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Here's Why You Should Buy MobileIron (MOBL) Stock Right Now

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The Internet software industry primarily comprises software infrastructure and application providers. The industry is currently benefiting from continued strong digital transformation demand.

MobileIron, Inc.  has turned out to be one of the best performers in the Internet – software industry this year. The company’s shares has surged 11.9% in the past year against the industry’s decline of 9.4%.

The Zacks Consensus Estimate for earnings and revenues for current year 2018 is pegged at a loss of 4 cents and $193.5 million, representing 80.9% and 9.6% year-over-year growth, respectively. This positive trend signifies bullish analysts’ sentiments and justifies the company’s Zacks Rank #2 (Buy). It also indicates robust fundamentals and the expectation of outperforming its industry in the near term.  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

What’s Favoring MobileIron?

MobileIron delivered third-quarter 2018 earnings of 2 cents per share against the Zacks Consensus Estimate of a loss of 2 cents per share. Notably, the company reported a loss of 7 cents per share a year ago.

The company reported revenues of $49.25 million during the third quarter, surpassing the Zacks Consensus Estimate by 1.69%. The figure also surpassed year-ago revenues of $42.72 million.

Moreover, the company surpassed earnings estimates in three of the trailing four quarters, recording average beat of 85.7%.

MobileIron appears to be benefiting from growing clout of its UEM solution, which was recently recognized as a leading solution in the market by Gartner and Forrester, among other research firms.

The growing focus on client satisfaction is increasing mobility among employees of an organization. The job requires employees to switch between client site and office which in turn leads to increased use of devices including smartphones, enabling employees to access client data on the go.

The aforementioned factors increase the risk of losing or compromising valuable client data to unsecured networks, for instance. This calls for a secure platform ensuring seamless access to client data irrespective of employee location and time, which is where MobileIron’s UEM solutions come handy.

The company’s products, particularly MobileIron Cloud and MobileIron Access enjoy steady demand particularly from federal governments worldwide. Previous contract wins from Slovenian railways and the Public Health Agency of Sweden bode well for the company’s growth prospects.

Robust adoption of UEM suite of solutions is anticipated to favor top-line growth, going ahead. Moreover, MobileIron continues to gain from its product selections by wireless carriers like Verizon Communications and T-Mobile.

Additionally, the company’s strength in UEM solution is enabling it to rapidly penetrate into high growth Enterprise Mobile Management (“EMM”) and Cloud Security markets. Per a Stratistics MRC report as revealed by Reuters, worldwide enterprise mobility market is envisioned to witness a CAGR of 21.9% to reach approximately $1225.8 billion in 2026 from $206.13 billion in 2017.

Furthermore, per ReportsnReports estimates, the cloud security market will witness a CAGR of 25.5% to reach around $12.73 billion by 2022 from approximately $4.1 billion in 2017.

Apart from the aforementioned reports, increasing IT management spending indicate strong growth prospects for MobileIron.

Other Stocks to Consider

Some top-ranked stocks in the broader technology sector are Upland Software (UPLD - Free Report) , Marvell Technology Group Ltd. (MRVL - Free Report) and Infineon Technologies AG (IFNNY - Free Report) , all flaunting a Zacks Rank #1.

Long-term earnings growth rate for Upland Software, Marvell and Infineon Technologies is currently pegged at 20%, 9.4% and 8.6%, respectively.

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