Nutanix (NTNX: $34)
Bull Market Report Target Price: $30
Bull Market Report Sell Price: $19
Earnings Date: Thursday, After Market Close
Consensus: 3Q17
Revenues: $267 million
EPS: -$0.26
Year Ago Quarter Results
Revenues: $167 million
EPS: -$0.37
Key Things to Watch For in the Quarter
Nutanix is expected to report a 60% increase in revenue along with a reduction in its earnings deficit for 3Q17. The stock turned itself around over the past four months since hitting its 52-week low of $15 in April. Nutanix currently trades 125% above low, which can mainly be attributed to institutional investors who have increased their positions in the stock by 7% over the past six months. Nutanix has beaten analyst estimates in each of the past four quarters and we expect this trend to continue as the company grows its top line.
The stock has blown through our Target of $30 as we have a double in the stock since we added it in May, just six months ago. We hereby raise our Target to $42 and raise the Sell Price to $28.
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VMware (VMW: $127)
Bull Market Report Target Price: $120
Bull Market Report Sell Price: $100
Earnings Date: Thursday, 5:00 PM ET
Consensus: 3Q17
Revenues: $2.0 billion
EPS: $1.27
Year Ago Quarter Results
Revenues: $1.8 billion
EPS: $1.14
Key Things to Watch For in the Quarter
Analysts expect VMware to report an 11% increase in sales along with an 11% increase in earnings for 3Q17. The stock has beaten estimates in each of the past four quarters and has appreciated almost 60% over the past year. VMware is a leading firm in virtualization and cloud infrastructure solutions in the U.S. and has a gross margin of 85%, indicating the firm's marketing power relative to the cost of delivering its products to the customer. We strongly believe in the firm’s management and its ability to grow revenue into the future.
Again, this stock has shot through our Target of $120. We hereby raise the Target to $137 and raise the Sell Price to $118. This $51 billion company, mostly owned by Michael Dell, is one of our favorites.