Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Bankrate Shares Boomed

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 online financial data publisher Bankrate (NYSE: RATE  ) soared 13% today after its quarterly results and outlook topped Wall Street expectations.  

So what: Bankrate shares have been crushed over the past year on weak lead generation, but a wide first-quarter beat -- adjusted EPS of $0.12 per share on revenue of $108.4 million versus the consensus of $0.09 and $102.6 million -- coupled with better-than-expected guidance suggests that things are starting to turn. Management cited rebounding credit card demand and improved insurance metrics for the upbeat report, suggesting that its turnaround initiatives -- mainly the transition to higher-quality lead model -- are steadily gaining traction.

Now what: Management expects full-year 2013 revenue to remain relatively flat compared to 2012, implying a top-line of about $457 million and ahead of Wall Street's view of $452.2 million. "We are maintaining our previous position on guidance and anticipate double-digit growth in the [second half of 2013], especially as the current momentum in insurance continues," President and CEO Thomas Evans said. With the stock now up about 30% over the past month alone and trading at a 20-plus forward P/E, however, I'd wait for some of the optimism to fade before buying into that turnaround talk.

Interested in more info Bankrate? Add it to your watchlist.

It's incredible to think just how much of our digital and technological lives are almost entirely shaped and molded by just a handful of companies. Find out "Who Will Win the War Between the 5 Biggest Tech Stocks?" in The Motley Fool's latest free report, which details the knock-down, drag-out battle being waged by the five kings of tech. Click here to keep reading.

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

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: 2400798, ~/Articles/ArticleHandler.aspx, 9/26/2016 1:45:46 AM

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 2 days ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

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

9/23/2016 4:02 PM
RATE $8.31 Up +0.04 +0.48%
Bankrate CAPS Rating: **