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JimVanMeerten (65.32)

Is Yahoo a turn around stock?

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May 03, 2011 – Comments (0) | RELATED TICKERS: YHOO

I noticed Yahoo (YHOO) when I was screening on Barchart for S&P 500 stocks having positive price momentum.  It looks like this might be a turnaround candidate in every way. Competition is high in this sector and Yahoo has to go up against Google, AOL and MSN.  Hopefully there is enough of the pie to go around.

Yahoo! Inc. (YHOO) is a global Internet communications, commerce and media company that offers a comprehensive branded network of services. As one of the first online navigational guides to the World Wide Web, Yahoo! is one of the leading guides in terms of traffic, advertising, and household and business user reach. The company also provides online business and enterprise services designed to enhance the productivity and Web presence of Yahoo!'s clients.


Technical Factors:

1 - 100% Barchart technical buy signals

2 - Trend Spotter buy signal

3 - 8 new highs and up 7.72% in the last month

4 - Relative Strength Index 69.53% and rising

5 - Trades around 18.14 with a 50 day moving average of 16.94

Fundamental Factors:

1 - Widely followed on Wall Street

2 - Brokerage analysts have released 6 strong buy, 8 buy, 18 hold and 2 negative recommendations

3 - Sales are expected to decrease by .9% this year but rebound by 6.20% next year

4 - Earnings are projected to also decrease by 14.00% this year but rebound by increasing 18.20% next year and continue by increasing 13.12% annually for the next 5 years

General Investor Sentiment:

1 - Interest in this stock is high as measured on Motley Fool with 5,901 readers expressing an opinion

2 - CAPS members vote 3,928 to 994 that the stock will beat the market

3 - The more experienced All Stars vote for the same result with a vote of 811 to 168

Summary:  The stock does have very stiff competition but analysts look for profits in the future.  Investor Sentiment is high and positive and the price current momentum shows investors are interested.

Jim Van Meerten is an analyst for  Marketocracy Capital Management.  He shares his knowledge and experience from over 40 years of investing in stocks, mutual funds and ETFs on Barchart.com  in his daily blog -- Barchart Portfolio Blogs.

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