Shares of j2 Global, Inc. have declined 6.3% in a month, performing worse than the industry's decrease of 2.1%.
Reasons Behind the Price Plunge
The company recently reported fourth-quarter 2017 results with lower-than-expected earnings on higher costs.
The company’s growth-by-acquisition strategy increases costs pertaining to investments, hurting its bottom-line growth in turn. This downside is likely to continue in the near future too. Notably, operating expenses in the reported quarter rose 35.4% year over year.
j2 Global’s high debt levels are another cause for worry. The company exited the quarter under review with long-term debt of $1 billion compared with $601.75 million at the end of 2016. Further, the long-term debt-to-equity ratio (expressed as a percentage) stands at 98.2%, comparing unfavorably with the industry’s 1.4% and the S&P 500 index’s 82.9%.
The negativity revolving around the stock is evident from the Zacks Consensus Estimate for current-year earnings being revised 1.5% downward in the last 30 days.
The company’s Zacks Rank #5 (Strong Sell) further substantiates the pessimism surrounding it. Also, the stock has a Momentum Score of C, highlighting its short-term unattractiveness.
Key Picks
Some better-ranked stocks in the broader Computer and Technology sector are AMETEK, Inc. (AME - Free Report) , DST Systems, Inc. and Harris Corporation . While DST Systems sports a Zacks Rank #1 (Strong Buy), AMETEK and Harris carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of AMETEK, DST Systems and Harris have rallied more than 14%, 63% and 27%, respectively, in the last six months.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Shares of j2 Global, Inc. have declined 6.3% in a month, performing worse than the industry's decrease of 2.1%.
Reasons Behind the Price Plunge
The company recently reported fourth-quarter 2017 results with lower-than-expected earnings on higher costs.
The company’s growth-by-acquisition strategy increases costs pertaining to investments, hurting its bottom-line growth in turn. This downside is likely to continue in the near future too. Notably, operating expenses in the reported quarter rose 35.4% year over year.
j2 Global’s high debt levels are another cause for worry. The company exited the quarter under review with long-term debt of $1 billion compared with $601.75 million at the end of 2016. Further, the long-term debt-to-equity ratio (expressed as a percentage) stands at 98.2%, comparing unfavorably with the industry’s 1.4% and the S&P 500 index’s 82.9%.
The negativity revolving around the stock is evident from the Zacks Consensus Estimate for current-year earnings being revised 1.5% downward in the last 30 days.
The company’s Zacks Rank #5 (Strong Sell) further substantiates the pessimism surrounding it. Also, the stock has a Momentum Score of C, highlighting its short-term unattractiveness.
Key Picks
Some better-ranked stocks in the broader Computer and Technology sector are AMETEK, Inc. (AME - Free Report) , DST Systems, Inc. and Harris Corporation . While DST Systems sports a Zacks Rank #1 (Strong Buy), AMETEK and Harris carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of AMETEK, DST Systems and Harris have rallied more than 14%, 63% and 27%, respectively, in the last six months.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on AME - FREE