Wednesday, January 17, 2007

(VCLK) - ValueClick - reaches an estimated 70% of U.S. online consumers

Valueclick is benefiting from the trend of increased online advertising. VCLK has met or exceeded earnings estimates in 10 out of the past 11 quarters. Nine of the surprises have been over 20%. Six analysts have raised their full-year forecasts for 2006. Over the past 90 days, 2007 estimates have risen four cents to 75 cents per share.

Full Analysis

ValueClick (VCLK) is an online marketing services company. The company sells targeted and measurable online advertising campaigns and programs for approximately 6,000 advertisers and advertising agency clients, generating qualified customer leads, online sales and increased brand recognition on their behalf.

VCLK provides targeted advertising campaigns to reach online consumers its customers are most interested in and performance-based campaigns where marketers only pay for advertising when it generates a lead or sale. The company's customer base consists of direct marketers, brand advertisers, and the advertising agencies that serve these two groups.

The company is well positioned with its display advertisement network, which reaches an estimated 70% of U.S. online consumers. According to market research firm comScore, as of July 2006, VCLK's network reaches 127.7 million unique users per month, second only to Yahoo!, which reaches 129.4 million users per month. This makes VCLK's proposition attractive to advertisers as they are able to reach a large audience with one relationship.

According to Zacks Equity Research Analyst Steve Biggs, CFA, industry analysts expect 25% growth in online advertising growth in 2006, and a doubling of the market from 2005 to 2009. This bodes well for ValueClick as it benefits from increased online spending, and does not have to worry about attracting traffic to a specific website.

VCLK has met or exceeded earnings estimates in 10 out of the past 11 quarters. Nine of the surprises have been over 20%. Six analysts have raised their full-year forecasts for 2006. Over the past 90 days, 2007 estimates have risen four cents to 75 cents per share.

Content Courtesy: Zacks Investment Research

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