3 Predictions for Next Week: SodaStream International Ltd (SODA) and More

2.The Nasdaq Composite will beat the Dow this week
Tech has been a big winner in recent years, so betting on tech over stodgy blue chips has been a good bet for me more often than not. I’m going to stick with this pick. Most of the names in the composite are just too cheap at this point, and the results this earnings season haven’t been as bad as some worrywarts had feared.

The market is ripe for the tech-stacked secondary stocks to continue to outpace the 30 megacaps that make up the Dow Jones Industrial Average.

3. Michael Kors will beat Wall Street’s earnings estimates
Some stocks are just flat-out better than others.

Yandex NV (NASDAQ:YNDX) is the company behind the leading search engine in Russia. It isn’t a household name here, but it’s a juggernaut in Eastern Europe.

As the world migrates online, search engines provide the richest opportunity for investors to cash in on the revolution. People visit a search site because they want to go somewhere else, and that’s a dinner bell for advertisers who pay up for those leads.

Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a profit of 8.66 Russian rubles a share in its latest quarter, I’ll whip out a “greater than” sign. History’s on my side!

One of my best tricks to beating the market is finding stocks that perpetually land ahead of the prognosticators. Let’s go over the past year of earnings reports.

Quarter	EPS Estimate	EPS	Surprise
Q4 2011	5.63	6.44	14%
Q1 2012	4.35	4.40	1%
Q2 2012	5.45	6.15	13%
Q3 2012	6.16	6.64	8%

Source: Thomson Reuters.

Things can change, of course. Three search engines are globally more popular than Yandex, and they’ve all posted mixed quarterly results this earnings season. There’s also the possibility that consumers will tire of trusting the ads on search engines and stop clicking on them.

However, there are no signs that Yandex will slip this particular quarter. The average profit target has even inched higher over the past week. Everything seems to be falling into place for another market-thumping quarter on the bottom line.

Three for the road
Well, there are three predictions right there. Let’s see how I fare this week.

The article 3 Predictions for Next Week originally appeared on Fool.com and is written by Rick Aristotle Munarriz.

Longtime Fool contributor Rick Aristotle Munarriz owns shares of SodaStream. The Motley Fool recommends Apple, SodaStream, and Yandex and owns shares of Apple and SodaStream.

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