Trade-Ideas: Infoblox (BLOX) Is Today's

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Infoblox ( BLOX) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Infoblox as such a stock due to the following factors:

  • BLOX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $35.7 million.
  • BLOX has traded 408,519 shares today.
  • BLOX is down 3.6% today.
  • BLOX was up 7.9% yesterday.

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More details on BLOX:

Infoblox Inc. develops, markets, and sells automated network control solutions worldwide. Its appliance-based solution combines real-time IP address management with the automation of network control, and network change and configuration management processes in physical and virtual appliances. Currently there are 6 analysts that rate Infoblox a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Infoblox has been 596,600 shares per day over the past 30 days. Infoblox has a market cap of $2.1 billion and is part of the services sector and diversified services industry. Shares are up 128.6% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Infoblox as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 5.9%. Since the same quarter one year prior, revenues rose by 39.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BLOX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.66, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for INFOBLOX INC is currently very high, coming in at 78.48%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, BLOX's net profit margin of 2.35% significantly trails the industry average.
  • Compared to other companies in the Software industry and the overall market, INFOBLOX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Software industry average, but is greater than that of the S&P 500. The net income increased by 134.2% when compared to the same quarter one year prior, rising from -$4.35 million to $1.49 million.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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