More and more folks these days are snagging education credits via the Web. A leading developer of the software that allows for such non-corpus participation is headquartered in Washington, DC.

Blackboard (NASDAQ: BBBB) develops Internet software that connects teachers and students for classes, assignments and online collaboration. The programs also include transaction, community and payment management tools that enable students to use their school IDs for meals, event admissions and tuition payments. Blackboard serves the K-12 and postsecondary education markets.

The firm surprised the Street last week, when it reported Q1 EPS of seven cents and revenues of $55.3 million. Analysts had been expecting five cents and $53.6 million. Management also guided Q2 EPS to 8-10 cents (7 cent consensus), Q2 revenues to $58-$59 million ($57.20M consensus), FY07 EPS to 35-41 cents (39 cent consensus) and FY07 revenues to $233-$236 million ($234.32M consensus). First Albany and Wedbush Morgan subsequently reiterated "buy" ratings on the stock. Shares popped above 30-day/50-day moving average support on the news and began consolidating the gain in a bullish "pennant" pattern. Equities frequently exit pennants moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Altogether, brokers recommend the issue with five "strong buys," four "buys" and two "holds." Analysts see a 39% growth rate, through the next year. The BBBB Sales Growth rate (46.63%) and EPS Growth rate (1700%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 89% of the outstanding shares. Over the past 12 months, the stock has traded between $22.78 and $40.06. A stop-loss of $33.75 looks good here.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com.