Last Friday, when the market took a 120-point nosedive, Marvel (MVL) rose a nice 1.6%. This should come as no surprise to those of you who have been investing money in the company recently. It certainly came as no surprise to my Quantum Growth subscribers!
With the help of my stock-rating tool, PortfolioGrader Pro, I caught this stock right before it began to truly soar. Since I’m never a fan of keeping a good find all to myself, let me tell you a little bit more about what has made this stock a true success story in the making.
Marvel: The Classic Super-Hero Story
Sure, Marvel has been around for years. They’ve had their good days, and well, their not so good days. If anything, Marvel emulates the classic “superhero” tale. After hitting rock bottom in the 1990s, the company’s overcome diversity and come out on top, now trading at its highest prices since it first emerged from bankruptcy in 1998. Why the sudden burst of success? Well, nothing has caught the media’s attention recently quite like their first company financed, developed and produced feature film Iron man.
Marvel’s Super Human Earnings
With the help of Iron Man and their overall new “hands on” business approach, I expect Marvel to have continued success going forward.
During Iron Man’s opening weekend, the company brought in over $1 million through U.S. box offices, as well as over $200 million worldwide. Sure, these numbers sound fantastic, but they sound even better when you consider that this is the second-biggest opening ever for a non-sequel film. With several future movie plans in the works, who knows, Marvel may just beat out the previous Box Office Superhero, Spiderman. Already the company received rave reviews from a variety of film critics ensuring that there will indeed be a much-awaited Iron Man 2!
On May 5, Marvel released analyst-beating first-quarter earnings. With most of Wall Street expecting very little of
Marvel this quarter, they easily surpassed the anticipated 43 cents per share and reported earnings of 58 cents per share. To be honest, most people probably thought I was playing with fire when I added Marvel to my Quantum Growth Buy List.
But, with the release of Iron Man this year and Iron Man 2 schedule for 2010, analysts are perking up their interest and raising their expectations. Currently anyone who has done his or her stock research homework will tell you just how wonderful Marvel is right now. Oh, how analysts love to change their tunes. On average they now expect the company to have annualized earnings growth of 17.5% over the next five years. This is a fantastic forecast!
To add icing to the cake, just last Thursday Marvel signed an exclusive licensing agreement with THQ to develop video games based off to the company’s superheroes. This is just icing on the cake for both Marvel and my benefiting Quantum Growth subscribers.
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