Cloud Companies to Buy: Fleetmatics (FLTX)
When it comes to cloud companies, Fleetmatics (FLTX) stock is downright cheap. The stock trades at only five times sales, and the forward price-to-earnings ratio is 24.
Founded about 10 years ago, Fleetmatics is now a top player for fleet management solutions, with a focus on small- and medium-size businesses. The technology helps improve fuel usage and speed as well as reduces driver risks. In Q1, FLTX grew its revenues by 35% to $51.9 million and operating cash flows came to a juicy $20.3 million. The company has about 472,000 active subscriptions.
But FLTX continues to find new opportunities growth, especially in foreign markets. Some of the recent expansion efforts include moves in Mexico, Mainland Europe and Australia.
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.