| Stock (Symbol) | Stock Price | |
Qihoo 360 (QIHU) |
$84 |
|
| Data is as of | Expected to Report | Sector |
December 6, 2013 |
March 3 – March 3 |
Technology |
| Sharek’s Take | ||
 Qihoo had a remarkable year gaining search engine traffic in China, now its time to make some money. Last year when Qihoo’s search engine debuted it was expected to get 10% of the Chinese search market (leaving leader Baidu with around 60%). But business is doing better than anyone ever imagined and Quihoo now controls more than 20% of China’s search traffic — and this number will likely surpass 25% in 2014. The company’s ability to make ad money off these searches could be a boon for profits. Ad revenue accounts for QIHU’s 60% of revenue right now, online games 32%. Profits are set to go from $1.39 last year to $2.20 this year. 2015’s estimate is $3.50, but I think it could make $5 that year (or the year after). A 40 P/E times $5 in profits would be a $200 stock. |
||
| One-Year Chart | ||
 QIHU’s P/E is 38 now, which means the stock isn’t cheap. I think a market correction could make this stock correct. The Estimated LTG of 52% is earth shattering. Profits are now doubling every quarter. Nice base the stock’s building. |
||
| Earnings Table | ||
 Revenue climbed 125% last quarter, even higher than the 108% 2QtrsAgo. Profits jumped 135%. As mentioned last qtr, Qihoo is opening ad agencies in China, and momentum is accelerating.QIHU crushed analysts estimates for the second straight quarter. Annual Profit Estimates increased, but not as much as they did 2QtrsAgo. That’s the only blemish in this report. Quarterly estimates show triple-digit growth should continue for at least another six months. |
||
| Fair Value | ||
 With QIHU in hyper-growth mode, I’m keeping my Fair Value P/E on the stock at 60. The P/E is 60 now. I think the stock can go up 50% next year, 150% by 2015. |
||
| Ten-Year Chart | ||
 This stock went on a parabolic move and is now putting in a nice base. This stock is at a good buy point. Lots of support around $75-$80. The company made $0.55 in 2011 and estimates are for $2.20 next year. This is a great growth stock and deserves a high P/E for what it has accomplished. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
7 of 26 |
Qihoo has had a robust year but this looks to be a multi-year winner as it rakes in the revenue from its search engine. |
|
Aggressive Growth Portfolio
7 of 14 |
||
