I always emphasize the fundamentals when analyzing prospective stocks, but I love to look at the charts as well. Chart reading, technical influences and behavioral considerations don’t tell us as much about the fundamentals, but they do tell us everything about the psychology of shareholders and potential shareholders.
The company I want to tell you about today is in the midst of what I call a true breakout, meaning it has hit new highs on better-than-average volume. It is also a stock I have a history with over the last few years.
It was a grand slam for me once, and then I got hammered another time. Now it’s looking more like a grand slam again.
Infoblox Inc (NYSE:BLOX) is the leader in automated network control, delivering essential technologies to help its customers control their business networks. BLOX’s technologies allow businesses to automate their extremely complex network control functions in order to reduce costs while increasing both security and uptime.
BLOX has been a leader in the world of network services since before the turn of the millennium when it delivered the first hardened DNS appliance. In other words, BLOX brought a whole new idea to the table, giving its clients a level of security and reliability nobody had ever seen before.
And Infoblox has been leading the market ever since.
BLOX is a global company that operates out of 25 countries and provides network solutions to more than 7,900 enterprises — including one third of the Fortune 500. It is strategically partnered with global giants like Cisco Systems, Inc. (NASDAQ:CSCO), VMware, Inc. (NYSE:VMW), Microsoft Corporation (NASDAQ:MSFT) and Riverbed Technology, Inc. (NASDAQ:RVBD), all of which recommend Infoblox’s products and solutions to their respective customers.
I really like that this company is in a unique situation with its IT infrastructure and what management calls their DDI (IP Address Management) solution, which creates a sort of virtualization environment. This is truly an amazing product and the adoption of it has been absolutely phenomenal.
Digging into the numbers, BLOX has easily beaten the Street in each of the last four quarters. And in its most recent report, revenues were up 11% quarter over quarter and 22% year-over-year. Plus, its margins are going up nicely and money is now starting to funnel to the bottom line.
And to get back to where we started, the stock is making a true breakout. It hit a new 52-week high again last week and I think it will continue to go higher.
Curious what Wall Street insider Charles Payne really thinks? Get more behind-the-scenes insights, valuable market research and hands-on guidance including live stock recommendations from Fox Business’s rising star. Charles Payne’s Smart Talk is absolutely FREE for a limited-time only. Sign up today!
