Back to top

Bull of the Day

WebMD Health Corporation (WBMD - Snapshot Report) has a famous web site and triple digit earnings growth to go along with it. This Zacks Rank #1 (Strong Buy) is expected to grow earnings by 205% in 2013.

WebMD Health provides health information to consumers, physicians, healthcare professionals, employers and health plans through both public and private online portals and mobile platforms.

Its websites include WebMD Health, Medscape, MedicineNet, eMedicineHealth, RxList, theheart.org, and Medscape Education.

Reaffirmed Full Year Guidance in July

In July, when it reported second quarter results, WebMD reaffirmed its full year 2013 guidance. Full year revenue is expected to jump between 3% and 7% from 2012.

The company is also expected to be profitable in 2013 with net income of $3 million to $11 million versus a loss of $20.3 million in 2012.

Big Earnings Growth Ahead

2012 was tough for WebMD as earnings plunged compared with previous years.

But both 2013 and 2014 are looking up.

Earnings are expected to rebound 205% in 2013 to $0.22 and another 88% to $0.41 in 2014.

In the price and consensus chart, you can see the earnings plunge but then start to recover in 2013.

1 estimate has been revised higher for both 2013 and 2014 in just the last week.

WebMD Health is expected to report third quarter results on Oct 29.

Shares Surged in 2013

As the turnaround in earnings became apparent, investors stepped in. Shares have doubled in 2013.

The stock isn't cheap, as it trades with a forward P/E of 134. But, investors are trading value for growth. That tradeoff has paid off, so far, in 2013 as the shares have soared.

For investors looking for a play on the Internet and healthcare, WebMD Health is one they should keep on their radar.

Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>

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

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
UTD THERAPE… UTHR 117.83 +28.51%
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
BANCO DO BR… BDORY 15.53 +3.95%