This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Using Proofpoint for Hand to Hand Combat with the Hackers

Over the last year this stock has delivered incredible returns of 186% to its shareholders. The S&P 500 by contrast has returned 22.2% over the same time period. Proofpoint gets an overall momentum grade of 'A+'. It is one of the best performing stocks in the market right now.

Valuation

A stock's performance tells us how it's held up in the past. But what about the future? There are no guarantees ever, but we can get a good idea by looking to the valuation of Proofpoint. This is the second of three tests a stock must pass to become a Best Stock Now.

Proofpoint is currently trading with fairly rich price to sales and price to book numbers. The company is not profitable yet, but sales are growing rapidly. It reported 43% revenue growth in its most recent quarter. The five-year consensus growth estimate going forward is 30% per year. Growth like this is not cheap. I currently have a five-year target price on the stock of $70. I see ample upside potential from here.

Stock Chart

The third and final test is the stock chart test. I like companies and stocks that are flourishing in this current market environment. I hate sideways trends that are languishing. I also despise downtrends.

PFPT 50-Day Simple Moving Average Chart
PFPT 50-Day Simple Moving Average data by YCharts

I use one-year charts to size up stocks. As I check out the technical patterns of this stock over the past one year, I see a stock that is currently flourishing. Proofpoint passes my performance, valuation and stock chart test.

Gunderson Stock Grade

Out of 3,836 stocks in my Best Stocks Now database, Proofpoint currently comes in at #56 and earns a Gunderson stock grade of 'A'.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

Clients of Gunderson Capital Mgt. are currently long this stock. You can follow me on Twitter for a change in my opinion of Proofpoint.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PFPT $56.71 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs