Constant Contact (NASDAQ:CTCT)
CAPS Rating:
The Company is a provider of on-demand email marketing solutions for small organizations, including small businesses, associations and non-profits, as determined by the size of its customer base.
RSS Headlines
Fool UK
Recs
The following screen on the stock screener took me here:LT Debt-to-Equity Ratio0.00 - 0.60Rev. Growth Rate (last 3 Yrs)20.00 - 10945.00Gross Margin60.00 - 99.90Price-to-Sales (TTM)0.00 - 2.00I'll look into the causes of the stock price falling over the last year before considering actually buying any stock, but for now it's enough for me to think this stock is quite undervalued.
Price/book is irrelevant for many tech companies, as their book values are extremely low. In the same vein. P/E usually a fine metric to use, except in cases where the company is currently focusing on investing in their future growth rather than on maximizing their margins, such as with AMZN. Granted, AMZN's stock IS quite overpriced, but the P/E of 3600 is useless in determining that fact. If nothing else changed for AMZN except its stock price, it could easily maintain a P/E of about 1000 without actually being overpriced. This is why looking at things like cash flow are often far superior metrics.
An example of why I'd thumb up this stock is on that very GuruFocus page you linked me, the "Oprt. Cash Flow & Free Cash Flow" graph. That's a very nice trend for a participant in a rather competitive market segment to be displaying.