CARB - Carbonite, Inc.

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
24.38
+0.26 (+1.08%)
At close: 4:00PM EDT
Stock chart is not supported by your current browser
Previous Close24.12
Open24.03
Bid23.63 x 800
Ask24.99 x 1300
Day's Range23.86 - 24.51
52 Week Range21.84 - 43.63
Volume338,204
Avg. Volume556,754
Market Cap837.828M
Beta (3Y Monthly)0.77
PE Ratio (TTM)110.82
EPS (TTM)0.22
Earnings DateMay 6, 2019 - May 10, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est36.82
Trade prices are not sourced from all markets
  • The Case for FireEye Stock Isn’t Strong Enough to Make It a Buy
    InvestorPlaceyesterday

    The Case for FireEye Stock Isn’t Strong Enough to Make It a Buy

    If you look closely, there are signs of progress at FireEye (NASDAQ:FEYE). The cybersecurity company has been a disappointment, admittedly: FireEye stock once traded above $90, and now changes hands at $16. But FireEye generally has performed well in the past couple of years, and there's reason to see further improvements ahead.Source: David via Flickr (Modified)Growth in billings (which back out deferred revenue changes) shows demand is increasing, particularly as the company shifts from appliances to software. Operating margins are exceedingly thin, just 3% on an adjusted basis in 2018, which means earnings can jump sharply with even modest expansion.An ~80x multiple to the midpoint of 2019 EPS guidance makes it seem like FEYE stock is pricing in massive growth, but that's not quite the case. Margins can easily double or triple, which alone can move earnings substantially higher in coming years.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut even with that case, and even with FireEye stock basically flat YTD, it's difficult to get too excited. Margin expansion looks priced in. So does decent billings growth. That's particularly true when considering stock-based compensation and the fact that investors shouldn't be willing to trust FireEye just yet. * 10 S&P 500 Stocks to Weather the Earnings Storm The Case for FireEye StockOn its face, FireEye stock looks ridiculously expensive. Multiples of 4x+ EV/revenue and ~80x earnings hardly seem fitting for a company that at the midpoint of guidance expects billings to grow 7%+ in 2019 - and revenue just 6.5%.Indeed, that guidance was disappointing, and it was the key reason why FEYE fell 12% after Q4 earnings back in February. But even with modest top-line growth, there's still a case that FireEye stock can grow into its valuation. Operating margins last year, as noted, were just 3%.That was a 300 bps improvement over the ~flat figure posted the year before. Full-year guidance projects margins this year of 5-6% - continuing the positive trend.Combine a move to 9-10% margins along with revenue growth and FireEye earnings double in relatively short order. Indeed, FEYE stock jumped last month when JPMorgan Chase (NYSE:JPM) analysts upgraded the stock for similar reasons. The firm saw revenue growth accelerating thanks to product improvements - which should leverage operating expenses and continue margin expansion.JPMorgan also pointed out that the shift to software impacts reported revenue and earnings, since upfront sales are recognized over the course of the contract. The firm said billings and cash flow were better metrics. Indeed, FireEye's free cash flow guidance for 2019 suggests generation of $50-$60 million. That's a more reasonable 58x P/FCF multiple at the midpoint.Double that thanks to margin expansion, and continue high-single-digit billings growth into the future, and FEYE can grow into, and beyond the current valuation. The firm gave FireEye stock a price target of $20, which is line with the average Street target at the moment, and suggests over 20% upside. The Case Against FireEye StockThere are reasons for caution, however. For one, it's not guaranteed that margins are going to expand continuously or at least at the same rate as seen in 2018 and 2019. Management did say on the Q4 conference call that it expected headcount to stay relatively flat this year.That's not necessarily going to be the case going forward. FireEye isn't guaranteed to get two or three points of operating leverage each year. If it doesn't, earnings growth might not be good enough. To drive upside, FireEye has to at least get EPS moving toward the $1 level. It's guided to just $0.17-$0.21 this year. Something like 200-300% growth is easily priced in already, and if margin expansion slows, that type of growth is going to take several years.The second issue is that cybersecurity is a tough space with no shortage of options. Indeed I called out 5 cybersecurity stocks for investors of varying styles earlier this month. Palo Alto Networks (NYSE:PANW) is the clear industry leader. ProofPoint (NASDAQ:PFPT) is the hot young growth stock. Carbonite (NASDAQ:CARB) offers a turnaround story of its own.There are plenty of reasons to like the sector but the plethora of options suggests investors can find an easier, better-priced bull case than the one offered by FEYE.Finally - as is so often the case in tech - there's the issue of stock-based compensation. FireEye is targeting operating margins of 5-6% next year, and $50-$60 million in free cash flow. Stock-based compensation last year was $153 million, over 18% of revenue.Even if that figure falls in 2019, it significantly colors non-GAAP results (from which the compensation is excluded). Is FireEye really generating mid-single-digit margins? Is it really generating $50M+ in free cash flow? Or is just accomplishing those feats by diluting shareholders? Good, but Not GreatThe underlying story when it comes to FireEye makes some sense, admittedly. Margins should get better. Billings growth should continue - and may even accelerate.But even with FEYE lagging the market so far this year, the valuation really isn't compelling. There's still a lot of work left to do in terms of building margins and a long time for investors to wait. Competition is going to be intense, and it's tough, as yet, to call out FireEye as a clear leader. Given all that, in a hot sector, it seems like there are better choices out there.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks to Buy for Spring Season Growth * This Is How You Beat Back a Bear Market * 7 Dental Stocks to Buy That Will Make You Smile Compare Brokers The post The Case for FireEye Stock Isn't Strong Enough to Make It a Buy appeared first on InvestorPlace.

  • Carbonite (CARB) Stock Sinks As Market Gains: What You Should Know
    Zacks3 days ago

    Carbonite (CARB) Stock Sinks As Market Gains: What You Should Know

    Carbonite (CARB) closed the most recent trading day at $25.09, moving -1.18% from the previous trading session.

  • Is Carbonite, Inc.'s (NASDAQ:CARB) 2.9% ROE Worse Than Average?
    Simply Wall St.8 days ago

    Is Carbonite, Inc.'s (NASDAQ:CARB) 2.9% ROE Worse Than Average?

    Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). By way of learning-by-doing, we'll look at ROE...

  • Business Wire9 days ago

    Carbonite Charitable Fund Reinvests in STEM Education

    Today, Carbonite, Inc. (CARB) a global leader in data protection, announced that the Carbonite Charitable Fund will renew investments in its inaugural nonprofit partners, in addition to providing a grant to one new organization, all creating opportunities for students in Science, Technology, Engineering and Math (STEM). The mission of the Carbonite Charitable Fund is to support organizations that equip students with STEM skills and empower them to make positive contributions to their communities. Since its inception in 2018, the Carbonite Charitable Fund has awarded grants to six organizations that align with this vision in the geographies in which Carbonite operates.

  • Top Stock Picks for April 8, 2019
    Zacks10 days ago

    Top Stock Picks for April 8, 2019

    Two Service Companies Worth Looking At.

  • Moody's15 days ago

    Carbonite, Inc. -- Moody's announces completion of a periodic review of ratings of Carbonite, Inc.

    Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Carbonite, Inc. New York, April 04, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Carbonite, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.

  • 5 Cybersecurity Stocks to Watch As the Trend Heats Up
    InvestorPlace15 days ago

    5 Cybersecurity Stocks to Watch As the Trend Heats Up

    Cybersecurity stocks have been among the best stocks in the market in recent years. The ETFMG Prime Cyber Security ETF (NYSEARCA:HACK) has gained 69% in the past three years -- easily outperforming the broader market.There are plenty of reasons to believe that outperformance will continue. After all, high-profile data breaches continue to occur. This week, for instance, TechCrunch reported that privately held Arizona Beverages was the victim of a crippling ransomware attack. The incident is yet another lesson that companies cannot cut corners when it comes to security protection. * 10 Medical Marijuana Stocks to Cure Your Portfolio To be sure, investors are aware of the trend. Cybersecurity stocks aren't cheap. But for investors willing to pay up, the sector is large enough to offer a variety of options. These five cybersecurity stocks offer different bull cases for different types of investors.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Palo Alto Networks (PANW)Source: Shutterstock Palo Alto Networks (NYSE:PANW) might be the simplest, "set it and forget it", play among cybersecurity stocks. Palo Alto has successfully transitioned away from a reliance on hardware and jumpstarted growth in the process. Revenue in the fourth quarter, for instance, rose over 30% year-over-year, crushing analyst estimates.At the moment, Palo Alto is the largest cybersecurity play … and the most diversified. If the market as a whole continues to grow, Palo Alto Networks should benefit.That said, there are concerns, as I wrote after earnings. PANW stock isn't cheap. And we've seen the cloud story break down elsewhere as spending has slowed. PANW is the biggest stock in the space, and it has the simplest bull case. It's going to rise if its market keeps growing. But at this point, it may be one of the better cybersecurity stocks, but not necessarily one of the best stocks in the space. Symantec (SYMC)Source: Shutterstock As noted earlier, cybersecurity stocks aren't cheap, and value plays are hard to find. Symantec (NASDAQ:SYMC) might be the cheapest stock in the space, but there are reasons.Growth has stalled out. Fiscal 2019 guidance, which disappointed and then was pulled further down, suggests a year-over-year decline in revenue and earnings. An accounting investigation has only added to the pressure on SYMC stock. A continuing reliance on PC-related revenue makes the stock less exposed to growth on the enterprise side of the industry.That said, SYMC has a path to upside. Private equity firm Thoma Bravo has reportedly considered acquiring the company. Symantec itself is making acquisitions to build out its enterprise business, acquiring Israeli cloud security provider Luminate Security in February. * 10 Stocks That Every 30-Year-Old Should Buy and Hold Forever And the stock is cheap, at 13x next year's earnings-per-share estimates. If Symantec can continue to build out its enterprise business, that valuation might be far too low. Secureworks (SCWX)Source: Shutterstock Secureworks (NASDAQ:SCWX) is one of the best stocks in the sector for traders. Secureworks focuses on software-driven solutions, predominantly through a SaaS (software-as-a-service) model.And SCWX stock might be in play. Dell Technologies (NASDAQ:DELL) owns 86% of the company and is looking to pay down debt. Reuters reported in February that Dell was considering a sale, which might make some sense. Secureworks isn't as material to the Dell business as VMWare (NYSE:VMW) and it might perform better as an independent company or as part of a larger security provider.Meanwhile, SCWX stock has pulled back of late and it looks cheap enough to garner some interest. Profits are still miniscule, but revenue is growing -- and an acquirer might be willing to pay a premium to the current sub-3x price-to-sales multiple. SCWX's opportunity is solid enough on its own long-term, but there's a decent chance a buyout offer could spike SCWX stock in 2019. ProofPoint (PFPT)Source: Shutterstock For investors who like chasing growth, the cybersecurity sector has some of the best stocks. One of them is Proofpoint (NASDAQ:PFPT). Proofpoint continues to post huge increases in revenue and profits, with sales up 35% in Q4. As a result, PFPT has rallied strongly, gaining 47% already in 2019. * 7 Energy ETFs That Could Be Running Out of Fuel At current levels, PFPT is challenging all-time highs. And it's not cheap, at 9x revenue and 55x forward EPS estimates. But there's room for upside from a technical perspective if the stock can bust through resistance. And there's room for upside from a fundamental perspective too … if its current growth continues. Investors willing to pay up for growth should take a long look at PFPT stock. Carbonite (CARB)Source: Shutterstock For investors who appreciate business transformations, meanwhile, Carbonite (NASDAQ:CARB) might be the play. Carbonite started as a largely consumer-focused company. But it has expanded into small and medium businesses with help from an aggressive M&A strategy.That strategy continued this year, with the recently closed $619 million acquisition of Webroot. Yet even with those deals driving growth, CARB looks reasonably cheap. Pro forma for the Webroot purchase, the stock trades at 11-12x 2019 EBITDA guidance. Looking to 2020, analysts see well over $2 per share in EPS.With a sharp pullback of late, that suggests just an 11x forward EPS multiple. That might be far too cheap -- particularly if the strategy here is on point. While larger rivals chase larger deals, Carbonite might be able to create value by chasing smaller fish.As of this writing, Vince Martin was long shares of Dell Technologies. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 5 Low-Priced Tech Stocks With Great Potential * 9 Stocks That Would Be Hurt By a Mexico/U.S. Border Closure * The Era of Car Ownership Is Over. And These 4 Charts Prove It Compare Brokers The post 5 Cybersecurity Stocks to Watch As the Trend Heats Up appeared first on InvestorPlace.

  • Zacks.com featured highlights include: VALE, Second Sight, Carbonite, Arconic and vTv
    Zacks15 days ago

    Zacks.com featured highlights include: VALE, Second Sight, Carbonite, Arconic and vTv

    Zacks.com featured highlights include: VALE, Second Sight, Carbonite, Arconic and vTv

  • Get Over Bargain Hunting: Tap 5 Stocks With Rising P/E
    Zacks16 days ago

    Get Over Bargain Hunting: Tap 5 Stocks With Rising P/E

    Bet on these top-ranked stocks with rising P/E to realize outsized gains.

  • Carbonite closes $618.5M acquisition of Colorado-based Webroot
    American City Business Journals24 days ago

    Carbonite closes $618.5M acquisition of Colorado-based Webroot

    “The combination of these two companies creates a unique and powerful data protection and cybersecurity solution for our customers and partners."

  • Business Wire24 days ago

    Carbonite Closes Acquisition of Webroot

    Transaction combines data backup and recovery technology with cybersecurity platform to deliver complete data protection for customers and their endpoints

  • Carbonite (CARB) Stock Moves -1.49%: What You Should Know
    Zacks28 days ago

    Carbonite (CARB) Stock Moves -1.49%: What You Should Know

    In the latest trading session, Carbonite (CARB) closed at $24.40, marking a -1.49% move from the previous day.

  • Carbonite, comScore, Micron Technology, Guess and Williams-Sonoma highlighted as Zacks Bull and Bear of the Day
    Zacks29 days ago

    Carbonite, comScore, Micron Technology, Guess and Williams-Sonoma highlighted as Zacks Bull and Bear of the Day

    Carbonite, comScore, Micron Technology, Guess and Williams-Sonoma highlighted as Zacks Bull and Bear of the Day

  • Bull Of The Day: Carbonite (CARB)
    Zacks29 days ago

    Bull Of The Day: Carbonite (CARB)

    Bull Of The Day: Carbonite (CARB)

  • Zacks.com featured highlights include: Catabasis, Ligand, Key, Carbonite and Second Sight
    Zackslast month

    Zacks.com featured highlights include: Catabasis, Ligand, Key, Carbonite and Second Sight

    Zacks.com featured highlights include: Catabasis, Ligand, Key, Carbonite and Second Sight

  • CARB vs. VRTU: Which Stock Is the Better Value Option?
    Zackslast month

    CARB vs. VRTU: Which Stock Is the Better Value Option?

    CARB vs. VRTU: Which Stock Is the Better Value Option?

  • Rising P/E an Overlooked Criterion: 5 Top Stocks
    Zackslast month

    Rising P/E an Overlooked Criterion: 5 Top Stocks

    Want to try an out-of-the-box approach? Tap five stocks with increasing P/E ratio.

  • Zacks.com featured expert Kevin Matras highlights: Columbia Sportswear, Tactile Systems Technology, Wright Medical, Carbonite and Palo Alto Networks
    Zackslast month

    Zacks.com featured expert Kevin Matras highlights: Columbia Sportswear, Tactile Systems Technology, Wright Medical, Carbonite and Palo Alto Networks

    Zacks.com featured expert Kevin Matras highlights: Columbia Sportswear, Tactile Systems Technology, Wright Medical, Carbonite and Palo Alto Networks

  • Play Potential Earnings Beat With These 5 Top Stocks
    Zackslast month

    Play Potential Earnings Beat With These 5 Top Stocks

    These top-ranked stocks are likely to beat on the bottom line in their next release.

  • New Strong Buy Stocks for March 7th
    Zackslast month

    New Strong Buy Stocks for March 7th

    New Strong Buy Stocks for March 7th

  • Carbonite (CARB) Looks Good: Stock Adds 8.7% in Session
    Zackslast month

    Carbonite (CARB) Looks Good: Stock Adds 8.7% in Session

    Carbonite (CARB) saw a big move last session, as its shares jumped nearly 9% on the day, amid huge volumes.

  • Moody'slast month

    Carbonite, Inc. -- Moody's assigns first-time B2 CFR to Carbonite in connection with acquisition of Webroot; outlook positive

    Moody's Investors Service ("Moody's") assigned a B2 Corporate Family Rating and B2-PD Probability of Default Rating to Carbonite, Inc. ("Carbonite") in connection with the pending acquisition of Webroot Inc. and issuance of new credit facilities. Moody's also assigned a B1 instrument rating to the senior secured first lien credit facilities ($175 million revolver and $550 million term loan).