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The Barracuda Networks Inc. (Nasdaq: CUDA) stock price soared 13% today (Wednesday) to a 52-week high of $26.69 after posting strong quarterly earnings.
But there's an even better profit play that we recommend in the growing cybersecurity field.
Before we get to our pick, here's everything investors need to know about the soaring CUDA stock price today…
Why the CUDA Stock Price Is Rallying Today
Barracuda Networks sells a suite of security and storage appliances and services. These products help customers detect and prevent security threats, store data, and improve network performance. Barracuda works mostly with mid-sized companies, which CUDA says is an underserved market.
CUDA has built its business on being an "affordable," and it places a strong emphasis on subscriptions. It doesn't compete in the next-generation cybersecurity space.
Barracuda stock hit the market on Nov. 6, 2013. Shares were priced at $18, the low end of the $18 to $21 range. The CUDA stock price opened its first day of trading at $22.80.
The company had several years of steady double-digit revenue growth in the high teens and was consistently profitable. But things changed in 2015 when CUDA posted three straight quarters of disappointing numbers.
But as the company revamped its product line toward the faster-growing cloud and virtual-based products, CUDA has now reported its third straight earnings beat…
Here are some of the biggest numbers driving the CUDA stock price today:
- CUDA posted fiscal Q2 2017 earnings per share (EPS) of $0.21. That was $0.08 better than expected.
- Revenue rose 12.1% year over year (YOY) to $87.9 million. Consensus was for revenue of $85.28 million.
- Gross billings were $100.3 million. That was better than the company's guidance of $96 million to $99 million. It was also up from the $98.4 million logged in the same quarter a year ago.
- The number of active subscribers grew 14% YOY to over 298,000.
- CUDA expects FY 2017 EPS in a range a $0.66 to $0.69 versus the consensus of $0.57. Revenue for the full year is projected to come in between $345 million and $340 million. That's in line with Wall Street's expected $344 million.
Clearly, CUDA is in turnaround mode and has some great potential.
But there's a better way to play the cybersecurity boom. The CUDA stock price may be soaring, but this pick has plenty of upside and is a much safer play…