Last Updated: 14 Nov 2024
Executive Summary
QuinStreet Inc. (QNST) is an online performance marketing company that provides client acquisition services to businesses in the United States and internationally. The company has a market capitalization of $1.24 billion and trades on the NASDAQ exchange. QuinStreet's latest stock price is $21.54.
Company Overview
QuinStreet was founded in 1999 and is headquartered in Foster City, California. The company offers a variety of marketing services, including search engine marketing, display advertising, and email marketing. QuinStreet's clients include major brands such as AT&T, Verizon, and Comcast.
Fundamental Analysis
QuinStreet's financial performance has been mixed in recent years. The company has reported losses in each of the past three fiscal years. However, QuinStreet's revenue has grown steadily, and the company is expected to return to profitability in fiscal 2024.
QuinStreet's key financial metrics are as follows:
Revenue: $768.8 million (TTM)
Gross profit: $485.2 million (TTM)
Diluted EPS: -$0.39 (TTM)
EBITDA: -$4.5 million (TTM)
Net income: -$22.9 million (TTM)
Technical Analysis
QuinStreet's stock price has been in a downtrend since early 2022. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 50, indicating that the stock is oversold.
Short Term Outlook
QuinStreet's stock price is likely to remain under pressure in the short term. The company is facing challenges from increased competition and a slowdown in the economy. However, QuinStreet's long-term prospects remain bright. The company has a strong track record of innovation and a loyal customer base.
Long Term Outlook
QuinStreet is well-positioned to benefit from the growing trend of online marketing. The company's focus on performance-based marketing is a key differentiator in the industry. QuinStreet is also expanding its product offerings and entering new markets. As a result, the company is expected to continue to grow its revenue and profitability in the long term.
Analyst Recommendations
The majority of analysts have a buy rating on QuinStreet stock. The average analyst target price is $28.67, which represents a potential upside of 33% from the current price.
Conclusion
QuinStreet is a solid long-term investment opportunity. The company has a strong track record of innovation and a loyal customer base. QuinStreet is also well-positioned to benefit from the growing trend of online marketing. While the company's stock price is likely to remain under pressure in the short term, the long-term outlook is bright.
