VMware, Inc. (NYSE:VMW) earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average positive earnings surprise of 5.6%.
With expected long-term earnings per share growth rate of 13.2% and a market cap of $31.5 billion, VMware stock seems to be one that investors should retain in their portfolio for now.
Let’s take a look at the factors that have been driving the company’s performance, as well as VMware stock.
VMware’s suite of virtualization solutions are benefiting from the increasing adoption of cloud-based solutions.
Enabling software support on cloud is a positive as many enterprises now prefer public cloud platforms like Amazon Web Services (AWS), Microsoft’s (NASDAQ:MSFT) Azure and Alphabet’s (NASDAQ:GOOGL) Google Cloud. VMware has partnered AWS to offer an integrated hybrid cloud solution, functioning much like a SDDC.
VMware on Amazon’s (NASDAQ:AMZN) AWS is also widely available in Europe. The company has a similar kind of agreement with IBM. Reportedly, the company plans to expand its cloud relationship with Microsoft and Google, which will boost user base and top line in the long haul.
Nevertheless, the company has been consistently undertaking initiatives to diversify its product portfolio to include most of the IT infrastructure. The company’s acquisitions of Desktone and Airwatch have significantly strengthened its position in this aspect. The company’s offerings in domains like SDDC (vSphere, vSAN, NSX), hybrid cloud (vCloud Air, VMware Cloud Provider Program) and EUC (AirWatch, Horizon) have helped it to gain market share.
All these justify this Zacks Rank #3 (Hold) stock’s retention in investors’ portfolio.
Best Electric Car Stock? You’ll Never Guess It.
Zacks Research has released a report that may shock many investors. One stock stands out as the best way to invest in the surge to electric cars. And it’s not the one you may think!
Much like petroleum 150 years ago, lithium battery power is set to shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge. With battery prices plummeting and charging stations set to multiply, revenues that were already at $31 billion in 2016 are expected to blast to over $67 billion by the end of 2022.