InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

3 Cheap Stocks to Surge in a Market Crash

Boring, Predictable, No-Surprises Strategy Safely Generates $67,548Veteran economist Dr. Stephen Leeb has just released a new report detailing his top 3 stocks to survive an inflation-driven market correction. They include precious metal and copper miners sitting on reserves that could send their share prices up 3,886%, as well as a water infrastructure company with a global footprint in developing regions.
Click here to learn more.

 

Investors Need a Dose of WebMD

By Tim Begany on January 14, 2016

Small biotech stocks may grab a lot of headlines, but don’t let them distract you from less-publicized yet equally exciting small caps in other areas of healthcare. For instance, in all the biotech hoopla of the past few years, how many investors overlooked WebMD Health (Nasdaq: WBMD)?

Too bad they did. Shares of the $1.8-billion firm, a world leader in providing health and medical information, more than tripled since mid-January 2013.

A powerful tailwind for WebMD’s stock: the graying of the population. The ranks of the elderly are swelling, and as people age they tend to have more health problems. They naturally want all the information they can get about those problems, and WebMD has long been a trusted source.

Growing traffic on the firm’s website is driving stronger ad sales and, in turn, the top and bottom lines. Revenue now tops $600 million annually, up from $470 million in 2012. Net income has soared to $53 million from 2012’s $20-million loss. Annual free cash flow of $79 million is nearly double that of three years ago.

The latest quarterly report (for Q3) showed an 8% increase in the number of unique visitors to 206 million per month and an 11% gain in the number of page views to four billion. Quarterly revenue rose 6% to $153 million, while earnings jumped 39% to $0.32 a share. Management expects to report the best quarter in WebMD’s history when it reveals fourth-quarter performance in a few weeks.

Importantly, WebMD also holds sway with healthcare professionals, especially physicians, who are a preferred target market for pharmaceutical and other advertising. WebMD increasingly reaches physicians through its Medscape mobile medical reference app, as CEO David Schlanger illustrated during the third-quarter conference call:

During the quarter we averaged approximately 6.8 million physician sessions per month, an increase of approximately 12% over the prior year period. For physicians and healthcare professionals throughout the world, Medscape is the premier source of medical news, clinical reference, point of care tools and medical education. In the U.S., Medscape has approximately 645,000 registered U.S. physicians that are active on an annual basis, representing a substantial majority of the practicing physicians in the US. During the third quarter, an average of approximately 380,000 U.S. physicians were active monthly.

We also reached approximately 2 million other U.S. healthcare professionals many of whom engage with patients and impact prescribing decisions, such as nurse practitioners and physician’s assistants, and are therefore an important audience for our advertisers. For health advertisers, we reach highly targeted consumers and physician audiences of scale at the time most likely to impact decision-making and with measurable outcomes.

The takeaway: WebMD still holds plenty of growth potential. So even if you missed out on it the past three years, consider being a shareholder for the next three.


You might also enjoy…

 

12 Stocks Virtually Guaranteed to Go Up in 2018

You may not believe it, but I have a calendar in my hands right now that tells me the exact date and time when a few stock are practically guaranteed to go up. 

Twelve of them, in fact.

And if you were to invest in them following the simple buy and sell instructions found in this calendar…

You could be making $1,181… $11,814…. and as much as $190,916 more than by using a “buy-and-hold” strategy.

And here’s the best part…

I’m giving away a few copies of this calendar to interested investors (First come, first served).

With this calendar, you could get higher profits with less risk.

Click here to get the full story, and to claim your copy.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.