12.64 0.00 (0.00%)
After hours: 4:00PM EDT
|Bid||12.50 x 2200|
|Ask||12.94 x 1800|
|Day's Range||12.57 - 13.41|
|52 Week Range||12.57 - 43.63|
|Beta (3Y Monthly)||0.57|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Buy low and sell high – it’s an old saw, true, but it’s still the surest way to turn a profit in the markets. The hard part, of course, is knowing just what to buy when it’s low. Not all low-cost stocks are created equal, and a savvy investor needs to know how to sort out the potential winners for his portfolio.Here, we look at three stocks have taken a beating in recent months but retain their Buy rating. The reasons vary, as do the industries and business models, but all three have three features in common: an entry cost below $15 per share, a low-end price target well above the current share price, and a huge upside potential.Let's take a closer look:Carbonite, Inc. (CARB)The cloud backup company took two hard hits at the end of last month, when it reduced full-year revenue and earnings guidance the same week that CEO Mohamad Ali announced his pending departure. Investors generally don’t like getting reams of bad news all at once, and CARB shares fell from $23.90 to $18.01. The stock has been slipping slowing ever since, and currently stands at $14.48.There was good news, however. Q2 GAAP revenues jumped to $121.5 million, a gain of 56%, and the adjusted EPS of 56 cents was 16% higher than the 47-cent expectation. Gross margins improved, too, from 77.1% in the year-ago quarter to 82.3% in Q2 2019.While the CEO has left, his place has been taken on an interim basis by Board chairman Steve Munford. In a statement on the company’s path forward, Munford said, "We remain committed to capitalizing on the opportunity of combining data protection and security, while we improve the effectiveness of our go-to-market efforts and deliver on our profitability targets." It’s a good note of continuity, which investors like.Some of Wall Street’s top analysts also like what they see in Carbonite, although they are cautious enough to lower their price targets. Northland Capital Markets’ Tim Klasell, a 5-star analyst, says, “We are reducing our top line in response [to Q2 revenue numbers], but cost synergies from the Webroot acquisition are protecting the bottom line. The CEO has left for a new opportunity, which raises the possibility of a strategic move.” With the company’s bottom line safe for now, and the way open for new ideas at the top, Klasell gives CARB a Buy rating with a $30 price target, suggesting a 107% upside from current levels. (To watch Klasell's track record, click here)John DiFucci, of Jefferies, is more cautious but still bullish. He has lowered his price target from $37 to $29, but still sees a 100% upside to the stock. He describes Carbonite as “Consistently Inconsistent,” but adds that, “the stick will work if the company can hit numbers and the post-earnings selloff brings an attractive valuation.” DiFucci is also a 5-star analyst, and rated 27 overall in the TipRanks database.Carbonite’s analyst consensus is a Moderate Buy, based on 5 buys, 2 holds, and 1 sell. The average price target of $26.75 gives an upside potential of 84% from the current share price of $14.48.Kala Pharmaceuticals, Inc. (KALA)Our next example of an undervalued stock with great potential is KALA. A small-cap pharma company, Kala Pharmaceuticals released its first drug – Inveltys, an eye drop to relieve pain and swelling after ocular surgery – to the markets early this year, and analysts expect its annual sales will peak near $300 million. Not bad, for a company with a market cap of just $136 million.So why has KALA’s share price dropped 71% in the past 12 months, from its peak at $13.87 last August to just $4 at Friday’s close?The answer may lie in the nature of biopharma investing, and the heightened expectations around the sales of new drugs. Inveltys’ slow start in the market is hardly out of the ordinary; medical research and drug development are capital intensive, and it generally takes several quarters before a new pharmaceutical begins to turn a profit. The investors are not worried about Kala’s red ink, so much as they are worried by the disparity between the $2.06 million in Q2 Inveltys revenue and the $2.69 million of the average estimate. Going forward, profit estimates grow, reaching $14 million for full-year 2019 and over $70 million for 2020. By the early indications, Inveltys will have difficulty meeting those numbers.On the other hand, prescription numbers are moving in the right direction. Kala disclosed 11,000 Inveltys scrips in Q1, and 31,000 in Q2. The June quarter ended with Inveltys holding 6.8% market share in a crowded environment. More importantly, insurance plans covering a total of 92 million people have added Inveltys to their benefits lists.Several Wall Street analysts see Kala’s growth potential outweighing its near-term risk. Speaking for the bulls, H. C. Wainwright’s Yi Chen says, “In our view, INVELTYS still has plenty of room for growth within the market of 4.8M cataract surgery procedures each year in the U.S. However, we have lowered the growth rate for INVELTYS revenue to reflect current market conditions given the entry of new competitors into the marketplace.” He may be cautious, but his price target and upside reflect the profit potential of the biopharma industry; at $12, the target suggests a 200% upside. (To watch Chen's track record, click here)Wedbush analyst Liana Moussatos agrees with Chen about KALA’s potential, and then some. Writing, “We reiterate our OUTPERFORM rating,” she sets a 12-month price target of $51, implying a whopping 1,175% upside to the shares.Despite KALA’s near-term risk, the stock holds a unanimous Strong Buy on the analyst consensus, with 3 buy ratings given in the last two weeks. Shares are selling for a low $4, but the average price target of $24 suggests an upside potential of 500%. It’s an indication of the high profits possible in the biotech industry.Superior Industries International, Inc. (SUP)Our third stock today may surprise you – it’s an industrial company, part of the supply chain for Detroit’s auto industry. The Motor City may not be what it once was, but it’s hardly down and out, and whether they go electric, alt fuel, or stick with gasoline, cars are always going to need wheels.That’s where Superior comes in. SUP is the leading manufacturer and supplier of cast aluminum wheels to the auto makers. Slowing net sales have led to declines in year-over-year income, however, and the company is facing a rough time. On the positive side, SUP showed a strong positive cash flow in Q2, and paid down $26.1 million in debt principal. CEO Majdi Abulaban said, of Q2, “In light of the persistent volume weakness, we are taking action to right size costs... As a result of these actions, we have reduced production schedules in certain facilities and realized an improvement in working capital and cash flow, which supported sizeable debt principal reductions in the second quarter… We are confident that the initiatives we are implementing, including reducing capital expenditures, will further enhance cash generation for continued debt paydown in 2019.”Watching from Wall Street, B. Riley FBR analyst Christopher Van Horn agrees that SUP has an upbeat outlook going forward. He writes, “We recognize that the company is exposed to production decreases in both North America and Europe. However, our thesis revolves around the company’s ability to manage a difficult top- line environment through better execution on the operating line. We are maintaining our Buy recommendation given that we think the company can improve their sales mix as program launches this year are likely on larger SUVs with higher priced wheels.”Van Horn gives SUB shares a $9 price target to go along with his buy rating, indicating confidence in a high 287% upside to the stock. (To watch Van Horn's track record, click here)Overall, SUP maintains a Moderate Buy from the analyst consensus, based on 2 buys assigned in the last 10 days. The stock sells for only $2.32, so the average price target, $8, suggests a potential upside of 244%.
Even the best stock pickers will make plenty of bad investments. And there's no doubt that Carbonite, Inc...
Financial analysts say they aren't concerned for the future of the cloud backup company without now-former CEO Mohamad Ali, calling its recent Webroot acquisition a “game-changer.”
Carbonite (NASDAQ:CARB) rolled out its latest quarterly earnings results early Friday, amassing results that were mixed overall, while the company's 2019 outlook left something to be desired, pushing CARB stock downward.Source: Shutterstock The Boston, Mass.-based company announced fiscal 2019 second-quarter results that include a loss of $11.3 million, or 33 cents per share. When adjusting for one-time gains and costs, the company brought in a profit of 56 cents per share during the three-month period.This marked a 24.4% gain when compared to Carbonite's profit from the same quarter a year ago. Wall Street was calling for the company to bring in an adjusted profit of 47 cents per share, according to a survey of five analysts compiled by Zacks Investment Research.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOn the revenue side of things, the business brought in adjusted sales of $135.05 million, which was a touch below the Wall Street consensus guidance, according to the Zacks poll-non-adjusted revenue was $121.5 million. This amount is stronger than the $77.73 million that Carbonite amassed during its second quarter of 2019.For the current quarter, the business is calling for sales in the range of $131 million and $133 million. For the fiscal year, Carbonite predicts revenue somewhere between $477.5 million and $482.5 million.The company has topped the consensus earnings per share guidance four times during the last four quarters.CARB stock is sinking about 23.6% on Friday following these results. More From InvestorPlace * 7 Oversold Stocks To Buy Right Now * 7 Stocks to Sell This Summer Earnings Season * 10 Stocks to Buy From This Superstar Fund * 7 Defense Stocks to Buy to Fortify Your Portfolio The post Carbonite Earnings: CARB Stock Crumbles on Mixed Q2, Weak Outlook appeared first on InvestorPlace.
Mohamad Ali said Thursday that he's stepping down from his role as president, CEO and board member of Boston-based tech company Carbonite and joining Boston-based technology media company International Data Group Inc., or IDG, as CEO.
Carbonite (CARB) delivered earnings and revenue surprises of 19.15% and -0.19%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?
Carbonite (CARB) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
As we already know from media reports and hedge fund investor letters, many hedge funds lost money in fourth quarter, blaming macroeconomic conditions and unpredictable events that hit several sectors, with technology among them. Nevertheless, most investors decided to stick to their bullish theses and recouped their losses by the end of the first quarter. […]
Carbonite (CARB) delivered earnings and revenue surprises of 18.92% and 7.09%, respectively, for the quarter ended March 2019. Do the numbers hold clues to what lies ahead for the stock?
The Boston-based company said it had net income of 6 cents per share. Earnings, adjusted for one-time gains and costs, were 44 cents per share. The results topped Wall Street expectations. The average ...
Carbonite (CARB) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Read the beginning of this article here. The most valuable position in Harvest Capital Strategies’ portfolio at the end of the last quarter of 2018 was in Palo Alto Networks Inc (NYSE:PANW), and it counted 185,000 shares with a value of $34.85 million after the fund had raised its stake by 69%. This position comprised […]
Editor's note: This story was previously published in April 2019. It has since been updated and republished.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.Source: Shutterstock 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.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 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. Palo Alto Networks (PANW)Palo Alto Networks (NYSE:PANW) might be the simplest, "set it and forget it", play among cybersecurity stocks.Source: Shutterstock Palo Alto has successfully transitioned away from a reliance on hardware and jumpstarted growth in the process. Revenue in the third quarter, for instance, rose over 24% 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)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.Source: Shutterstock 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. * 7 F-Rated Stocks to Sell for Summer 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)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.Source: Shutterstock 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)For investors who like chasing growth, the cybersecurity sector has some of the best stocks. One of them is Proofpoint (NASDAQ:PFPT).Source: Shutterstock 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.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. * The 7 Top Small-Cap Stocks Of 2019 Carbonite (CARB)For investors who appreciate business transformations, meanwhile, Carbonite (NASDAQ:CARB) might be the play.Source: Shutterstock 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 The post 5 Cybersecurity Stocks to Watch As the Trend Heats Up appeared first on InvestorPlace.