NedtSuite - N
This morning I added NetSuite (N) to the Barchart Van Meerten New High portfolio. The company is a leading provider of on-demand, integrated business management software for growing and mid-size businesses. With thousands of customers globally using NetSuite's online products and professional services, companies are enabled to manage all key business operations in a single hosted system, including: customer relationship management; order fulfillment; inventory; accounting and finance, product assembly; e-commerce; Web site management; and employee productivity.
As the economy recovers new small and mid-sized start-ups will be buying business management software and existing businesses will be upgrading their software to be current and competitive. Businesses don't have time or the patience to deal with multiple vendors. They look for one stop shopping so NetSuite has a product line and a delivery system they might appreciate. What are the numbers on this stock?
There are 21 Wall Street Brokerages with published recommendations to their clients and 20 of them rate the stock as hold or better based on projections of double digit increases in sales and earnings. Sales are estimated to increase 13.90% this year and 16.60% next year. If their projections on earnings can be believed they look for increase in EPS of 140.00% this year, 83.30% next year and 27.00% annually for the next 5 years. Great numbers.
General investor awareness and sentiment as measured on Motley Fool is good. The CAPS members think the stock will out perform the market by a vote of 148 to 53 with the All Stars in step 33 to 9.
I really like the current price momentum. The stock has appreciated 32.28% in the last month by hitting 13 new highs in the last 2o trading session including all 5 of the last 5. Barchart's 13 technical indicators have 12 buy signals and the stock's 14 day Relative Strength Index is 72.34% and rising. It traded recently at 19.63 well above it's 50 day moving average of 15.47.
The stock looks promising based on:
1 - Positive price momentum
2 - 96% Barchart technical buy signal
3 - Wall Street is pushing their clients to buy based on projections of double digit growth of both sales and earnings
4 - General investor sentiment is positive.
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication