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

MEDIAALPHA INC-CLASS A (NYSE:MAX) stands out as a compelling candidate for investors following Louis Navellier’s growth-focused strategy outlined in The Little Book That Makes You Rich. The company’s strong fundamentals, accelerating earnings, and high return on equity align well with the book’s key criteria. 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 18.47% over the past three months. MAX has also delivered three positive earnings surprises in the last four quarters, with an average beat of 244.51%.
• Revenue & Earnings Growth: Year-over-year revenue growth sits at 148.59%, while quarterly sales surged 108.69%. EPS growth is even more impressive, with a 1,150% quarterly increase and 177.94% annual growth.
• Expanding Profitability: Operating margins improved by 192.32% over the past year, reflecting efficient cost management. Free cash flow growth of 105.87% further underscores financial strength.
• High Return on Equity: MAX boasts an exceptional ROE of 199.44%, indicating effective use of shareholder capital.

Fundamental Overview

Our fundamental analysis report assigns MAX a rating of 5/10, noting its solid financial health and strong growth metrics. While profitability margins have room for improvement, the company’s revenue and earnings trajectory remains robust. Valuation appears reasonable, with a forward P/E of 12.41, below both industry and S&P 500 averages.

For investors seeking similar high-growth opportunities, our Louis Navellier-inspired screener provides daily updates on qualifying stocks.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.