Box, Inc. (BOX) Ready To Tore A Hole Through The Roof

After opening Wednesday at around $20.29, Box, Inc. (NYSE:BOX) stock surged to as high as $20.35. It then made a downturn, dipping as low as $19.8. Although the stock bounced a bit into the close, it finished the day at $19.81, down -0.41 points or -2.03 percent on the day. The final volume for the day was 2.507 million, which was less than its average volume. The firm is left with a market cap of $2.81 billion and now has 141.98 million shares outstanding. Box, Inc. (BOX) stock has lost -15.56 percent of market value in 21 trading days.

BOX stock has a trailing 3-year beta of 1.51, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.96 a share in the trailing twelve months. The stock’s value has surged 17.36 percent year to date (YTD) against a decline of -4.58 percent in 12 month’s time. The company’s shares still trade -33.5 percent away from its 1-year high of $29.79 and 26.66 percent up from 52-week low of $15.64. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Box, Inc. (BOX) will probably climb 24.03 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $27-month high price target. This represents a whopping 36.29 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $24, which represents a return potential of 21.15 percent when compared to the closing price of the stock of $19.81 on Wednesday, March 13. The lowest price target for the stock is $15 — slightly more than -24.28 percent from BOX’s current share price.

History has shown that shares in Box, Inc. have gone down on 12 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. Investors will get their next glimpse of BOX’s Q1 earnings on May 30. Analysts are forecasting revenue to climb 14.9 percent to $161M in the fiscal first quarter, while earnings are seen soaring by nearly -28.57 percent to -$0.05 per share. It earned $0.06 per share, better than the $0.02, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $164M, in line with the $164M analysts expected. Earnings are estimated to increase by 59.1 percent this year, 950 percent next year and continue to increase by 8 percent annually for the next 5 years.

The stock is currently hovering around the first support level of $19.62. Below this, the next support is placed in the zone of $19.44. Till the time, the BOX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 40.72 on daily chart, which may remain a cause for concern. If the price breaks below $19.44 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $20.17 mark may result into a pull-back move towards $20.54 level.

Further, it is sporting a 4.62 on the Price-to-Sales ratio. Compare this with the industry average P/S of 5.45. 71.5 percent is the gross profit margin for Box, Inc. and operating margin sits at -24.3 percent. Along with this, the net profit margin is -24.7 percent.