It’s time to break down another online name taking the world by storm throughout the COVID-19 pandemic. Here is the breakdown of $STMP, otherwise known as Stamps.com.
Current Price: $272.64
52/Wk High: $325.123
52/Wk Low: $73.14
Read below for the breakdown!
Stamps.com is a major online mailing and shipping platform. The company offers an on-demand postage service in which users can quickly and easily print postage and shipping labels.
The company currently operates under several brand names including Stamps.com, ShipStation, Shipping Easy, Endicia, and Ship Works.
Due to the COVID-19 pandemic, many have been forced into shipping and mailing more and more, creating a perfect growth opportunity for Stamps.com.
Taking a look at the numbers, Stamps.com delivered big time throughout the last reported quarter.
Stamps.com delivered a Q2 beat, with an EPS of $3.11 versus the expected analyst’s EPS consensus of $1.26. Not only that but revenue also continued to grow with Q2 revenues topping $206.7 million, up 49% since Q2 of 2019.
Furthermore, Net Income also increased significantly in the second quarter landing at $51.7 million, up 270% since Q2 2019.
Digging into the balance sheet the numbers are quite good. When last reported (Q2 2020) Total Debt sat at $27 million, down from $64 million in Q1. Not only that, but Total Liabilities came in at $277 million.
On the bright side, Total Assets came in at $992 million along with a Cash and Short Term Investments level of $275 million.
When it comes to guidance, management upgraded expectations during the Q2 report for the full year.
Stamps.com management upgraded total 2020 revenues expectations to a range of $650 million to $725 million from the original range of $570 million to $600 million.
Management also maintained its bullish action on EPS expectations for the full year, upgrading EPS expectations to a range of $3.93 to $6.70 from a range of $2.08 to $2.92.
Finally, Stamps.com management also increased its non-GAAP income expectations on the year, to a range of $79 million to $122 million from the original range of $41 million to $53 million.
Given the excellent Q2 numbers, analysts have become increasingly bullish on Stamps.com. Currently, the mean price target is $336.67/share, representing a 23.18% gain.
Secondly, the high price target sits at $390.00/share, representing a 42.69% gain, while the low price target sits at $280.00/share, representing a 2.44% gain.
The big money is also just as bullish as the analysts. Currently, 87.30% of $STMP is owned by institutions. Top holders include BlackRock Institutional Trust, The Vanguard Group, and Disciplined Growth Investors.
Taking a look at the ever-important pricing ratios the stock is not badly priced;
Price to Earnings = 49.73x
Price to Sales = 7.07x
Price to Book = 6.00x
Price to Cash Flow = 19.81x
Market Cap = $4.6 billion
When it comes to the charts, it seems Stamps.com stock is in a relatively positive location to open and or start a position. According to the six-month charts, the MACD sits within an upward range of 8.51 down to 4.5.
While the MACD is moving up, the RSI is also moving higher and currently sits at 67.04. Finally, the CCI sits at a high 116.44 and is growing increasingly bullish.
It is also important to note that Stamps.com currently trades at a market cap of $4.6 billion and is roughly 50 points off its highs.
In short, Stamps.com in my opinion is an excellent play both in the mid and long term. While volatility is high, I see the upcoming holiday season mixed with the COVID-19 pandemic as a major growth opportunity both for the company and stock.
EAT - SLEEP - PROFIT
Disclaimer: This is not direct financial advice, simply opinion based on independent research.