Shutterfly(SFLY) is a stock i have talked about(on the Week Ahead Webinar and in the Chatroom) and traded quite a bit over the past few years. It's a stock I like and think it continues to be under-appreciated in the investment community. Similar to OpenTable(OPEN), its leader in a niche market that has competition yet continues to be extremely resilient, an example of which is it's 51 straight quarters of YOY revenue growth.
2013 saw Shutterfly(SFLY) grow revenues 22%, and the outlook for 2014 is no different, with a forecast of 17% growth. Despite the continued growth, the stock is down over $20 from its $59.93 high in August of 2013 erasing $780 million from the companies valuation, which currently stands at $1.5 billion.The companies expects to do $900-$920 million in revenues in 2014, which means it currently trades at just 1.6x's revenue.
The stock is down 22% to start 2014, and think it provides a nice risk/reward scenario for some out of the money June calls. Earnings after the close could also be the catalyst to get the stock back on course.