For Immediate Release
Chicago, IL – December 20, 2022 – Today, Zacks Investment Ideas feature highlights Tencent Music Entertainment Group TME, MongoDB MDB and DocuSign DOCU.
3 Stocks Not Cooling Down in December
Stocks have struggled to gain traction during December, with a hawkish Federal Reserve weighing heavily on sentiment.
Still, several stocks have snapped the overall bearish trend and are looking to carry that strength through the upcoming holiday weekend.
Three stocks – Tencent Music Entertainment Group, MongoDB and DocuSign– have all been notably strong in December, providing investors with considerable gains.
It’s been a strong run for all three of these stocks in December, easily outperforming the S&P 500. Let’s take a closer look at each one.
DocuSign provides a fast, reliable way to electronically sign documents and agreements on practically any device from almost anywhere in the world.
The company has witnessed positive earnings estimate revisions as of late, helping land the stock into a Zacks Rank #2 (Buy).
Undoubtedly a positive, DocuSign has posted better-than-expected quarterly results as of late, exceeding earnings and revenue estimates in back-to-back quarters.
Just in its latest release, DOCU exceeded the Zacks Consensus EPS Estimate by nearly 40% and posted a 3.1% sales surprise.
MongoDB provides a developer data platform that offers services and tools necessary to build distributed applications at the performance and scale that users demand.
MDB’s near-term earnings outlook has shifted visibly bright over the last several months, pushing the stock into a Zacks Rank #2 (Buy).
Further, MDB carries a strong growth profile; earnings are forecasted to soar more than 150% in its current fiscal year (FY23) and a further 80% in FY24.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 44% in FY23 and 23% in FY24.
MongoDB has a stellar earnings track record; MDB has exceeded earnings and revenue estimates in ten consecutive quarters. Impressively, two of the company’s last three bottom line beats have been by triple-digit percentages.
Tencent Music Entertainment Group
Tencent Music Entertainment Group primarily provides an online music entertainment platform in China that offers online music, recording, and music-centric live-streaming services.
Like the stocks above, the company’s earnings outlook has recently turned positive, landing it into a favorable Zacks Rank #2 (Buy).
In addition, TME shares have been notably strong for some time now, up a remarkable 77% just over the last three months. Clearly, buyers have stepped up.
December has been a weak month for the market so far, with stocks failing to find traction following various economic data and a hawkish stance from the Fed.
Still, while the landscape has been dim in December, all three stocks above – Tencent Music Entertainment Group, MongoDB and DocuSign – have been notably strong, snapping the overall bearish trend.
In addition, all three have witnessed positive earnings estimate revisions as of late, indicating that their near-term business outlook is solid.
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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/performancefor information about the performance numbers displayed in this press release.
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