| Stock (Symbol) | Stock Price | |
VMware (VMW) |
$92 |
|
| Data is as of | Expected to Report | Sector |
February 1, 2012 |
Apr 19 |
Technology |
| Sharek’s Take | ||
 Last quarter VMware’s CEO thought 2012 would be more challenging. Now we are in 2012 and I think this stock will be range-bound this year. The stock is good, but with a P/E of 35 this stock isn’t going to climb without profit growth of 40% or more. I think VMW will have 30% profit growth this year.I’m not going to sell VMW because cloud computing has a great outlook for the next three-to-five years. This is one of the fastest growing industries around, and VMware is the top software stock in the space. |
||
| One-Year Chart | ||
 You can see the year-long trading range in the one-year chart. The P/E of 35 matches the profit growth of 35% made last quarter.Estimates show 23% and 15% profit growth ahead. I think VMW will beat by a little, maybe up by a little, and have 25-30% growth or so. |
||
| Earnings Table | ||
 Profit growth was 35% last quarter. Revenue growth is slowing a bit — 27% LastQtr, 34% 2QtrsAgo, and 37% 3QtrsAgo.VMW only beat by a couple cents. Gosh three and four quarters ago the company was beating by 6-8 cents. There’s no catalyst here. Annual Profit Estimates increased slightly, but nothing to get me exited about. Quarterly estimates show 20% or so growth ahead, these estimates are rising. A bit. |
||
| Fair Value | ||
 VMW is close to its 2012 Fair Value. Upside through 2013 is solid, so this may be a year the stock bases. |
||
| Ten-Year Chart | ||
 VMW’s base is more prevelant on the ten-year chart. This stock is traveling between $75 and $100. |
||
| Power Ranking | Bottom Line | |
Growth Portfolio
18 of 20 |
VMware has upside of around $100 a share. Long-term investors can sell half their position if the stock breaks that mark. This is a solid holding for growth investors. VMW is ranked 18th in the 20 stock Growth Portfolio Power Rankings. The stock is not in the Aggressive Growth Portfolio because there’s still not much upside to Fair Value. |
|
Aggressive Growth Portfolio
N/A |
||
