4-Star Stocks Poised to Pop: United Online

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer Internet and media services specialist United Online (NAS: UNTD) has earned a respected four-star ranking.

With that in mind, let's take a closer look at United Online's business and see what CAPS investors are saying about the stock right now.

United Online facts

Headquarters (founded)

Woodland Hills, Calif. (2001)

Market Cap

$440.9 million

Industry

Internet software and services

Trailing-12-Month Revenue

$897.7 million

Management

Chairman/CEO Mark Goldston
CFO Neil Edwards

Return on Equity (average, past 3 years)

13.7%

Cash/Debt

$136.1 million / $261.1 million

Dividend Yield

8%

Competitors

1-800-Flowers.com
Facebook
Provide Commerce


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 275 members who have rated United Online believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, hend6, highlighted a few of the stock's positives:

A great dividend yield coupled with a diversified business model and a decent P/E ratio at a low entry price. What's not to like? Earnings aren't particularly impressive, but they're stable. Five year outlook could shrink if this stock gets valued higher and the yield gets pushed down near the 2-3% level. At that point, I would need to see higher earnings to validate holding this one.

Of course, despite its four-star rating, United Online may not be your top choice. If that's the case, we've compiled a special free report for investors called "Discover the Next Rule-Breaking Multibagger," which uncovers another small-cap play with big potential. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

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