As we pass through the twenty-first century, some of the traditional public relations methods are being put aside in favor of internet-enabled approaches. A pioneer in expanding the frontiers along that line is headquartered in Lanham, Maryland.

Vocus Inc. (NASDAQ: VOCS) provides on-demand software for public relations management. The company's programs address such functions as media relations, news distribution, news monitoring and analysis. Its government relations software offers state and federal legislative contact lists and lobbying analysis tools. The service is delivered as an annual subscription, with no need for internal hardware, software or IT support. Vocus is used by over 1,800 not-for-profit, corporate, government and public relations organizations worldwide and is available in five languages. Clients include Southwest Airlines (NYSE: LUV), Goodwill Industries and the Humane Society of the United States. The firm has established partnerships with Google (NASDAQ: GOOG) and Microsoft (NASDAQ: MSFT).

Vocus had good news for investors last week, when it reported Q2 EPS of $0.11 and revenues of $14.08 million. Analysts had been looking for $0.09 and $13.46 million. Management also guided Q3 EPS to $0.10-$0.11 ($0.10 consensus), Q3 revenues to $14.3-$14.5 million ($14.30M consensus), FY07 EPS to $0.44-$0.46 ($0.43 consensus) and FY07 revenues to $56.3-$56.7 million ($55.98M consensus). The stock popped into a bullish "flag" consolidation pattern on the news. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.

Brokers recommend the shares with two "strong buys," three "buys" and one "hold." Analysts see a 28% growth rate, through the next year. The VOCS Sales Growth rate (53.0%) and EPS Growth rate (175.0%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 55% of the outstanding shares. Over the past 52 weeks, the stock has traded between $14.70 and $30.53. A stop-loss of $23.25 looks good here.

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