Tableau Software (DATA) Is Today's Storm The Castle Stock

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 Tableau Software ( DATA) as a "storm the castle" (crossing above the 200-day simple moving average on higher than normal relative volume) 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 $86.9 million.
  • DATA has traded 1.2 million shares today.
  • DATA is trading at 1.88 times the normal volume for the stock at this time of day.
  • DATA crossed above its 200-day simple moving average.

'Storm the Castle' stocks are worth watching because trading stocks that begin to experience a breakout can lead to potentially massive profits. Once psychological and technical resistance barriers like the 200-day moving average are breached on higher than normal relative volume, the stock is then free to find new buyers and momentum traders who can ultimately push the stock significantly higher. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize on. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in DATA with the Ticky from Trade-Ideas. See the FREE profile for DATA NOW at Trade-Ideas

More details on DATA:

Tableau Software, Inc. provides various business analytics software products in the United States, Canada, and internationally. DATA has a PE ratio of 447.7. Currently there are 7 analysts that rate Tableau Software a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Tableau Software has been 1.3 million shares per day over the past 30 days. Tableau Software has a market cap of $2.8 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 0.75 and a short float of 13.9% with 3.46 days to cover. Shares are up 0.7% 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 Tableau Software as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, feeble growth in its earnings per share and unimpressive growth in net income.

Highlights from the ratings report include:
  • The share price of TABLEAU SOFTWARE INC has not done very well: it is down 9.51% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • 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. For the next year, the market is expecting a contraction of 113.3% in earnings (-$0.02 versus $0.15).
  • 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 77.6% when compared to the same quarter one year ago, falling from -$2.58 million to -$4.57 million.
  • The gross profit margin for TABLEAU SOFTWARE INC is currently very high, coming in at 93.80%. 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 -5.04% significantly underperformed when compared to the industry average.
  • 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.

null

If you liked this article you might like

Anthem, A.O. Smith, Tableau Software: 'Mad Money' Lightning Round

Anthem, A.O. Smith, Tableau Software: 'Mad Money' Lightning Round

Cramer Calls It a Market Reset: 'Mad Money' Recap (Monday 2/5/18)

Cramer Calls It a Market Reset: 'Mad Money' Recap (Monday 2/5/18)

Jim Cramer: Let Your Investments Soar With the Eagles

Jim Cramer: Let Your Investments Soar With the Eagles

Jim Cramer: The Surprising Stock Market Winners That Investors Are Chasing

Jim Cramer: The Surprising Stock Market Winners That Investors Are Chasing

Tableau Software: Cramer's Top Takeaways

Tableau Software: Cramer's Top Takeaways