EarthLink Inc. (NASDAQ: ELNK) was named as the Focus Stock of the Week by S&P Capital IQ. EarthLink now has a 5-STARS or Strong Buy rating. Strengths are as follows:
- transformed from a consumer-centered ISP to a valuable Internet Protocol asset owner;
- managed churn and healthy cash flows from consumer ISP despite ongoing declines;
- made key acquisitions that will lead to sustainable and profitable growth;
- investing public does not fully understand nor appreciate the changes which have been made;
- notably undervalued based on a variety of more traditional and less traditional metrics;
- compelling value;
- dividend yield of 3.4%.