IAC/InterActiveCorp (IACI) is a stock I first wrote about and purchased in early July. Since then the stock is up more than 15%. However, it continues to pick up positive catalysts and it remains a core growth holding in my portfolio as I see it having it further upside ahead.
Positives/Catalysts for IACI:
- Consensus earnings estimates for both FY2012 and FY2013 have improved some 3% over the past three months.
- There was a positive story on the company's CEO in Barron's this weekend.
- Chairman Barry Diller also received a very flattering profile when he made the cover of Fortune a week ago.
- It just acquired About.com from the New York Times for $300mm as well as privately held DateHookup.com as it continues to make solid strategic acquisitions.
IAC/InterActiveCorp has a multitude of Web properties in the U.S. and internationally, including Match.com, Ask.com, Dictionary.com and Urbanspoon.com.
4 additional reasons IAC is a still a solid pick up for growth investors at under $54 a share:
- Earnings are growing at an impressive clip. The company made $2.26 a share in FY2011, but is on track to post better than $2.80 a share in FY2012 which analysts believe will jump past $3.50 a share in FY2013.
- The company sports a fortress balance sheet with $850mm in net cash on its balance sheet (Just under 20% of current market capitalization)
- The stock is near the bottom of its five year valuation range based on P/E and P/CF. It also yields 1.8%.
- IACI should post a revenue increase of over 30% in FY2012 and approximately 15% in FY2013. The stock has a five year projected PEG of just over 1 (1.06).
Disclosure: I am long IACI.