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| Company Name | Symbol | %Change |
|---|---|---|
| WESTELL TECH | WSTL | 7.69% |
| ALLIANCE FIB | AFOP | 4.26% |
| STEIN MART I | SMRT | 3.50% |
| A M R CP | AAMRQ | 3.24% |
| SYNAPTICS IN | SYNA | 2.92% |
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Company Description
Ancestry.com operates as an online resource for family history worldwide. The company was founded in 1983, changed its name from The Generations Network in 2009 and has a market cap of $1.47 billion.
Although ACOM has been trending higher since going public in Nov of 2009, shares got an extra boost on Oct 28 when the company reported strong Q3 results that handily beat expectations.
Third-Quarter Results
Revenue for the period was up 39% from last year to $79 million. Earnings also looked great, coming in at 24 cents, 26% ahead of the Zacks Consensus Estimate, where the company has an average earnings of 36% over the last four quarters.
The good quarter was driven by a sharp increase in subscribers, jumping 34% from last year to 1,377,000. Average revenue per subscriber was also on the upswing, climbing to $17.75 from $16.48 last year.
Financial Position
The company also has a great financial profile, with cash and equivalents of $80 million and no long-term debt.
Estimates
We saw some pretty decent movement in estimates off the good quarter, with the current year adding 11 cents to 76 cents and the next-year estimate gaining 19 cents to $1.05, a bullish 37% growth projection.
Valuation
But in spite of the gains. ACOM still has value, trading with a PEG (PE/Growth) ratio of .84%, safely below the traditional value benchmark of 1.
6-Month Chart
On the chart, ACOM recently spiked above some short-term resistance to hit a new all-time high at $34.93. Look for support from the long-term trend line on any weakness, take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the new Zacks Momentum Trader Service.