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

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!