United Online, Inc. (UNTD), 1-800-FLOWERS.COM, Inc. (FLWS), and An Upcoming Spinoff That Smells of Roses

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Why it may be a steal
United Online, Inc. (NASDAQ:UNTD) currently trades at 10.2 times projected one-year earnings. If FTD’s pricing ends up similar, that will come as a sharp discount to 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), which trades at nearly 18 times forward earnings. Also to keep in mind, 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS)‘ growth is driven mainly by its gift baskets, not flowers. Average order value was under that of FTD’s this past quarter at $57.37 (compared to more than $60 for FTD). If FTD decides to put the pedal to the metal on its gift basket business, as its competitor has, we could see even greater growth numbers than currently projected.

Both 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) and FTD are slated to grow, but FTD may give investors a more appealing opportunity, with multiple correction coupled with earnings growth.

The article An Upcoming Spinoff That Smells of Roses originally appeared on Fool.com and is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool owns shares of United Online.

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