Tibco Software Inc. (TIBX), Adobe Systems Incorporated (ADBE), Green Mountain Coffee Roasters Inc. (GMCR): Three Predictions for the New Week

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2.The Nasdaq Composite will beat the Dow Jones Industrial Average (INDEXDJX:^DJI) 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 tech should be what carries us through the economic recovery. The long-term outlook is still quite favorable.

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 (INDEXDJX:^DJI).

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

Adobe Systems Incorporated (NASDAQ:ADBE) is the leading player in desktop publishing software solutions. Anyone online has come across images made in Photoshop, PDF files made in Acrobat, and even a few Flash-powered videos (outside of the reluctant yet shrinking iOS market share of the tablet and smartphone markets).

Another thing it does is make analysts look like perpetual underachievers. If analysts say the company posted a profit of $0.34 a share in its latest quarter, I’ll argue that it held up better than that. 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
Q3 2012 $0.58 $0.58 0%
Q4 2012 $0.57 $0.61 7%
Q1 2013 $0.31 $0.35 13%
Q2 2013 $0.34 $0.36 6%

Source: Thomson Reuters.

Things can change, of course. This isn’t Adobe Systems Incorporated (NASDAQ:ADBE) at its finest hour. Analysts see revenue and earnings posting year-over-year declines when it reports on Tuesday. There’s an abundance of free or cheaper cloud-based solutions that perform some of the basic tasks that Adobe Systems Incorporated (NASDAQ:ADBE)’s high-end programs offer.

However, it’s hard to argue against the trend. 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 the New Week originally appeared on Fool.com is written by Rick Munarriz.

Longtime Fool contributor Rick Munarriz owns shares of Green Mountain Coffee Roasters. The Motley Fool recommends Adobe Systems, Green Mountain Coffee Roasters, lululemon athletica, and Tibco Software.

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