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3 Reasons QNST Has Explosive Upside Potential

QNST Cover Image

Over the last six months, QuinStreet’s shares have sunk to $14.52, producing a disappointing 5.6% loss - a stark contrast to the S&P 500’s 10% gain. This might have investors contemplating their next move.

Following the pullback, is now an opportune time to buy QNST? Find out in our full research report, it’s free.

Why Are We Positive On QNST?

Founded during the dot-com era in 1999 and specializing in high-intent consumer traffic, QuinStreet (NASDAQ: QNST) operates digital performance marketplaces that connect clients in financial and home services with consumers actively searching for their products.

1. Skyrocketing Revenue Shows Strong Momentum

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Thankfully, QuinStreet’s 16.9% annualized revenue growth over the last five years was incredible. Its growth beat the average business services company and shows its offerings resonate with customers.

QuinStreet Quarterly Revenue

2. EPS Increasing Steadily

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

QuinStreet’s EPS grew at a solid 9.9% compounded annual growth rate over the last five years. This performance was better than most business services businesses.

QuinStreet Trailing 12-Month EPS (Non-GAAP)

3. Increasing Free Cash Flow Margin Juices Financials

Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king.

As you can see below, QuinStreet’s margin expanded by 4 percentage points over the last five years. The company’s improvement shows it’s heading in the right direction, and we can see it became a less capital-intensive business because its free cash flow profitability rose while its operating profitability fell. QuinStreet’s free cash flow margin for the trailing 12 months was 9.6%.

QuinStreet Trailing 12-Month Free Cash Flow Margin

Final Judgment

These are just a few reasons why QuinStreet ranks highly on our list. With the recent decline, the stock trades at 12× forward P/E (or $14.52 per share). Is now a good time to initiate a position? See for yourself in our in-depth research report, it’s free.

Stocks We Like Even More Than QuinStreet

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The names generating the next wave of massive growth are right here in our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

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