(TTGT - Snapshot Report
) recently announced substantial growth and is currently a Zacks #1 Rank (Strong Buy). Share have been battered, but now could be the right time to jump into TTGT.
TechTarget, Inc is a technology media company with over 100 websites and 10 million members, bringing buyers and sellers of corporate IT products together.
On Aug 8 TechTarget said it has been able to "grow substantially faster than the market" when it announced second quarter results. Revenues rose 12% $28.1 million.
Earnings worked out to $0.07 per share, which is what analysts were expecting. With over $54 million in cash and no long-term debt TechTarget is in great shape.
TechTarget left its annual guidance unchanged and analysts made some slight upward estimate revisions. While the forecasts for the next 2 quarters are up a penny each, the full-year Zacks Consensus Estimate for 2011 is unchanged at $0.23. Next year's average projection is up a cent to $0.28.
Compare these levels to the $0.04 that was earned last year and you get growth rates of 485% and 20%, respectively. Shares of TTGT are going for about 26 times estimates, but with a 21% long-term growth rate the PEG is 1.3.
Shares of TTGT were all over the place right after the earnings release, but have stabilized since then. So, now is not a bad time to get into this Zacks #1 Rank (Strong Buy).
Bill Wilton is the Aggressive Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Small Cap Trader service