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Intersections, Inc. is cashing in on the growing awareness surrounding identity theft as it's expected to grow earnings by the double digits in 2012. This Zacks #1 Rank (Strong Buy) has value with a price-to-sales ratio of only 0.8.

Intersections provides consumer and corporate identity services. It services more than 9.1 million consumers using its IDENTITY GUARD brand.

Record First Quarter

On May 10, Intersections reported first quarter results which surprised on the Zacks Consensus Estimate by 27%. Earnings were a record 33 cents compared to the consensus of 26 cents. It made 23 cents a year ago.

Revenue was $90.2 million compared to $90.4 million in the prior year's quarter. Total subscribers were 4.8 million down from 4.9 million as of Dec 31, 2011.

Juicy Dividend

As of Mar 31, 2012 it had a cash balance of $30.6 million, $10 million still outstanding on its revolving credit facility and $15 million available under the facility.

The company has been spreading the wealth through its dividend, which is currently yielding a hefty 5%.

Cautious Outlook

The company spoke of "headwinds" due to the current regulatory climate in the banking industry but has been able to manage costs to continue delivering growth.

1 analyst recently revised the 2012 estimate lower, which caused the 2012 Zacks Consensus to fall to $1.07 from $1.14.

But that is still 2012 earnings growth of 11%.

Valuation Is Attractive

Shares have jumped in recent weeks but have not yet regained 2-year highs.

Despite the recent rally, Intersections still has several value characteristics.

In addition to a P/S ratio under 1.0, which usually indicates a company is undervalued, Intersections has a forward P/E of 14.8. That is just under the 15x cut-off I use for value.

The company also has a price-to-book ratio of 2.5. A P/B ratio under 3.0 can mean there is value.

To top it off, Intersections has other solid fundamentals including a 1-year return on equity (ROE) of 18.9%.

Intersections is a value stock that rewards shareholders through a nice dividend. It is scheduled to report second quarter results on Aug 7.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor of the Turnaround Trader and Insider Trader services. You can follow her on twitter at @TraceyRyniec.

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