Carbonite is a Zacks Rank #1 (Strong Buy) and it has a Growth Style Score of A, so you know that it is on my radar screen. I am like aggressive growth stocks and this one fits the bill. Let's see why in this Bull of the Day article.
Description
Carbonite Inc. is a computer service company which provides online backup solutions for consumers and small and medium sized businesses to retrieve files if lost on the internet. The Company's backup solutions work automatically and continuously uploading encrypted copies of its customer's files to the servers known as Carbonite Personal Cloud. Carbonite Inc. is headquartered in Boston, Massachusetts.
Recent Earnings
CARB beat expectations back on Feb 7, when the company reported EPS of $0.45 which was $0.03 ahead of the Zacks Consensus Estimate. Revenues were just a little shy of expectations at $77M but that was still good for nearly 25% annual growth.
Guidance was soft, with next quarter looking at $77M - $78M when the consensus was calling for $80.4M. That is the sort of thing you don't want to see.
The end result was the stock was crushed following the report, down as much as 19% that day and more than 16% for the week of the earnings report.
Buy That Dip
So here is the rub, the stock gets beat up and the estimates for this quarter fall by four cents and by a penny for next quarter. That is basically all the damage as the 2019 number fell by 5 cents.
The 2020 number, however, is up from $1.90 60 days ago to $1.99. So in the short term we have some falling estimates but the long term has them rising.
That sets up for a perfect dip for investors to be confident to buy.
Chart
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Bull Of The Day: Carbonite (CARB)
Carbonite is a Zacks Rank #1 (Strong Buy) and it has a Growth Style Score of A, so you know that it is on my radar screen. I am like aggressive growth stocks and this one fits the bill. Let's see why in this Bull of the Day article.
Description
Carbonite Inc. is a computer service company which provides online backup solutions for consumers and small and medium sized businesses to retrieve files if lost on the internet. The Company's backup solutions work automatically and continuously uploading encrypted copies of its customer's files to the servers known as Carbonite Personal Cloud. Carbonite Inc. is headquartered in Boston, Massachusetts.
Recent Earnings
CARB beat expectations back on Feb 7, when the company reported EPS of $0.45 which was $0.03 ahead of the Zacks Consensus Estimate. Revenues were just a little shy of expectations at $77M but that was still good for nearly 25% annual growth.
Guidance was soft, with next quarter looking at $77M - $78M when the consensus was calling for $80.4M. That is the sort of thing you don't want to see.
The end result was the stock was crushed following the report, down as much as 19% that day and more than 16% for the week of the earnings report.
Buy That Dip
So here is the rub, the stock gets beat up and the estimates for this quarter fall by four cents and by a penny for next quarter. That is basically all the damage as the 2019 number fell by 5 cents.
The 2020 number, however, is up from $1.90 60 days ago to $1.99. So in the short term we have some falling estimates but the long term has them rising.
That sets up for a perfect dip for investors to be confident to buy.
Chart
Carbonite, Inc. Price and Consensus
Carbonite, Inc. Price and Consensus | Carbonite, Inc. Quote
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities. These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>