Ellie Mae Inc (ELLI) and More: Four Early Movers On Friday … Are Any Presenting Value?

Page 1 of 2

Earnings and earning-related news is the number one catalyst for stock movement. A strong quarter can dictate the direction of a stock for the following three months as can a bad quarter; in the past I have written in detail about such subjects, a domino effect following a strong or bad quarter. Therefore, I am looking and assessing four of the top movers following earnings on Friday.

Modest Growth Finally Takes its Toll

IPG Photonics Corporation (NASDAQ:IPGP) is trading lower in early trading by almost 8% after reporting earnings. The company’s stock had been trading near 52-week highs after a 25% three-month return, but after posting revenue growth of just 17% year-over-year (yoy) it’s very possible that investors will reassess their position.

This is a tech stock that is trading with a price/sales of 6.5 and at 21.05 times next year’s earnings. The company has operating margins of 38%, therefore it doesn’t appear expensive to the naked eye. However, the problem is that margins are near maxed and top-line growth is slowing.

As a result, after a top and bottom line miss, I’d avoid the stock for now, and would not pay more than a 4.0 price/sales multiple on this stock due to slowing growth.

Ellie Mae Inc (NYSE:ELLI)

Ellie Continues to Exhibit Perfection on All Levels

Ellie Mae Inc (NYSE:ELLI) is trading higher by 12% after reporting earnings that blew past expectations. This is a company that grew its revenue by 60% yoy, issued guidance above the consensus, and saw a 10% rise in users of its loan origination software. The company’s software is growing rapidly yet trades with a price/sales of slightly below 6.0.

Keep in mind, IPG Photonics, the company above, grew by just 17% and trades with a similar valuation. As a result, I definitely think Ellie Mae is a great potential investment, a company with room to grow in a mortgage industry that appears to be on the rise.

A Quarterly Beat is Not Enough to Counter Weak Guidance

Technology company LogMeIn Inc (NASDAQ:LOGM) continues to add to its one-year decline following earnings. The stock is currently trading lower by more than 25% after beating earnings expectations, due to issuing weak guidance. This is a stock that simply can not fall fast enough, a company that has continued to lower its guidance and is now growing by less than 15% year-over-year.

Obviously, the stock is not nearly as expensive as it was last year, now trading at just 4.37 times sales, yet investors must wonder if growth is in the company’s future. After a one-year loss of more than 55%, I still think I’d avoid this stock.

Qlik Breaks Out With Strong Earnings/Guidance

Qlik Technologies Inc (NASDAQ:QLIK) is trading higher by over 18% after the company’s earnings beat on both the top and bottom line. The company saw revenue growth of 27% over last year, saw 40% growth in North America, and provided excellent guidance.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

The 5 Most Expensive Cars To Insure in the World

The 10 Most Common Genetically Modified Foods

10 Self-Made Billionaires Who Came From Nothing

The 10 Most Expensive Cities to Live in North America

The 13 Most Expensive Headphones in the World to Represent

The Top 20 Wealthiest Soccer Teams in 2014

4 BuzzWorthy Cannabis Stocks And Some Smoking Derivative Plays

The 10 Healthiest Fast Food Chains in America to Dine At

The 5 Most Expensive Cat Food Brands You Can Spoil Your Kitty With

The 6 Best eCommerce Platforms for Small Businesses

The 10 Worst Mistakes an Entrepreneur Can Make

The 5 Most OP Characters in League of Legends to Carry Games and Crush Foes With

The 5 Best Foods to Eat Before Running that Will Help You Pound the Pavement

10 Glaring Plot Holes in The Walking Dead that a Zombie-Filled Bus Could Drive Through

The 5 Biggest Celebrity Stoners Who Love Their Reefer

The 10 Most Overrated Movies Of All Time by Out-of-Touch Critics

Top 6 Least Expensive Cruise Destinations For 2015 that Will Take You to Paradise

10 States with Lowest Substance Abuse Rates in America

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

Top 6 Cities For The Ultra Rich to Live in Comfort

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

How to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!