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MediaAlpha defines itself as a company that uses technology and data science to help companies optimize their customer acquisition efforts.
I have done some research and have found several points that make it attractive for both the short and long term.
Zacks not only rates the stock as a strong buy, but also said on November 20 that the Trump administration would benefit the company and that
MediaAlpha has an expected revenue and earnings growth rate of 30.1% and 82.5%, respectively, for 2025.
Moreover, its last five earnings and revenue reports have presented really positive figures, and the strength of the company's numbers can be confirmed by taking a look at Finviz.
Simply Wall Street notes two important facts:
- The company currently trades 71.1% below their estimate of its fair value.
- And it became profitable this year.
Between October 31 and November 5, 2024, its stock market price fell from $20.63 to $11.63, a decline of 43.62%.
Most of the drop, the one that occurred on November 5, occurred because the company received a an initial complaint from the Federal Trade Commission for alleged violations of business practices.
Since then, its price has recovered by 8.6 %, having formed a rather interesting support around $11.60
Analyst ratings (1-year forward) are $13 (low), $25.14 (average) and $30 (high).
In addition, Zacks wrote the following on November 13, 2024:
The average short-term price target of brokerage firms represents a jump of 95.6% from the last closing price of $12.47. The brokerage target price is currently in the range of $13-$31. This indicates a maximum upside of 148.6% and no downside.
MediaAlpha has expected revenue and earnings growth rate of more than 100% for the current year. The Zacks Consensus Estimate for current-year earnings has improved 20% in the last 30 days.
I am in with around 2.000 shares!
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