Shares of job board Monster.com are experiencing new gains since Wall Street reevaluated the job site after its purchase of rival HotJobs from Yahoo, according to Reuters.
In August, shares sold for $10.01. Since the purchase, in which Monster bought HotJobs for $225 million in cash last February, shares have more than doubled to $22.
A stronger-than-expected quarterly earnings report also buoyed the job site in Wall Street estimates.
According to Reuters, the stock has “far outperformed both its Internet and staffing industry peers.”
But the question is raised, do fundamentals justify a valuation of nearly $3 billion?
Reuters credits Monster for curbing costs during the recession, enhancing its job search technology, and exploring other lucrative markets like China.
But these aren’t the only market shifts the job board has capitalized upon. Reuters notes, “[Monster] also benefits from the shift of classified advertising from newspapers and an instantly recognizable brand name, its familiarity bought with years of expensive Super Bowl ads.”
Still, Monster is tempered by an environment of “modest growth” and small job increases, coupled with a very competitive recruiting market.
Among analysts who follow the stock, seven rate Monster “buy” or “outperform,” five rate it “hold” and three rate it “sell or “underperform,” according to Reuters data.