Facebook Inc (NASDAQ:FB) might be a victim of its own hashtag culture. #deletefacebook has dealt a huge blow to the social media giant, following the Cambridge Analytica controversy. Shares of the company, which has lost about $50 billion of its market value in a week’s time, have plunged more than 10%.
Adding to the woes, Mozilla has announced that it is suspending its advertisements on Facebook with high chances for many others to follow in its footsteps. Further, Bank of America Corp (NYSE:BAC) contracted its price target from $265 to $230 for the Facebook stock.
Consequently, several other tech majors witnessed an unfavorable show on the bourses this week.
Is This Indicative of a Tech Backlash?
Regulatory hurdles are bulking up for the U.S. Tech sector that might act against the concentrated power and influence its key players.
Reports suggest that rising digital protectionism from the European Union, China, Brazil and India can clamp down the monopolistic positions of the tech big shots, reducing their profits. This would further impinge their customer base and earnings prospects.
Adding to the woes, Donald Trump’s stance on Silicon Valley has been unfavorable since he came to power.
His right-conservative policies have always been fundamentally focused on the manufacturing sector. This is a conscious attempt to get rid of the income inequalities created by the growth of tech companies.
From an investor’s point of view, to play it safe at the moment, it makes good sense to look for stocks from other sectors, which have solid growth prospects and are completely free from these riddles.
Rely on Big Data Stocks, But From Other Sectors!
Big data is the core of the world’s most important industries.
Per a report by the Research and Markets, the global big-data market will witness a CAGR of 10% between 2017 and 2020, to reach a worth of $76 billion by 2020. Per Grand View Research, the market is expected to reach $123.2 billion by 2025.
While all the major sectors are trying to utilize their resources to come up with the best in the burgeoning Big-Data trend, here we have zeroed in on three major sectors that are making the most of it. From each of these sectors, we have selected the finest companies based on their Big-Data portfolio strength and strong Zacks Rank.
Notably, we expect these companies to remain completely unhindered from the latest tech clout in the United States.
Big Data Stocks to Brave Facebook-Triggered Tech Backlash: General Motors Company (GM)
The perfect mix of Big data, Artificial Intelligence and machine learning is the key enabler of the latest driver-less technology in the Auto sector.
With smart sensors, embedded connectivity applications and big data-enhanced geo-analytical capabilities, the Auto sector is expending millions of dollars on Big-Data & AI infusion in automobiles.
Of the major companies in the space, General Motors Company (NYSE:GM) deserves special mention. The company is consistently focusing on the development of self-driving vehicles with the help of big-data and AI. Notably, General Motors has a Zacks Rank #1 and a long-term expected earnings growth of 8.4%.
The company also recently announced its plans to invest $100 million to upgrade its two plants in Michigan, which will manufacture its autonomous model Cruise AV that is expected to hit the market in 2019. General Motors’ capital allocation strategy, investments in plants in the United States and emerging markets, product launches and focus on technology development are expected to benefit the company.
Meanwhile, the company’s recent earnings estimates have been upbeat. The current year has seen eight estimates go higher in the past 60 days compared with no movement in the opposite direction. Consequently, the Zacks Consensus Estimate for 2018 has increased 7.4% to $6.25 in a year’s time.
General Motors Company Price and Consensus
Be it fraud detection, compliance and regulatory requirements, customer segmentation or risk management, the usage of Big Data in the U.S. banking industry has been far-reaching in the last couple of years.
In fact, most banking, financial services, and insurance organizations have been consistently trying to adopt a fully data-driven approach to enhance customer services. Thus, like most other industries, Big-Data analytics have been a critical game changer for the banking sector as well.
SunTrust Banks, Inc. (NYSE:STI) is a leading player in the U.S. banking sector. Notably, SunTrust Banks has a Zacks Rank #2 (Buy) and a long-term expected earnings growth of 12.5%.
Recently, SunTrust Bank developed a machine learning tool to review and categorize consumer complaints. Capable of analyzing unstructured data — phrases and word patterns — the tool drastically improved the efficiency of a traditionally manual evaluation process. The company’s data innovation team was honored with a Creative Innovation Award for the work at the Technology Association of Georgia (TAG) Data Science & Analytics Awards.
Meanwhile, the company’s recent earnings estimates have been favorable. The current year has seen eight estimates go higher in the past 60 days compared with no movement in the opposite direction. Consequently, the Zacks Consensus Estimate for 2018 has increased 5% to $5.03 in a year’s time.
SunTrust Banks, Inc. Price and Consensus
Apart from GoogleFlu and HealthMap, the latest trend of Electronic Health Records, Electronic Medical Records and revenue cycle management services in U.S. MedTech has been gaining prominence in Big Data healthcare applications.
Of the major companies in the space, athenahealth Inc (NASDAQ:ATHN) has been hogging the limelight through its cloud-based Big Data network — athenaNet. Notably, athenahealth has a Zacks Rank #1 (Strong Buy) and a long-term expected earnings growth rate of 21.5%.
By the end of the fourth quarter of 2017, athenahealth launched its first machine-learning model to automate faxes. The company also piloted services like authorization management, which has been planned to expand within the company’s client base throughout 2018. athenaClinicals is the company’s first economically sustainable, Big Data-based electronic medical records system.
The company’s recent earnings estimates have been promising. The current year has seen 18 estimates go higher in the past 60 days, and one lower. Consequently, the Zacks Consensus Estimate for 2018 has increased 29.8% to $3.79 in a year’s time.
athenahealth, Inc. Price and Consensus
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.