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 growth-focused investors, particularly those following the criteria outlined in Louis Navellier’s The Little Book That Makes You Rich. The company’s strong fundamentals, accelerating earnings, and high return on equity make it a noteworthy pick.

Key Strengths Aligning with Navellier’s Growth Criteria

• Earnings Revisions & Surprises: Analysts have raised EPS estimates for the next quarter by nearly 30% over the past three months. MAX has also delivered an average earnings surprise of 244.5% over the last four quarters, exceeding expectations consistently.
• Sales & Earnings Growth: Revenue growth is robust, with year-over-year sales up 148.6% and quarterly sales growth at 108.7%. EPS growth is even more impressive, with a 1,150% quarterly increase and 177.9% annual growth.
• Expanding Profitability: Operating margins have improved significantly, rising 192.3% over the past year, indicating efficient cost management alongside revenue expansion.
• Strong Cash Flow: Free cash flow growth surged 105.9% in the last year, reflecting the company’s ability to generate cash from operations.
• High Return on Equity (ROE): With an ROE of 199.4%, MAX ranks at the top of its industry, demonstrating effective use of shareholder capital.

Fundamental Overview

Our full fundamental analysis rates MAX at 5 out of 10, noting its strong growth metrics and reasonable valuation. While profitability margins have seen some pressure, the company’s revenue and earnings momentum, combined with a solid balance sheet, position it well for future performance.

For investors seeking high-growth opportunities, MAX fits the profile of a company with accelerating fundamentals.

Our Little Book screener lists more stocks meeting these criteria and is updated regularly.

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.