Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, online advertising company ValueClick (Nasdaq: VCLK ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at ValueClick's business and see what CAPS investors are saying about the stock right now.
ValueClick facts
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Headquarters (founded)
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Westlake Village, Calif. (1998)
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Market Cap
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$557.13 million
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Industry
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Internet software and services
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TTM Revenue
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$675.89 million
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Management
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CEO Tom Vadnais
CFO John Pitstick
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Return on Equity (average last three years)
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9.8%
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Competitors
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Google (Nasdaq: GOOG ) ,
Yahoo! (Nasdaq: YHOO )
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CAPS members bullish on VCLK also bullish on:
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Apple (Nasdaq: AAPL ) ,
Cisco Systems (Nasdaq: CSCO )
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CAPS members bearish on VCLK also bearish on:
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E*Trade Financial (Nasdaq: ETFC ) ,
Citigroup (NYSE: C )
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Sources: Capital IQ (a division of Standard & Poor's), and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, 571 of the 597 members who have rated ValueClick -- or 96% -- believe the stock will outperform the S&P 500. These Foolish bulls include MintCoin and JPresbrown.
Earlier this month, MintCoin listed a few of the stock's bullish points: "Growth, no debt, very nice cash flow, about 30% undervalued relative to the market. If the object is better returns than the S&P this one should do nicely."
In a pitch from last month, JPresbrown agreed, elaborating on ValueClick's solid financial position and attractive valuation (which is even cheaper today):
This is a rapidly growing company with a pristine balance sheet (no debt, over $1 a share in cash) and positive cash flow. Hammered by market because advertising is economically sensitive, but this is well-reflected in current bargain price (14 [times] earnings and 1.2 [times] sales). May be volatile, especially if market continues down in 4thQ, but should make a great entry point for in the long-term.
What do you think about ValueClick, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.
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