Our Stock of the Week is Qualys (QLYS). QLYS provides cloud-based security with such products as Asset Inventory, CMDB Sync, Vulnerability Management, Continuous Monitoring, Cloud Agent, Threat Protection, Security Configuration Assessment, Indication of Compromise, Policy Compliance, PCI Compliance, Security Assessment Questionnaire, File Integrity Monitoring, Web Application Scanning, and Web Application Firewall.
The company has consistently beat earnings estimates. Last quarter it posted earnings of 49 cents versus estimates of 42 cents and saw revenues grow 16%. The stock ran up into the report in anticipation of another strong quarter but then was hit with a "sell the news" reaction.
We are looking for the stock to act similarly this quarter with anticipation of another good quarter pushing it over the recent downtrend line. The valuation here is aggressive, but the consistency of the earnings helps to offset that issue.
As always, we would not chase the stock at the open but would look for entries on either a lower volume pullback or a higher volume move through resistance.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. ("SAMI"), directly or indirectly, controlled investment and/or trading accounts containing no positions in QLYS. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.