NEW YORK ( TheStreet) -- If you're a current Coinstar (CSTR) investor Thursday's earnings release must have felt like getting a DVD stuck halfway in the machine while running late on your way to work.
Coinstar's stock increased about 6% from a year ago and remains in a bullish trend. Coinstar's CEO Paul Davis announced revenue growth of 22%. While part of the perceived weakness looking forward is attributed to rental weakness, Coinstar and Redbox continue to mint mountains of coins.
At least most of the market cap losses appear to be baked in the cake at this point. Coinstar is currently valued with a price-to-earnings ratio of only 10.
Historically, stocks with a price-to-earnings ratio under 20 outperform stocks with multiples over 20. Does this mean you should not invest in growth companies sporting multiples above 20? No, however, it does mean when you consider an investment such as Coinstar, you should look for dips in the price as buying opportunities. Thursday's after-hours fall was more turbulence than a shifting sentiment in the company or management.Netflix's (NFLX - Get Report) recent earnings release was met with tempered ingestion and price plunge. It appears reasonable then that Coinstar was facing a selloff with anything other than a strong beat on every metric. (Read my
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts