This software company beat analysts’ forecasts last quarter and is expected to grow 23.7% this year.
Elastic N.V. (ESTC)
From FMA Trader Alert
Big Data is where a lot of past and future profits are being made. And, that should come as no surprise, because Big Data firms help businesses, governments and all types of entities gain all sorts of valuable insights.
From in-depth customer research to the development of new products of all sorts, to precision cost management and competitive analysis, the products of Big Data analytics also provide the kind of information and operational intelligence that can help entities better assess, monitor and create solutions to problems much faster than ever before.
So, it’s no wonder that the future of business, government, et al., is all about Big Data, and that bright future is something fast-money investors can bet on right now.
One of the leading companies in the analytics and Big Data sector is Elastic N.V.
Elastic is a search technology firm that aggregates data from myriad sources and then allows its customers to perform specialized searches of that data to gain all sorts of insights specific to that company’s or organization’s needs.
In its most recent quarter (fiscal Q1, ended July 1), Elastic came in with a profit of six cents per share, a huge beat over the expected loss of 18 cents per share, and a surge of 119% from the prior fiscal Q1. The company’s revenue also soared, up 44% from the previous year to $128.9 million.
While the fundamentals are solid here for ESTC, what we really like is that the company’s fast-money surge over the past 52 weeks has outpaced over 90% of all other publicly traded companies. Even stronger is the company’s year-to-date surge of some 68%.
We expect that upside will continue, especially considering the stock now is surging off of its recent basing technical pattern following the early September decline that took place along with the rest of the broad market.
So, today let’s buy the Elastic N.V. (NYSE: ESTC) at market, with a protective stop loss at $86.22.
For those willing to take a bigger bet, we recommend you buy the ESTC Jan $115 call options (ESTC210115C00115000) at market, which last traded for $9.15 and expire on Jan. 15, 2021.
Mark Skousen & Jim Woods, FMA Trader Alert, markskousen.com, Eagle Financial, 300 New Jersey Ave. NW, Suite 500, Washington, D.C. 20001, September 28, 2020