Infoblox: Networked for growth
This young company is a 'rising star' when it comes to helping others manage their computer networks.
From a stock picker's standpoint, it's easiest to spot strength during a weak market; if a stock is holding up well in this environment, it deserves some extra attention.
Our latest list has many such stocks, and our favorite is Infoblox (BLOX), a young, rapidly growing networking firm. It's software products help corporations to monitor and control their networks.
That's the simple explanation of the company's automated network controllers that manage IP addresses, configure devices, check compliance, discover networks, implement IT policies and more.
Infoblox's products are called "appliance-based solutions," meaning that they combine both physical and virtual devices to keep networks safe and efficient, and they do their job automatically.
The company leads the industry in Automated Network Control, which takes fallible humans out of the loop. Its products are recommended by Cisco, VMware, and Riverbed to their customers.
After years of spotty profitability, Infoblox has turned a corner; the last three quarters have featured average revenue growth of a little over 30% and earnings growth of 200%, 50% and 120% from fiscal Q4 to the latest quarter.
The company's quarterly report in May topped expectations for both revenue and earnings, and management's guidance for the coming quarter was much higher than expected.
With virtually every company online these days, the move toward locating most vital information in the Cloud is creating huge demand for products that can increase the safety, efficiency and ease of network management. Infoblox is a rising star in that field, and it's making its debut in today's Cabot Top Ten Trader.
Technically, BLOX came public in April 2012 at $16, and traded as high as $24 last September before an October secondary stock offering knocked it down to $14.
The stock rebounded in November, chugging back to $23 in February where it put in a 12-week consolidation before breaking out to new highs in May.
BLOX has pretty much ignored the market's recent hissy fit, although it may need to cool off a little and wait for its 25-day moving average, now at $25.70, to catch up.
You can buy the stock on a dip to $28 or wait for that 25-day to arrive to provide lift. A stop at the stock's post-earnings gap support at $24 makes sense in this environment.
More from TheStockAdvisors.com
- Strong tailwinds lift F5 Networks
- Pile's picks: NVIDIA & Skyworks
- Cisco: 'Plenty of room for growth'
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The solid report comes a month after the retailer closed all of its Canadian operations.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.