Is LinkedIn linked to growth?

This stock has the characteristics of past big market winners, and is looking like a flag-bearer for this bull move.

By TheStockAdvisors Feb 19, 2013 3:30PM
By Mike Cintolo, Cabot Top Ten Trader

Our current favorite might prove to the be the No. 1 leader among growth stocks. It's LinkedIn (LNKD), which soared after its latest earnings. The stock has all the characteristics of past big market winners, and after its recent huge breakout, it’s looking like a flag-bearer for this bull move.

The company’s story is just as enticing as it was the day it came public -- it's revolutionizing the multibillion-dollar recruiting and talent acquisition industry, and is in fact becoming the standard for big companies. And the firm’s fourth-quarter report confirmed that’s the case.

Revenues and earnings continued their torrid growth pace, and all of the sub-surface metrics were impressive as well.

Its members totaled 202 million at year end (two new members are signing up per second!), unique visitors to its website grew 26%, page views reached an all-time high and non-U.S. revenue continued to expand and now makes up 38% of all revenues.

The reason those page-view statistics are meaningful is because LinkedIn is becoming sort of a professional online portal, where millions go every day to check on business news that relates to them.Image: Office workers (ColorBlind Images/Blend Images/Corbis)

And that approach is paying off; while the firm’s Talent Solutions division is the main attraction (more than half of revenues, and up 90% from a year ago), its marketing division grew 68% and made up more than a quarter of all revenues.

All told, LinkedIn is set to get much, much bigger in the quarters and years ahead, and could even see an added boost should the global economy (and, hence, hiring) pick up steam.

Technically, the recent breakaway gap actually took LNKD out of a huge base that dates back to its IPO from 21 months ago. If you don’t own any, consider buying a small position around here or on a pullback of a few points, with a stop in the $130-$135 area.

More from TheStockAdvisors.com

0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

120
120 rated 1
265
265 rated 2
460
460 rated 3
719
719 rated 4
629
629 rated 5
629
629 rated 6
622
622 rated 7
437
437 rated 8
319
319 rated 9
116
116 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.