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Even elite stocks, the ones you can buy and hold forever, hit volatility.
But over time, those peaks and valleys smooth out into a long-term upward trend.
So when an elite stock does have a downswing, it's a great opportunity to buy more shares for cheap. Or you can buy shares for the first time if you've missed out on the success up to this point.
That's the case with the cloud computing stock we're bring you today.
This company may be the best cloud software vendor on the planet. And we're not the only ones who think so.
Its quality products and services have translated to great success in the stock market too. The share price is up 108% over the last three years, compared to 38% for the S&P 500.
But after a 57% rise earlier in the year, the stock fell by 36% between mid-May and late August.
That's our opening...
Mind you, the company has turned in two straight earnings beats during that decline. It's now beaten earnings in six straight quarters.
But perhaps the stock's success over the years - along with a number of recent acquisitions - has made investors question the high share price.
As a number of metrics show, they were wrong to question it.
In fact, the stock was already undervalued before the share price began to fall in May.
That's probably why the price has started to rebound over the last month or so. But even now, it's undervalued by as much as 55%.
No wonder it just got a top score from our Money Morning Stock VQScore™ system.
As we said, this is an elite stock - one that you can buy and hold forever, even as it has its peaks and valleys. Now that the price has dipped well under its fair value, it's the perfect time to get in if you haven't already.
This Cloud Computing Stock Is a Great Pick for Any Market Conditions
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About the Author
Stephen Mack has been writing about economics and finance since 2011. He contributed material for the best-selling books Aftershock and The Aftershock Investor. He lives in Baltimore, Maryland.