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
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

5 Retail Stocks Jolly With Holiday Cheer

3. RetailMeNot

Continuing with the bargain-hunting theme, consumers are increasingly searching the Web for retailer coupons. RetailMeNot (SALE) of Austin, Texas, is a third-party provider of digital coupons in a relatively nascent market.

The global company owns a portfolio of coupon and deal-related Web sites in the U.S., Canada, Germany, France and the Netherlands, enabling consumers across to find hundreds of thousands of digital coupons and offers from retailers and brands, according to a company description.

The stock is up 11% since the company listed shares on the Nasdaq in July. Shares rose 2.2% to $31.52 on Monday.

"We continue to believe it is one of the best positioned in the large, under-penetrated digital couponing space and that there is meaningful upside from current stock price levels," according to Jefferies analyst Brian Pitz. He reiterated his buy rating on the stock in an Nov. 6 research note, following the company's third-quarter earnings. Pitz has a 12-month target price of $40.

The holiday season brings plenty of opportunity for RetailMeNot. For one, the success of its growing mobile app could provide momentum to RetailMeNot in selling its mobile coupon platform to more bricks-and-mortar retailers next year.

"As the leading digital coupon platform, RetailMeNot is well positioned to benefit from a more promotional retail environment combined with a more cautious consumer," Morgan Stanley analysts wrore in an Oct. 31 note. "Additionally, the company is rolling out a mobile app through which retailers can run campaigns to drive in-store purchasing. While, RetailMeNot is early in this effort, the mobile app has been downloaded [approximately] 7 million times so far, and the company is heavily marketing this effort."

A prime area for opportunity is clearly in mobile net revenue. RetailMeNot's mobile revenue jumped 190% to $5.8 million in the third quarter.

Last week, the company reported quarterly earnings of $5.6 million, or a per-share loss of 6 cents, down from earnings of $6.6 million, or 1 cent share, in the year-earlier quarter. The loss in the latest quarter included a $7.5 million payout in preferred stock dividends as well as increasing costs associated with promoting its coupons.

But the $1.6 billion-market cap company's net revenue jumped 39% over the prior year to $47.4 million, the company said. Excluding the company's acquisitions, net revenue still jumped 35%, it said. At quarter's end, RetailMeNot had more than 13.9 million global subscribers to a newsletter or store alert, up 81% year over year.

In his note, Pitz cited the company's second consensus estimate beat and raised guidance since its IPO. Management expects revenue between $66 million and $69 million for the fourth quarter. The company also raised its full-year revenue guidance to $197 million to $200 million, and adjusted income between $76 million and $78 million.

"We continue to believe in our global team's ability to execute on improving our websites and mobile capabilities, setting the stage for the continued importance of our business as an efficient, highly effective marketing channel that facilitates increased sales for retailers and brands gearing up for the upcoming holidays," said Cotter Cunningham, founder, president and CEO of RetailMeNot.

Stock quotes in this article: AMZN, SALE 

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.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

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