Closer Look – NEWR

NEWR daily chart courtesy of MarketSmith

Quarterly Earnings – NEWR per share earnings increased to 19 cents from 5 cents in the year ago quarter. The fifth consecutive quarter of triple digit EPS growth and good for +280% in the most recent quarter.

Quarterly Revenue – NEWR revenue growth increased 35% in the most recent quarter following revenue growth of 36%, 35% and 34% in the previous 3 quarters.

Annual earnings growth – NEWR is estimated to make a profit of 60 cents this year versus a profit of 1 cent last year. EPS estimates for 2020 are currently sitting at 86 cents, a potential 43% increase year over year. Analyst estimates have been on the rise for both 2019 (10 upward revisions in last 30 days) and 2020 (9 upward revisions in last 30 days).

Changing the way we work – NEWR is a SAAS vendor and their software ensures the applications IT departments are using are performing at their absolute best. The “dashboard” helps IT department managers identify problems quickly and helps speed up the time it takes to address and solve the issue. NEWR was founded in 2007 and is headquartered in San Francisco, California.

Accumulation – NEWR has an up/down volume ratio of 1.5 as shares climb toward the $114.78 pivot of a Stage 3 base. NEWR has an Accumulation/Distribution rating of B and mutual fund participation has increased to 533 funds from 449 nearly a year ago. 

Running mates – NEWR is in the Computer Software – Database group which is currently ranked number 11 out of 197 industry groups. Strong peers in the group include MDB, ATTU, AYX and DATA.

Technical notes: Stage 3 base and $114.78 standard pivot. RS line sits just below new highs; watch for RS into new highs ahead of breakout. Light volume handle, but drifts upward rather than lower. May need one more shakeout of weak hands before breakout can stick. Additionally, stage 3 base carries more risk. Of note, pocket pivots on 2/25 and 3/1. First target near $128 on strong volume breakout.

NEWR 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 NEWR at the time of this writing.