NeuStar (NSR) isn't a household name, but this technology company is definitely worth paying attention to.
NSR primarily provides information and data analytics that corporation can use in their marketing activities. It also provides IT security, clearinghouse services for communications-service providers and more.
Data analytics is a burgeoning field, while IT security is in high demand. Both make NeuStar worth a look.
But what makes me especially excited about NeuStar is the support it earns from my "guru" stock screens. As regular readers know, I rely on a dozen or so automated screens that I base on the writings of Warren Buffett, the late Benjamin Graham and other well-known investment gurus.
I'm confident enough to recommend a stock if one of these strategies gives it a very high rating, but NeuStar goes way beyond that minimum. It earned strong recommendations from three of my guru screens.
For example, my James P. O'Shaughnessy-based strategy likes NeuStar for its:
- Sizable market capitalization.
- Earnings per share that have increased in each of the past five years.
- Price-to-sales ratio of 1.42, which indicates that the stock is well-priced.
- An 88 reading of relative strength, a measure of how well a stock has performed in the past year relative to the market.
A strategy I modeled after the writings of John Neff also endorses NeuStar due to the firm's:
- Low P/E ratio of 8.82.
- Solid growth in earnings per share. Analyst consensus predicts 15% future EPS growth.
- Sizable sales-growth rate.
My Joel Greenblatt screen is also a NeuStar fan. This strategy looks at only two variables -- earnings yield and return on total capital -- and creates a combined ranking for a stock from among the thousands of companies in our database. NeuStar came in at an impressive No. 6 among all of the stocks that we track.
The Bottom Line
NeuStar has a lot going for it in terms of the businesses it's in, its historical performance and the support it earns from my guru strategies.
You might not have heard of NeuStar before, but that doesn't mean it doesn't deserve checking out now.