Yandex (YNDX): Because Russians Search the Internet Too

YNDX is currently basing and shows a good entry point

   

Search engine sites have become indispensable tools of the modern world. If you’re in the West, Google (GOOG) is probably your search engine of choice. If you’re in China, you use Baidu.com (BIDU). And if you’re in Russia, you use Yandex N.V. (YNDX).

The search giant is the go-to Internet site for citizens looking up things in that nation, proof that the Russians love to search the web too.

8 30 13 yndx 286x300 Yandex (YNDX): Because Russians Search the Internet Too
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According to some estimates, Yandex has control of about 60% of the Russian search market, and that number is expected to continue growing over the next decade. That big market share has translated into strong earnings growth, with the company posting a 47% rise in year-over-year Q2 EPS. Consensus forecasts for Q3 is anticipating an EPS gain of about 38%, and increased revenue of north of 30%.

These strong fundamentals are indeed appealing, but what’s even more appealing to traders is the price action in 2013. Year to date, YNDX is up 40%, and since falling to its mid-April low the shares are up nearly 60%.

Technically speaking, YNDX broke out of a basing pattern in early July on its way to a new 52-week high, reaching $34.64 intraday in early August. Now the shares appear to be forming another base again around the $32.50 area.

If we see continued strong fundamentals in YNDX, traders will likely keep bidding this stock higher, and that’s a profit wave you’ll want to jump on right now while YNDX remains below $33.

At the time of publication, Jim Woods had no positions in any of the securities mentioned.


Article printed from InvestorPlace Media, http://investorplace.com/247trader/yandex-yndx-because-russians-search-the-internet-too/.

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