Qualys Inc. (NASDAQ:QLYS) on the Path to Ruin

Qualys Inc. (NASDAQ:QLYS) on the Path to Ruin

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The Qualys Inc. (QLYS) shares are trading at lower $100.87 and the avg recommendation for the stock is Moderate Buy. The current analyst price target stands at $104.21.

To add more color to this target, the company’s high over the last year is $119.19 and the low is $63.37. Over the last 52 weeks, QLYS is down -15.37% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, QLYS reported a profit of $61.39 million. Qualys Inc. also saw revenues increase to $78.93 million. In addition, QLYS has free cash flow of $67.14 million as of 06-2019 The company’s EBITDA came in at $23.5 million which compares well with its peers.

QLYS booked profit margins of 22.50%, its Return on Equity (ROE) is 19.70%, and its Return on Assets is 11.40%. All told, it is clear that, QLYS needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. QLYS has a short ratio of 8.92 and outstanding shares of 39.11M.

Company Outlook

QLYS has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.44 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.82. Qualys Inc. QLYS also noted assets of $645.61 million at the end of the last quarter. Investors should also keep an eye on sector updates as QLYS has historically followed its peers on positive news.

All told, Qualys Inc. QLYS has strung together solid data and demonstrated underlying fundamentals. At its current valuation, QLYS represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Qualys Inc. QLYS is now commanding a market cap of 4.00B and a float of 33.67M. QLYS is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of QLYS stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in QLYS, either long or short, and we have not been compensated for this article.