Three Stocks For The Changing Technology Landscape (LNKD, SSTK, VPRT)
It should be no surprise that when the analysts at Cantor Fitzgerald released their recommendations for stocks to buy to take advantage of the changing landscape in technology, it included such giants as Amazon.com (NASDAQ: AMZN), Facebook (NASDAQ: FB), Google (NASDAQ: GOOG) and Yahoo! (NASDAQ: YHOO).
However, the Cantor Fitzgerald team also favored LinkedIn (NYSE: LNKD), Shutterstock (NYSE: SSTK) and Vistaprint (NASDAQ: VPRT), which are leaders as well in their respective niches. Below we take a look at how these three stocks have fared and what analysts in general expect from them.
This online professional network operator this week challenged NSA disclosure rules in a court filing. The Mountain View, California-based company sports a market capitalization of about $28 billion but does not offer a dividend. Its long-term earnings per share (EPS) growth forecast is almost 60 percent.
Note that the number of shares sold short in LinkedIn represented more than three percent of the float as of the August 30 settlement date, though that was the lowest level of short interest in the past year. It was also the lowest average daily share volume year-to-date. The days to cover was about two.
The consensus recommendation of the analysts surveyed by Thomson/First Call who follow the stock is to buy shares. However, their mean price target, or where the analysts think the share price will go, is less than the current share price. Even Cantor Fitzgerald sees only marginal potential upside.
The share price has retreated about five percent from a recent multiyear high. It is more than 121 percent higher year-to-date. Over the past six months, the stock has underperformed Facebook but outperformed Monster Worldwide (NYSE: MWW) and the broader markets.
This online marketplace for commercial digital imagery recently opened its first international office in London. The New York-based company has a market cap of about $2 billion. Its long-term EPS growth forecast is more than 20 percent, and the return on equity is about 111 percent.
The short interest in Shutterstock was more than nine percent of the float at the end of August. The number of shares sold short shrank more than seven percent from a month earlier. However, the days to cover jumped from less than seven in the previous period to about 11.
Of the seven analysts surveyed, two rated the stock at Strong Buy and another two also recommend buying shares. The analysts' mean price target indicates that they see less than three percent potential upside. Shares were trading higher than that consensus target earlier this week.
The share price is more than 124 percent higher than at the beginning of the year. It also is above the 200-day and 50-day moving averages. Over the past six months, Shutterstock has outperformed the S&P 500.
This online provider of marketing products and services is two years into a five-year plan to boost its earnings and sales growth. Vistaprint is headquartered in the Netherlands and it has a market cap of less than $2 billion. Its long-term EPS growth forecast is more than 21 percent.
After declining in each period since the middle of May, the number of shares sold short as of the most recent settlement date still represented more than 19 percent of the total float. That was the lowest level of short interest in at least a year. But note that the days to cover was more than 31.
The consensus recommendation of the polled analysts is to hold shares, and it has been for at least three months. The analysts' mean price target is about six percent higher than the current share price. Cantor Fitzgerald's target, the highest listed, signals more than nine percent potential upside.
Vistaprint shares are trading more than 57 percent higher year to date, though they have faced resistance near $56 for the past six weeks. The stock has not only outperformed the broader markets over the past six months, but the likes of Office Depot (NYSE: ODP) and Shutterfly (NASDAQ: SFLY) as well.
At the time of this writing, the author had no position in the mentioned equities.
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