On Nov 13, 2013, Zacks Investment Research upgraded
SINA Corp. (
to a Zacks Rank #1 (Strong Buy). With a strong return of 61.3%
over the past one year and a positive estimate revision trend,
SINA is an attractive investment opportunity.
Why the Upgrade?
Upbeat third quarter results and strength in Weibo contributed to
the upgrade. Weibo's daily active user (DAU) base increased 11.2%
to 60.2 million from the month of June to September. This was
much better than 8.2% growth reported during the March-June
SINA reported third quarter earnings of 35 cents per share that
were well ahead of the Zacks Consensus Estimate of 17 cents and
the year-ago figure of 8 cents. SINA's partnership with the
Alibaba group contributed significantly to the company's overall
Revenues surged 21.2% year over year to $184.6 million and
exceeded the Zacks Consensus Estimate of $181.0 million. The
year-over-year growth in revenues was primarily driven by higher
revenues from online advertising and fee-based services.
Advertising revenues moved up 25.7% from the year-ago quarter to
SINA expects revenues for the fourth quarter of 2013 to be in the
range of $190.0 million and $194.0 million. Advertising revenues
are expected in the range of $160.0 million-$162.0 million, while
non-advertising revenues are projected in the range of $30.0
The Zacks Consensus Estimate for fiscal 2013 increased 33.3% to 8
cents per share as most of the estimates were revised higher over
the last 60 days. For fiscal 2014, the Zacks Consensus Estimate
increased 19.3% to $1.42 per share.
The long-term expected earnings growth rate for SINA is 22.5%.
Other Stocks to Consider:
Investors can also consider other stocks that are doing well
right now. These include
Qihoo 360 Technology (
Digital River (
. While Qihoo and Digital River carry a Zacks Rank #1 (Strong
Buy), Facebook carries a Zacks Rank #2 (Buy).
DIGITAL RIVER (DRIV): Free Stock Analysis
FACEBOOK INC-A (FB): Free Stock Analysis
QIHOO 360 TECH (QIHU): Free Stock Analysis
SINA CORP (SINA): Free Stock Analysis Report
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