This tech company’s earnings estimates have risen $0.24 per share in the past 90 days. Buy on dips.
Neustar (NSR)
from AlphaProfit Sector Investors’ Newsletter
Divergence in economic data across regions, rise in geopolitical risk, and a surge in the dollar are casting doubts on the strength of the global and U. S. economy. In the coming weeks, investors will look for clues in the third quarter earnings reports and fourth quarter outlooks of large companies to assess the state of the global economy.
While stock prices can decline further amidst high volatility, we expect the decline to be relatively contained since Federal Reserve policy is generally supportive of continued economic expansion and corporate earnings growth in the U.S. Once valuation metrics become compelling, the decline is likely to set the stage for an advance in stock prices. We rate the AlphaProfit Sector Portfolio Indicator ‘Buy on Dips’.
Neustar (NSR) shares are down 50% this year. The company provides technology & directory services to the communications industry. Concerns of Neustar losing its status as the local number portability administrator are weighing on its shares.
Neustar’s network management, analytics, and security services businesses are growing. Neustar purchase of .CO Internet S.A.S provides opportunities to broaden its registry services. Suiting risk-tolerant investors, Neustar shares are value-priced at 6.0Xforward EPS. The possibility of the private equity firms buying Neustar adds to speculative appeal.
(Next earnings: Late October).
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, www.alphaprofit.com, 281-565-6963, October 2014