After spending much of the earlier part of the past year bouncing between a lowly two- and three-star rank, DG FastChannel
Shares of DG FastChannel were pounded following a weak sales outlook, but many CAPS members have adopted a contrarian stance and reiterated the long-term potential in the growing advertising delivery space.
To put the situation in perspective: The company delivered big revenue growth in the second quarter, reaching $60.3 million, making its sales forecast of $51 million to $53 million for the seasonally lower third-quarter look that much worse. A rebound in ad spending in last year's third quarter makes for some tough comparisons, too.
But similar to DG FastChannel's strong second-quarter sales, there have been other positive signs for the advertising industry. For instance, Comcast
DG FastChannel operates in an intensely competitive industry that's rapidly seeing more forms of media blend together. Companies like Akamai
The company is covering many bases; hooking up with Google TV Ads last year could be a smart move as the Internet giant tries to shake up advertising.
With an earnings multiple in the midteens and analysts estimating 25% annual growth over the next five years, it's not surprising many CAPS members are bullish on DG FastChannel.
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