NEW YORK (TheStreet) -- Tableau Software (DATA) shares are down 2.4% to $96.77 in trading Tuesday and is the subject of today's Trifecta Stocks 'Chart of the Day' analysis.
Tifecta Stocks' Bryan Ashenberg and Bob Lang believe that data technology and cloud computing are segments that are primed for growth in the near future as companies look to spend more on data security and increased capacity.
The company reports first quarter numbers later in the week. Notice the last earnings reaction where we see a sharp rise after a blowout report.
The stock is right back where it was on that gap having gone sideways for three months, consolidating a sharp 20% rise over a few sessions.
We see a nice cup-and-handle pattern, with volume pulling back in the handle, which is what we like to see. This stock could really take off as energy is released post-earnings.
- Bryan Ashenberg and Bob Lang, "Chart of the Day: DATA," originally published 5/5/15 on TrifectaStocks.com
TheStreet Ratings team rates TABLEAU SOFTWARE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate TABLEAU SOFTWARE INC (DATA) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The gross profit margin for TABLEAU SOFTWARE INC is currently very high, coming in at 94.70%. 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, the net profit margin of 14.48% trails 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.
- This stock has increased by 77.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- TABLEAU SOFTWARE INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. 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, 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 ($0.23 versus $0.04).
- You can view the full analysis from the report here: DATA Ratings Report