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Crunching the Numbers on ComScore

Tuesday, 2 Oct 2007 | 7:55 PM ET

All week, Cramer is highlighting stocks that came public during the market turmoil this past summer. He figures a few gems were overlooked and, now that things have settled, it’s time to dig up these companies.

ComScore hit the Nasdaq in early June to thunderous silence, which is not the kind of attention a stock in mega-growth sector the internet should get. Especially considering the fact that, unlike a lot of IPOs, SCOR is already profitable and has great earnings visibility.

Think of comScore as the Nielsen of the web. It measures all the internet’s raw data on usage and behavioral and transactional trends. So while a business can easily measure its own site’s traffic, comScore allows a company to find out what’s happening online everywhere. It helps advertisers answer questions like: Where is our target audience surfing? What types of strategies are working? Where should we put our money?

SCOR has a 57% growth rate for next year and 31% for the long term. With numbers like that, investors should be willing to pay 50 or 60 times earnings, Cramer said, but the stock still sells for only 38 times next year’s earnings. Even a “comic-relief stock” like Yahoo! gets a 48 multiple.

Even if comScore doesn’t end up being the next AECOM, another under-the-radar winner from this past summer, Cramer said it’s still a great internet media play that’s dirt cheap based on growth.

“If you ask me, I'm putting it in the unquestionable-buy category,” he said.

Questions for Cramer? madmoney@cnbc.com

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