Dun & Bradstreet Corporation (NYSE: DNB) is a leading source of business information. Its global commercial database contains more than 130 million business records, including the largest volume of business-credit information in the world. The firm integrates the data in a variety of software products and Web-based applications that customers use to support a broad spectrum of business decisions. Dun & Bradstreet also offers marketing information and purchasing-support services.

The company pleased investors last week, when it guided Q2 EPS to $1.15 and Q2 revenues to $427.7 million. Analysts had been expecting $1.10 and $414.04 million. Management also anticipated FY08 EPS of $5.19-$5.29, versus Street consensus of $5.28.

The stock popped on the news and then moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling on entry. In this case, that would be to the upside.

Brokers recommend the shares with three "buys" and one "hold." Analysts expect a 15% average annual growth rate, through the next five years. The DNB P/E ratio (18.61), PEG ratio (1.29), Operating Margin (27.43%), Net Profit Margin (17.83%) and Return on Assets (19.11%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 86% of the outstanding shares. The stock is one of those used to calculate the S&P 400 MidCap Index. Over the past 52 weeks, it has traded between $79.02 and $108.45. A stop-loss of $83.00 looks good here. Note that the firm is expected to report final Q2 results on July 31st, after the close.

Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold a position in the stock discussed above.