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

MEDIAALPHA INC-CLASS A (NYSE:MAX) stands out as a potential candidate for investors following Louis Navellier’s growth-focused strategy. The company, which operates a marketing technology platform for insurance carriers, meets several key criteria outlined in Navellier’s "The Little Book That Makes You Rich." Below, we examine why MAX aligns with these principles.

Key Growth Metrics

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by 23% over the past three months. Additionally, MAX has beaten earnings expectations in three of the last four quarters, with an average surprise of 244.5%.
• Revenue & Earnings Growth: Year-over-year revenue growth sits at 148.6%, while quarterly sales growth is up 108.7%. EPS growth is even more impressive, with a 1,150% quarterly increase and 177.9% annual growth.
• Operating Margin Expansion: The company’s operating margin has expanded by 192.3% over the past year, indicating improving profitability.
• Strong Cash Flow: Free cash flow has surged by 105.9% in the last 12 months, reinforcing financial flexibility.
• High Return on Equity (ROE): MAX boasts an ROE of 199.4%, well above the industry average, signaling efficient use of shareholder capital.

Fundamental Analysis Snapshot

Our fundamental report rates MAX 5 out of 10, reflecting a mix of strengths and areas for improvement. Key takeaways include:

• Profitability: Strong ROE and return on invested capital (36.1%) outperform most peers.
• Valuation: The stock appears reasonably priced with a forward P/E of 11.6, below both industry and S&P 500 averages.
• Growth Outlook: Analysts expect EPS to grow by 50.3% annually, supported by a projected 12.3% revenue growth rate.

For investors seeking similar growth opportunities, our Louis Navellier-inspired screener provides updated results daily.

Disclaimer

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