MediaAlpha (MAX) = Goldman Sachs & Zen Ratings Agree it’s a Buy

I wanted to share a stock that was a sparkling example of the Zen Ratings. In this case MediaAlpha (MAX) is not just an A overall...but even more impressive that it is in the top 1.2% of all stocks reviewed on the 115 different factors.

This innovative online partner to the insurance industry has enjoyed a period of explosive growth going back the past 7 quarterly reports. The last 4 of which averaged a 109% surprise. Yet amazingly the most recent 76% beat led to a halving of the stock price.

Given the above earnings traditions you start to understand why the Growth rating is the strength of MAX in the 99th percentile. (actually top 0.3% of all stocks). This is not just about earnings growth rate…but consistency of earnings growth across time and across earnings, cash flow, profit margin, EBITDA and yes, traditional earnings per share. 

Financial strength and growth typically go hand in hand thus not surprisingly that is also impressive in the 93rd percentile. 

Our AI factor, which is dialed into stocks ready to move now, is not too shabby at 86th percentile. 

The last Zen Rating aspect to note is Value in the top 5% across the 21 factors of value we measure. 

To be clear, we don’t just measure 115 random factors of a stock's attractiveness. 

We measure ONLY the individual 115 factors that our extensive studies showed pointed to stocks that beat the market. And then combine them in the optimal way to find stocks that consistently outperform. 

Thus, after that extensive computer analysis MediaAlpha is in the top 1.2% of the 4,600 stocks we reviewed…this points to exceptional upside potential. 

Gladly top Wall Street analysts also still see a lot more upside in these shares. as attested to by top analysts who were unshaken by the recent odd share price action. 

That includes Eric Sheridan from Goldman Sachs (top 1% of all analysts in terms of stock picking performance) is pounding the table with a street high $26 target...yes, that is about 131% above the Monday close of $11.21. 

Fundamentally the Zen Ratings says you would be hard pressed to find a more impressive stock. And the analysts from Goldman Sachs in the top 1% of his peers is saying the same thing. 

Maybe not crazy too “max-out” the number of shares you add to your portfolio now before shares start to take off!

What To Do Next?

MediaAlpha (MAX) is just one of the timely stocks found in my Zen Investor portfolio.

We are harnessing the power of the Zen Ratings model as well as top Wall Street analyst recommendations to find more stocks with 100%+ upside potential. 

If that is of interest to you, then please click below…

Discover the Zen Investor portfolio & top stocks now > 

p.s. 2 hot new stocks were added Monday. You need to get those tickers.

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

Want to get in touch? Email us at news@wallstreetzen.com.