Cloud Computing Stock Near Buy Point After Pullback
Cloud Computing Stock Box (BOX) fell after climbing a buy point above 32.00 last week. This software-as-a-service (SaaS) leader is Monday’s IBD 50 Stocks To Watch pick.
Box, which serves customers spanning the United States to Poland to Australia, unifies content collaboration, file storage, security, workflow, e-signatures and developer tools on a single platform. It uses automation to streamline workflow, repeatable tasks, and complex processes.
It serves more than 100,000 customers in a wide range of industries, from media to government to non-profit organizations. Two-thirds of Fortune 500 companies use Box services.
This cloud computing stock is ranked first out of 27 stocks in the Computer Software – Database industry group. The group climbed to 115th from the bottom of the 197 IBD groups three months ago, rising from 149th four weeks ago.
Cloud Computing Stocks Pull Back From Buy Point
Box shares broke out of a base-to-base pattern on Friday in lighter than average volume. The cloud computing stock retreated on general market weakness on Monday and is back within 1% of the buying point. The stock formed a new base from a cup-with-handle base, trading sideways after a brief dip earlier this month following an analyst downgrade.
It’s about 3% off its 52-week high.
collaboration with Salesforce; Growing turnover
Box announced improvements for its Selling power (CRM) this month, helping companies securely connect their teams.
In third-quarter fiscal 2023 results released in November, management forecast gross margin of 76% for full-year 2023, down from 74% last year. The target is 77% for fiscal 2025. Operating margin increased, with 22.5% expected in 2023, compared to 20% for fiscal 2022.
Full year 2023 revenue is expected to grow by 13%, with a target of 15% to 17% by 2025.
Quarterly earnings per share growth has accelerated over the past three quarters, ranging from 12% to 18%.
Analysts expect impressive EPS growth of 38% in 2023 and 25% in 2024. The “A” in the CAN SLIM investment strategy means year-over-year earnings growth and looks for companies with improved performance. at least 25%.
Box reports its fourth quarter fiscal 2023 results in early March.
Cloud Computing Stock Keep It Green
Box is committed to the environment with its LEED Gold-certified Redwood City, California-based headquarters. Box estimates that it has saved more than one million plastic water bottles since 2017 and provided more than 13,000 meals to Peninsula Food Runners, families in need.
Follow Kimberley Koenig for more stock insights on Twitter @IBD_KKoenig.
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