Is GoDaddy A Buy In 2021?

Its  net income increased 16.5% year-over-year to $70.50 million for the fourth quarter, while its  EPS increased 20.6% year-over-year to $0.41.

Favorable Analyst Estimates

Analysts expect GDDY’s revenues to increase 11.7% in fiscal 2021 and 10.2% in fiscal 2022. Its EPS is expected to grow 33.3% for the current quarter, ending March 31, 2021, 153.4% in fiscal 2021 and at a rate of 80% per annum over the next five years.

Wall Street analysts expect the stock to hit $96.71 in the near term, which indicates a potential upside of 19%.

POWR Ratings Show Promise

GDDY has an overall rating of B, which equates to Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors with each factor weighted to an optimal degree.

Our proprietary rating system also evaluates each stock based on eight different categories. GDDY also has a B grade for Quality, which is  in sync with its trailing-12-month gross profit margin of 65.1%, which is higher than the industry average  48.4%.

The stock’s 13.7% gains over the past three years and 39.8% gains over the past year has helped it secure a B grade for Momentum also.

We have also graded GDDY for Growth, Value, Stability and Sentiment. Get all GDDY’s ratings here.

GDDY is ranked #9 of 44 stocks in the Internet – Services industry.

Click here to access 10 other top-rated stocks in the same industry.

Bottom Line

As the COVID-19 pandemic-driven remote lifestyle is expected to continue even in the post-pandemic environment, several businesses have been creating or improving their online presence to attract consumers. GDDY is well-positioned to gain from this trend and we expect it  to witness increasing demand for its services in the upcoming months.

GDDY shares were trading at $73.27 per share on Monday afternoon, up $0.86 (+1.19%). Year-to-date, GDDY has declined -11.67%, versus a 5.26% rise in the benchmark S&P 500 index during the same period.

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