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Can Demand Media (DMD) Run Higher on Strong Earnings Estimate Revisions?

Demand Media, Inc.DMD , a diversified media and technology company, could be an interesting play for investors. That is because, not only does the stock have decent short-term momentum, but it is seeing solid activity on the earnings estimate revision front as well.

These positive earnings estimate revisions suggest that analysts are becoming more optimistic on DMD's earnings for the coming quarter and year. In fact, consensus estimates have moved sharply higher for both of these time frames over the past four weeks, suggesting that Demand Media could be a solid choice for investors.

Current Quarter Estimates for DMD

In the past 30 days, 1 estimate have gone higher for Demand Media while 0 have gone lower in the same time period. The trend has been pretty favorable too, with estimates narrowing down from a loss of 41 cents a share 30 days ago, to a loss of 34 cents today, a move of nearly 17.1%.

Current Year Estimates for DMD

Meanwhile, Demand Media's current year figures are also looking quite promising, with 1 estimate moving higher in the past month, compared to 0 lower. The consensus estimate trend has also seen a boost for this time frame, narrowing down from a loss of $1.59 per share 30 days ago to a loss of $1.21 per share today, an increase of 23.9%.

Bottom Line

The stock has also started to move higher lately, adding 20.7% over the past four weeks, suggesting that investors are starting to take note of this impressive story. So investors may definitely want to consider this Zacks Rank #2 (Buy) stock to profit in the near future.

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DEMAND MEDIA (DMD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.