Growth investors should keep CLDR on their radar
Cloudera, Inc. (NYSE:CLDR) is a Silicon Valley-based software company that provides a platform for data analytics and management products. The company primarily operates through two segments: subscription and services.
On the charts, Cloudera stock is up 20% in the last 12 months. A brief foray below $5 last March was followed by a channel of higher highs that culminated in a Dec. 23 two-year peak of $15.50. And while the shares have taken a breather since then, their ascending 20-day moving average has stepped up as support.
Despite the stock's technical tenacity, analysts remain on the sidelines. Of the nine brokerages covering CLDR, six maintain "hold" or "sell" ratings. Plus, the consensus 12-month price target of $15.14 is a slim 6.6% premium to last night's closing perch at $14.19. This means the equity is ripe for a shift in analyst attention that could fuel tailwinds on the charts.
As for the company's fundamentals, Cloudera stock carries a forward price-earnings ratio of 31.06, which is low for a company with such a high growth rate. Although Cloudera has slowed its revenue growth in the past 12 months, they've more than tripled its revenue the previous three years. In addition, the company’s balance sheet is exceptional. Cloudera carries almost $400 million in cash and just $205 million in debt. Overall, Cloudera has massive growth potential and limited risks for potential investors.
It's a prime time to buy premium on the equity's near-term options, too. CLDR's Schaeffer's Volatility Index (SVI) of 59% ranks in the 14th annual percentile, meaning short-term options are relatively cheap, from a volatility perspective.