Why IAC Is Ready to Rebound

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, media and Internet company IAC/InterActive has earned a respected four-star ranking.

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

IAC facts

Headquarters (founded)

New York (1986)

Market Cap

$3.5 billion

Industry

Internet software and services

Trailing-12-Month Revenue

$2.6 billion

Management

CEO Gregory Blatt

COO Douglas Lebda

Return on Equity (average, past 3 years)

(5%)

Cash/Debt

$640.7 million / $95.8 million

Dividend Yield

2.3%

Competitors

AOL

CBS Interactive

Hearst Interactive Media


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

On CAPS, 90% of the 390 members who have rated IAC believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star Gumpster, tapped IAC as a particularly attractive bargain opportunity:

Results can be volatile given its participation in so many transforming and emerging businesses, but company has consistently generated strong cash flow -- helped by the stability from the dating business. With knowledgeable and connected leadership, company is likely to participate in emerging online business. Some risk that search business can't be maintained, but results in media segment should show improvement as they mature. Option grants are prolific, but judicious share buybacks should be helpful long-term. Recent dip could be a gift to holders for long-term.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, IAC may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here 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 TrackPoisedTo CAPS account.

The article Why IAC Is Ready to Rebound originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks 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 Motley Fool has a disclosure policy.

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