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VeriSign (VRSN) Gains 9.4% YTD: Will the Uptrend Continue?
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VeriSign (VRSN - Free Report) , a leading provider of Internet infrastructure services that include domain name registry services and infrastructure assurance services, is witnessing healthy momentum this year. The stock has gained 9.4% year to date. In the past year, shares were up 28.9% against the sub-industry’s decline of 6.3%.
The increase in share price is driven by rising demand for reliable infrastructure services. VRSN continues to expand its critical infrastructure to tap the growing demand for DNS navigation services in industries like commerce, education and healthcare.
Increases in growth in .com and .net domain name registrations are also aiding VeriSign’s performance. In the last reported quarter, the company registered 174.8 million .com and .net domain names.
Image Source: Zacks Investment Research
VRSN’s solid liquidity and cash-flow generation ability make it an attractive stock for investors. As of Mar 31, the company’s cash and cash equivalents (including marketable securities) were $1.02 billion. Cash flow from operating activities was $259 million in the first quarter, while free cash flow was $253 million.
Image Source: Zacks Investment Research
Also, VRSN’s share repurchase program is noteworthy. In the first quarter, Verisign repurchased 1.1 million shares for $220 million. As of Mar 31, the company had shares worth $639 million remaining under buyback authorization.
Management now expects 2023 revenues to be between $1.49 billion and $1.505 billion compared with the earlier guided range of $1.485-$1.505 billion. VRSN’s domain name base’s growth is now expected to be between 0.5% and 2.25% due to modest improvement in the registration trend.
Notably, VeriSign currently carries a Zacks Rank #2 (Buy).
Apart from a favorable rank, VRSN has a VGM Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities.
The Zacks Consensus Estimate for revenues for 2023 and 2024 has increased 2.7% and 4.5%, respectively, in the past 60 days reflecting analysts’ optimism regarding the company’s prospects.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 5.3%. Shares of BMI have gained 75.1% in the past year.
The consensus estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 3.5% in the past year.
The consensus mark for Blackbaud’s 2023 earnings is pegged at $3.75 per share, up 9.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have increased 13.4% in the past year.
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VeriSign (VRSN) Gains 9.4% YTD: Will the Uptrend Continue?
VeriSign (VRSN - Free Report) , a leading provider of Internet infrastructure services that include domain name registry services and infrastructure assurance services, is witnessing healthy momentum this year. The stock has gained 9.4% year to date. In the past year, shares were up 28.9% against the sub-industry’s decline of 6.3%.
The increase in share price is driven by rising demand for reliable infrastructure services. VRSN continues to expand its critical infrastructure to tap the growing demand for DNS navigation services in industries like commerce, education and healthcare.
Increases in growth in .com and .net domain name registrations are also aiding VeriSign’s performance. In the last reported quarter, the company registered 174.8 million .com and .net domain names.
Image Source: Zacks Investment Research
VRSN’s solid liquidity and cash-flow generation ability make it an attractive stock for investors. As of Mar 31, the company’s cash and cash equivalents (including marketable securities) were $1.02 billion. Cash flow from operating activities was $259 million in the first quarter, while free cash flow was $253 million.
Image Source: Zacks Investment Research
Also, VRSN’s share repurchase program is noteworthy. In the first quarter, Verisign repurchased 1.1 million shares for $220 million. As of Mar 31, the company had shares worth $639 million remaining under buyback authorization.
Management now expects 2023 revenues to be between $1.49 billion and $1.505 billion compared with the earlier guided range of $1.485-$1.505 billion. VRSN’s domain name base’s growth is now expected to be between 0.5% and 2.25% due to modest improvement in the registration trend.
Notably, VeriSign currently carries a Zacks Rank #2 (Buy).
Apart from a favorable rank, VRSN has a VGM Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a VGM Score of A or B offer solid investment opportunities.
The Zacks Consensus Estimate for revenues for 2023 and 2024 has increased 2.7% and 4.5%, respectively, in the past 60 days reflecting analysts’ optimism regarding the company’s prospects.
Other Stocks to Consider
Some other top-ranked stocks in the broader technology space are Badger Meter (BMI - Free Report) , Simulations Plus (SLP - Free Report) and Blackbaud (BLKB - Free Report) , each carrying a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
BMI’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 5.3%. Shares of BMI have gained 75.1% in the past year.
The consensus estimate for Simulations Plus’ fiscal 2023 earnings has improved by 1 cent in the past 60 days to 66 cents per share. Shares of SLP have lost 3.5% in the past year.
The consensus mark for Blackbaud’s 2023 earnings is pegged at $3.75 per share, up 9.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 10.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have increased 13.4% in the past year.