MEDIAALPHA INC-CLASS A (NYSE:MAX) – A Strong Contender for Growth Investors

MEDIAALPHA INC-CLASS A (NYSE:MAX) stands out as a compelling pick for investors following Louis Navellier’s growth-focused strategy. The company’s strong fundamentals, accelerating earnings, and high return on equity align well with the criteria outlined in The Little Book That Makes You Rich. Below, we examine why MAX fits this approach.

Key Strengths Supporting Growth Potential

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 12.5% over the past three months, signaling confidence in future performance. MAX has also beaten earnings expectations in three of the last four quarters, with an average surprise of 235%.
• Revenue & Earnings Growth: Year-over-year revenue surged 148.6%, while quarterly sales grew 108.7%. EPS growth is even more striking, with a 169% increase over the past year and an 850% jump in the most recent quarter.
• Operating Margin Expansion: The company’s operating margin improved by 192% year-over-year, reflecting better cost efficiency alongside revenue growth.
• Strong Cash Flow: Free cash flow grew 105.9% in the past year, providing financial flexibility to sustain expansion.
• High Return on Equity: MAX delivers an exceptional ROE of 199.4%, indicating effective use of shareholder capital.

Fundamental Snapshot

Our fundamental analysis report rates MAX 5/10, noting its solid financial health and profitability. While margins have faced pressure, the company’s growth trajectory and reasonable valuation (P/E of 21.3, below industry peers) make it an interesting candidate.

For more stocks matching this strategy, explore our Little Book screener, updated regularly.

Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.