucial as they reflect changing business trends, with positive revisions indicating analysts' confidence in the company's performance [3] Zacks Rank and Valuation - OneSpan currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the past month [5] - The company is trading at a Forward P/E ratio of 13.05, which is a discount compared to the industry's average Forward P/E of 30.73 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 47, placing it in the top 19% of over 250 industries [6] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [7]

Stock Performance - OneSpan closed at $19 09, up 0 9% from the previous session, outperforming the S&P 500's 0 61% gain [1] - Over the past month, OneSpan shares gained 2 88%, surpassing the Computer and Technology sector's 1 24% and the S&P 500's 2 08% gains [1] Earnings and Estimates - OneSpan's upcoming earnings report is scheduled for February 27, 2025, with projected EPS of $0 27, a 42 11% increase from the same quarter last year [2] - Recent upward revisions in analyst estimates reflect positivity towards the company's business operations and profit generation [3] - The Zacks Consensus EPS estimate for OneSpan has remained steady over the past month [5] Valuation and Industry Ranking - OneSpan is trading at a Forward P/E ratio of 12 78, a discount compared to the industry average of 29 01 [6] - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 41, placing it in the top 17% of over 250 industries [6] - The Zacks Industry Rank shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7] Zacks Rank System - OneSpan currently has a Zacks Rank of 3 (Hold) [5] - The Zacks Rank system, ranging from 1 (Strong Buy) to 5 (Strong Sell), has a strong track record, with 1 ranked stocks yielding an average annual return of +25% since 1988 [5]

Company Performance - OneSpan (OSPN) closed at $19.07, reflecting a -0.47% change from the previous day, underperforming the S&P 500's loss of 0.21% [1] - The stock has increased by 6.33% over the past month, contrasting with the Computer and Technology sector's decline of 2.15% and the S&P 500's loss of 1.56% [1] Earnings Expectations - OneSpan is scheduled to announce its earnings on February 27, 2025, with an expected EPS of $0.27, representing a 42.11% increase from the same quarter last year [2] Analyst Estimates - Recent changes in analyst estimates for OneSpan are crucial as they indicate shifts in near-term business trends, with positive revisions suggesting optimism about the company's profitability [3] Zacks Rank and Valuation - OneSpan currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] - The company is trading at a Forward P/E ratio of 12.95, which is a discount compared to the industry's average Forward P/E of 28.24 [6] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 33, placing it in the top 14% of over 250 industries [6] - The strength of industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Company Overview - OneSpan Inc. is a technology company with a market capitalization of $715 million, specializing in digital security solutions [1] - The company's product offerings include cloud authentication, mobile application security, electronic signatures, and other digital agreement authentication products [1] Industry Focus - OneSpan operates within the digital security sector, which is increasingly important as businesses and consumers seek secure online transactions and communications [1] - The company's strong credibility in the digital security space positions it well to capitalize on growing market demands for secure digital solutions [1]

Group 1 - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a consensus between Strong Buy and Buy, with 60% of the recommendations being Strong Buy from five brokerage firms [2][4] - The reliability of brokerage recommendations is questioned, as studies suggest they have little success in guiding investors towards stocks with significant price appreciation potential [4][5] - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a higher number of favorable ratings compared to negative ones [5][9] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more effective indicator of near-term stock performance compared to ABR [7][10] - The Zacks Rank is updated more frequently than ABR, as it reflects real-time changes in earnings estimates, providing timely predictions for future stock prices [11] - OneSpan's Zacks Consensus Estimate for the current year remains unchanged at $1.34, suggesting that analysts have steady views on the company's earnings prospects, which may lead to performance in line with the broader market [12][13]

Company Performance - OneSpan (OSPN) shares have increased by 7.7% over the past month and reached a new 52-week high of $19.09, with a year-to-date gain of 74.4% compared to 33% for the Zacks Computer and Technology sector and 39.6% for the Zacks Internet - Software industry [1] - The company has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters, reporting EPS of $0.33 against a consensus estimate of $0.21 in its latest earnings report on October 30, 2024 [2] Valuation Metrics - OneSpan currently has a Value Score of D, with Growth and Momentum Scores of A and B respectively, resulting in a VGM Score of B [5] - The stock trades at 14X current fiscal year EPS estimates, below the peer industry average of 34.7X, and at 5X trailing cash flow compared to the peer group's average of 28.5X [5] Zacks Rank - OneSpan holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [6] Industry Comparison - The Internet - Software industry is in the top 14% of all industries, indicating favorable conditions for both OneSpan and its peer AppFolio, Inc. (APPF) [9] - AppFolio has a Zacks Rank of 2 (Buy) and reported a 27.45% earnings beat, with expected earnings of $5.66 per share on revenue of $790.55 million for the current fiscal year [7][8]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with OneSpan (OSPN) currently holding a Momentum Style Score of B [2] - Style Scores complement the Zacks Rank system, which has a strong track record of outperforming the market; OSPN has a Zacks Rank of 1 (Strong Buy) [3] Group 2: OneSpan's Performance Metrics - OSPN shares have increased by 6.94% over the past week, outperforming the Zacks Internet - Software industry, which rose by 5.38% [6] - Over the last quarter, OSPN shares rose by 10.92%, and over the past year, they increased by 75.47%, while the S&P 500 only moved 7.42% and 32.55%, respectively [7] - The average 20-day trading volume for OSPN is 460,511 shares, indicating a bullish sign if the stock is rising with above-average volume [8] Group 3: Earnings Outlook - Recent earnings estimate revisions for OSPN show one upward revision and no downward revisions, increasing the consensus estimate from $1.16 to $1.34 over the past 60 days [10] - For the next fiscal year, there has been one upward estimate revision with no downward changes, indicating positive earnings outlook [10] - Given these factors, OSPN is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a potential pick for near-term gains [11]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on OneSpan (OSPN), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][4]. Group 1: Brokerage Recommendations - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a rating between Strong Buy and Buy, based on recommendations from five brokerage firms [2]. - Out of the five recommendations, three are classified as Strong Buy, accounting for 60% of the total recommendations [2]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric, as studies show limited success of brokerage recommendations in predicting stock price increases [4]. Group 2: Analyst Bias and Tools - Analysts from brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a higher number of Strong Buy recommendations compared to Strong Sell recommendations [5][9]. - The Zacks Rank, a proprietary stock rating tool, is presented as a more reliable indicator of near-term price performance, based on earnings estimate revisions [7][10]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not always be up-to-date [8][11]. Group 3: Earnings Estimates and Investment Potential - The Zacks Consensus Estimate for OneSpan has increased by 18.1% over the past month, reaching $1.34, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - The significant change in the consensus estimate, along with other factors, has resulted in a Zacks Rank of 1 (Strong Buy) for OneSpan, suggesting potential for stock appreciation [13].

Shares of OneSpan (OSPN) have been strong performers lately, with the stock up 11% over the past month. The stock hit a new 52-week high of $17.76 in the previous session. OneSpan has gained 62.5% since the start of the year compared to the 31.4% move for the Zacks Computer and Technology sector and the 30.9% return for the Zacks Internet - Software industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...