Mark Twain was quoted saying, “Many a small thing has been made large by advertising.” Making small things large and large things bigger is the specialty of TechTarget (TTGT), which provides information technology advertising via a network of web sites. On Monday, TechTarget stock’s IBD SmartSelect Composite Rating climbed to a near-best 96, up from 94 the day before.
The new rating for the fast-growing small cap is a sign the stock is outpacing 96% of all stocks when it comes to the most important stock-picking criteria. History shows top market performers tend to have a 95 or higher score as they launch their major climbs.
Big Money Buying TechTarget Stock
TechTarget provides an advertising platform for 1,300 tech companies including Cisco Systems, Dell Technologies, IBM and HP.
TechTarget stock has a best-possible 99 EPS Rating, which means its recent quarterly and longer-term annual earnings growth is outpacing 99% of all stocks.
Its Accumulation/Distribution Rating of B, on an A+ to E scale with A+ tops, shows moderate buying by institutional investors over the last 13 weeks.
In Q2, the company reported 82% earnings-per-share growth to 51 cents. The prior three quarters, it saw EPS rise 15%, 70% and then 132%. Revenue grew 83% in its most recent quarter, to $63.7 million, up from 69% growth in the prior quarter. The company has now posted accelerating profit and sales growth each of the last four reports.
TechTarget stock holds the No. 1 rank among its peers in the Commercial Services-Advertising industry group. Trade Desk (TTD) and Lamar Advertising (LAMR) are also among the group’s highest-rated stocks.
TechTarget stock is now out of buy range after breaking out from a 30.10 buy point in a consolidation. Look for a fresh buy opportunity, such as a three-weeks-tight pattern, or a rebound off of the 50-day or 10-week line.
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