Stock To Watch: Tableau Software (DATA) In Perilous Reversal
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Tableau Software as such a stock due to the following factors:
- DATA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $158.7 million.
- DATA has traded 242,275 shares today.
- DATA is down 3% today.
- DATA was up 21.4% yesterday.
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More details on DATA:
Tableau Software, Inc., together with its subsidiaries, provides business analytics software products in the United States, Canada, and internationally. Currently there are 16 analysts that rate Tableau Software a buy, no analysts rate it a sell, and 6 rate it a hold.
The average volume for Tableau Software has been 1.4 million shares per day over the past 30 days. Tableau Software has a market cap of $4.3 billion and is part of the technology sector and computer software & services industry. The stock has a beta of -0.36 and a short float of 11.7% with 3.62 days to cover. Shares are up 20.9% year-to-date as of the close of trading on Friday.
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Analysis:
rates Tableau Software as a
. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share.
Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 188.8% when compared to the same quarter one year ago, falling from -$4.63 million to -$13.37 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Software industry and the overall market, TABLEAU SOFTWARE INC's return on equity significantly trails that of both the industry average and the S&P 500.
- TABLEAU SOFTWARE INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, TABLEAU SOFTWARE INC reported lower earnings of $0.04 versus $0.15 in the prior year. This year, the market expects an improvement in earnings ($0.39 versus $0.04).
- The gross profit margin for TABLEAU SOFTWARE INC is currently very high, coming in at 91.92%. Regardless of DATA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DATA's net profit margin of -7.82% significantly underperformed when compared to the industry average.
- Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- You can view the full Tableau Software Ratings Report.
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