Now's the time to take a look at
). This Zacks Rank #1 (Strong Buy) is positioned to win additional
business as post office services get pared back.
Stamps.com is one of the few "dot-com" companies left over from the
dot-com era. Founded in 1996, it provides online postage services
to about 465,000 registered customers. It targets small businesses,
who have historically used the Post Office's postal meters for
Stamps.com software, which is an approved partner of the US Postal
Service, allows businesses to print postage with just a PC, a
printer and an Internet connection.
A Record First Quarter
On Apr 24, Stamps.com reported record first quarter results as it
crushed the Zacks Consensus by 48.5%. Earnings were 49 cents
compared to the Zacks Consensus of 33 cents.
Revenue jumped 13% to $32.1 million with core PC postage revenue
rising 16% year over year. The company had its highest level of
total paid customers ever at 465,000. It also added the most ever
in one quarter, at 30,000.
After the record first quarter, Stamps.com raised its revenue and
EPS guidance ranges. The analysts followed suit as the 2013 Zacks
Consensus Estimate rose to $1.76 from $1.60 in the last month.
That is earnings growth of 19.9% compared to last year. Analysts
also see another 8% earnings growth in 2014.
Stamps.com is sitting in the driver's seat. With millions of small
businesses with shipping and mail needs, Stamps.com is well
positioned to pick up additional customers as the Post Office pares
back its services over the next several years.
Additionally, the next generation of business owners is more
comfortable with digital services, in general. The market for
online mail services is large.
At New Highs
With the stock market rally continuing, it's not surprising that
shares of Stamps.com are at new 2-year highs.
But valuations aren't excessive. It's trading with a forward P/E of
20.9. With the double digit earnings growth, it has a PEG ratio of
Stamps.com is one of those companies many investors have heard of,
and maybe even owned during the dot-com boom years, but have lost
track of. It's time to delve back into it.
For investors looking for a small cap with big growth, Stamps.com
is one to keep an eye on.
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STAMPS.COM INC (STMP): Free Stock Analysis
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