Zix Corp (NASDAQ:ZIXI)
CAPS Rating:
The Company provides easy-to-use-and-deploy e-communication services that connect enterprises and consumers in the healthcare, finance, insurance, and government sectors to protect and deliver sensitive information.
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Outlook good
The outlook is certainly good. One problem is that ZIXI just went profitable in Q2 of 2010 so the metrics are skewed. Most reports on ZIXI are sporting PE TTM ratios in the 70's for this stock just like here on the Fool's summary. While this is accurate for GAAP earning for the trailing twelve months is is not very useful information. Adjusted 2011 (non-GAAP) FORWARD earnings for ZIXI will be in the range of 19 to 23 cents. Even with today's price of 4.74 with 21 cent earnings that would yield a PE of 22.57 which is the real time number. This is the reason that Craig Hallum just raised the price target for ZIXI to $5.50. Do you own DD but this is a fast moving situation.