A Big Upgrade for Omniture

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Every day, the sun rises on Wall Street, and a plethora of professional analysts wake to issue new opinions on stocks. Here at the Fool, we use our "This Just In" column to examine some of these picks -- and the track records of the firms behind them -- so individuals can make better investing decisions.

In addition to following professional banks, anyone can use Motley Fool CAPS to monitor the collective opinions of more than 105,000 investors, many of whom demonstrate better investing insight than published analysts do.

Enough top-performing CAPS investors have recently turned bullish on Motley Fool Stock Advisor recommendation Omniture (Nasdaq: OMTR) to upgrade it from a four-star rank to a tip-top five stars. More than 1,350 players have weighed in with an opinion on Omniture, with many of them offering analysis and commentary on the recent boost in optimism.  

Omniture already has a rock-solid customer list, counting top companies such as Oracle (Nasdaq: ORCL), Hewlett-Packard (NYSE: HPQ), Wal-Mart (NYSE: WMT), and Microsoft (Nasdaq: MSFT) as patrons of its analytics tools. But recent wins, such as the deal struck with China's leading search engine, Baidu.com (Nasdaq: BIDU), have helped Omniture diversify internationally to further cement its top standing in online business optimization software.

Omniture's dominance hasn't gone unnoticed -- even Fidelity Aggressive Growth Fund (FDEGX) manager Steve Calhoun made it one of his top five holdings. Though Omniture has consistently shown red ink on the bottom line, revenue is soaring, with 117% top-line growth in the most recent quarter. And the losses largely stem from acquisition costs and expenses. Factoring out these and other charges, Omniture actually expects to report non-GAAP net income of $0.10 to $0.11 per share in the coming quarter.

Despite a crowded field of Web optimization companies that are rapidly consolidating, CAPS investors in general hold Omniture above the crowd. The vast majority believe this leading position will translate into profits, with 97% of the 1,356 investors rating the company believing it will outperform the market in the future.

To see what the very best CAPS analysts are saying now about Omniture -- as well as other winning stocks they are picking -- head on over to CAPS and have a look. The community research and resources in CAPS are totally free, unlike analyst opinions reserved for paying clients.

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Omniture has jumped 121% since the Motley Fool Stock Advisor service recommended it in December 2006. To see all of the stocks that have helped Tom and David Gardner beat the market by 44 points on average, take a free 30-day trial of the investing newsletter.

Fool contributor Dave Mock once earned a first-class seat upgrade after wine was spilled on him. He owns no shares of companies mentioned here and is the author of The Qualcomm Equation. Wal-Mart and Microsoft are Inside Value selections. Baidu.com is a Rule Breakers pick. Omniture is a Stock Advisor recommendation. The Fool has a disclosure policy.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 29, 2008, at 5:29 PM, JacobeanEra wrote:

    Great article, OMTR is a superb growth story. And at these prices..wow. Its still relatively young having IPO'd a couple of years ago.

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