Liquidity Services Shares Popped: What You Need to Know

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Liquidity Services (Nasdaq: LQDT  ) surged 13% in early trading and remain up about that much as the closing bell approaches. Analysts at highly rated researcher Stifel Nicolaus initiated coverage of the stock with a buy rating.

So what: I don't have access to Stifel's note so I can't tell you what drove the rating, but it's a good bet that a new federal contract helped. On Monday, Liquidity Services announced an extension to its existing deal with the Department of Defense.

Now what: Much like eBay (Nasdaq: EBAY  ) for consumer goods, Liquidity Services processes and sells via auction excess scrap accumulated and declassified by the DoD. It's been a good business. Adjusted profits have improved by more than 19% annually over the past three years. Is that enough growth to support the stock's valuation? You tell me. Weigh in using the comments box below.

Interested in more info on Liquidity Services? Add it to your watchlist by clicking here.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Motley Fool newsletter services have recommended buying shares of Liquidity Services and eBay. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (1)

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.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1561101, ~/Articles/ArticleHandler.aspx, 10/24/2016 2:26:25 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,225.87 80.16 0.44%
S&P 500 2,150.32 9.16 0.43%
NASD 5,304.56 47.16 0.90%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/24/2016 2:08 PM
LQDT $9.40 Up +0.05 +0.53%
Liquidity Services CAPS Rating: ****
EBAY $29.24 Up +0.18 +0.62%
eBay CAPS Rating: ****