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 "dead cat bounce" (down big yesterday but up 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 $62.8 million.
- BLOX has traded 234,934 shares today.
- BLOX is up 3.6% today.
- BLOX was down 48.1% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in BLOX with the Ticky from Trade-Ideas. See the FREE profile for BLOX NOW at Trade-Ideas 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 7 analysts that rate Infoblox a buy, no analysts rate it a sell, and none rate it a hold. The average volume for Infoblox has been 1.2 million shares per day over the past 30 days. Infoblox has a market cap of $1.8 billion and is part of the services sector and diversified services industry. Shares are up 1.6% year-to-date as of the close of trading on Monday. 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 sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time. 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 against the S&P 500 and did not exceed that of the Software industry. The net income has decreased by 6.7% when compared to the same quarter one year ago, dropping from -$2.39 million to -$2.55 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. 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 gross profit margin for INFOBLOX INC is currently very high, coming in at 78.82%. Regardless of BLOX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLOX's net profit margin of -4.01% significantly underperformed when compared to the industry average.
- INFOBLOX INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INFOBLOX INC continued to lose money by earning -$0.10 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus -$0.10).
- Compared to its closing price of one year ago, BLOX's share price has jumped by 75.05%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in BLOX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full Infoblox Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.