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Ancestry.com, Inc. (ACOM)

Ancestry.com, Inc. (ACOM) operates the world’s largest online family history database. With over 10 billion records, the company’s archives include ship passenger lists, birth and death records and U.S. Census information. A growing collection of user- generated data has boosted content. Ancestry.com had 1.87 million subscribers on March 31, up...

Ancestry.com, Inc. (ACOM) operates the world’s largest online family history database. With over 10 billion records, the company’s archives include ship passenger lists, birth and death records and U.S. Census information. A growing collection of user- generated data has boosted content. Ancestry.com had 1.87 million subscribers on March 31, up 16% from a year earlier and nearly double the level of just three years ago.

“Lower customer turnover and steady subscriber gains, fueled partly by product launches and database enhancements, should drive earnings growth. In May, the company launched a genetic test that is linked to a global database of DNA samples. For full-year 2012, Wall Street expects per-share earnings to increase 22% on 16% revenue growth. Over the next five years, per-share profits are expected to increase at an 18% annualized rate. Ancestry.com, with a Quadrix Overall score of 98, is being initiated as a Buy.”

Richard J. Moroney, CFA, Upside, July 7, 2012

Richard Moroney, CFA, is the Editor and Vice President of the Dow Theory Forecasts and Upside investment newsletters. He holds a BS in journalism and economics from Northwestern University, and an MBA in finance/accounting from University of Chicago. He joined the company in 1989 and received the Chartered Financial Analyst designation in 1992.