Closer Look – PFPT

PFPT daily chart courtesy of MarketSmith

Quarterly Earnings – PFPT per share earnings are up 38% in the most recent quarter increasing to 51 cents from 37 cents. Additionally, earnings growth has accelerated for 3 consecutive quarters.

Quarterly Revenue – PFPT revenue growth increased 35% in the most recent quarter following revenue growth of 37% and 40% in the previous 2 quarters.

Annual earnings growth – PFPT is estimated to make a profit of $1.65 this year versus a profit $1.47 last year. A 12% increase in annual earnings growth. PFPT is estimated to make a profit of $2.25 next year. A 36% jump in annual earnings growth.

Sizzling sector – PFPT operates in the red hot security-as-a-service (SaaS) sector offering organizations protection against security threats such as malicious attachments and malware as well as providing solutions for email security. PFPT also provides security solutions for data loss prevention and encryption. PFPT was founded in 2002 and is headquartered in Sunnyvale, California.

Accumulation – PFPT has an up/down volume ratio of 1.6 as shares climb the right side of a potential Stage 1 base towards a $129 standard pivot. PFPT has an Accumulation/Distribution rating of A- but mutual fund participation has decreased to 515 funds from 558 nearly a year ago.

Running mates – PFPT is in the Computer Software – Security group which is currently ranked number 9 out of 197 industry groups. Strong peers in the group include OKTA, ZS and CYBR.

Notes: Reclaimed weekly 40ma on EPS gap. $129 standard pivot with RS line near new highs. Positive sign if RS line moves to new high ahead of breakout. Straight up from bottom on right side may need handle to shakeout weak hands. Pocket pivot within handle or break of downtrend line within handle may allow for early entry. Price target near $155.

PFPT weekly chart courtesy of MarketSmith

Disclaimer: None of the presented content represents individual investment advice to buy or sell securities and the information provided is solely for informational, educational and entertainment purposes. Author has no position in PFPT at the time of this writing.