This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Big Stocks Ripe for a Sharp Pullback

Yahoo!

Along with Netflix's Reid Hastings, Yahoo!'s (YHOO) Marissa Mayer deserves kudos for reviving a seemingly broken business model. Mayer has sought to light a fire under Yahoo!'s sleepy management team, and the company is again garnering buzz in the tech/media industry.

The truest measure of Ms. Mayer's efforts: Yahoo!'s shares have risen from $16 when she arrived in July 2012 to a recent $26.

>>5 Rocket Stocks Ready for Blastoff

There's one small problem with all of Yahoo!'s good fortune. This is still a company struggling for growth. Sales are expected to grow just 1% this year (to $4.5 billion) and just 3% in 2014. And by then, per-share profits are expected to be rising at around 9% (to around $1.50 a share in 2014).

To justify any further gains for this stock, it's crucial for Yahoo! to unveil some major growth initiatives, and we just witnessed one. The recently announced acquisition of Tumblr exemplifies the bold thinking that Yahoo! needs, but it may not be enough to move the needle in terms of sales and profits. The $1.1 billion purchase of the multi-media-focused social networking site is aimed at stemming steady customer defections: Yahoo! has seen a decline in page views (on a year-over-year basis) for 13 straight months. Yet Tumblr had just $13 million in revenue in 2012, and Yahoo! doesn't just need page views -- it needs revenues.

Time will tell if this type of deal will do the job or if it represents a desperate measure to restore Yahoo!'s relevance.

To see these potential market laggards in action, visit the 4 Big Gainers Set to Reverse Course portfolio.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

Stockpickr is a wholly owned subsidiary of TheStreet.com.
3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,073.37 -40.17 -0.23%
S&P 500 1,986.42 +2.89 0.15%
NASDAQ 4,471.0790 +15.0630 0.34%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs