GoDaddy Hits New 52-Week High On Expanding Product Base

Shares of GoDaddy Inc. (NYSE:GDDY) rallied to a new 52-week high of $56.86, eventually closing a tad lower at $56.24 on Feb 20.

The stock has soared 53.0% over a year, underperforming the industry’s rally of 58.2%. However, we believe that an expanding product portfolio along with a huge customer base will help the stock rebound in 2018.

Notably, GoDaddy topped the Zacks Consensus Estimate in three of the trailing four quarters and delivered in-line results in one with an average beat of 120.83%.

Recently, the company announced the acquisition of Main Street Hub, which is likely to lead to significant growth in customer base and generate stable revenues. The deal ensures the reliability of customers on a single platform for handling website creation, email marketing and social media platforms.

GoDaddy carries a Zacks Rank #3 (Hold) and has a market capital of $8.02 billion.

Expanding Portfolio

GoDaddy has a well-diversified product portfolio, which is driving the top line.

The company is experiencing robust demand for security products, owing to increasing cybercrimes. GoDaddy is also investing on security and compliance technology.

Recently, GoDaddy Website Security was added to the security portfolio. This offers malware protection, hack repair and clean sites to customers.

Also, the new mobile-optimized website builder, GoCentral, has gained strong momentum in the market. The product ensures easy and elegant site building with fully-integrated marketing and e-commerce tools. Moreover, users can build, customize or update their site from a phone or tablet.

Growing Global Presence

GoDaddy’s continuous investment on products, technology platform and customer care is expected to boost growth in international markets. The company has more than 5 million customers outside the United States, notably in Canada, India and the United Kingdom.

Further, strategic acquisitions like Host Europe Group (HEG) are helping the company to increase foothold in international markets.

Stocks to Consider

Investors interested in the broader technology sector can consider Lam Research Corporation (NASDAQ:LRCX) , The Trade Desk (NASDAQ:TTD) and Applied Materials (NASDAQ:AMAT) . While Lam Research Corp. sports a Zacks Rank #1 (Strong Buy), The Trade Desk and Applied Materials carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth for Lam Research Corp, The Trade Desk and Applied Materials is pegged at 14.85%, 25% and 12.67%, respectively.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>