An Analysis of NetSuite's 3Q15 Earnings
Shareholder returns and stock trends
NetSuite (N) has generated returns of -1.4% in the trailing-12-month period and 4.6% in the trailing-one-month period. The company’s share price has increased by 3.0% in the trailing-five-day period.
In comparison, its peer companies Akamai (AKAM), Check Point Software (CHKP), and Intuit (INTU) have generated returns of 1.4%, 2.9%, and 4.8%, respectively, in the trailing five-day-period.
Moving averages
On October 22, 2015, the last trading price of NetSuite was $91.72. The company was trading 4.4%, 2.6%, and 0.07% above its 20-day, 50-day, and 100-day moving averages of $87.80, $89.40, and $91.70, respectively.
Moving average convergence divergence (MACD) and RSI
The MACD is the difference between the short term and long term moving averages of a company. The 14-day MACD for Netsuite is -0.05 and shows a downward trading trend, as the figure is negative.
The 14-day relative strength index (RSI) for NetSuite is 59, which shows that the stock was at the edge of overbought. If the RSI is above 70, it indicates that a stock is overbought, while an RSI figure of below 30 suggests that a stock has been oversold.
NetSuite constitutes 1.4% of the First Trust Dow Jones Internet Index ETF (FDN) and 0.71% of the iShares North American Tech-Software ETF (IGV).
Analyst Recommendation
Out of 30 analysts covering the stock, 11 have given it “buy” recommendations, five have given it “sell” recommendations, and 14 have given it “hold” recommendations.
The analyst stock price target for NetSuite is $110.0 with a median target estimate of $107.0. NetSuite is thus trading at a discount of 16.6% with respect to its median target and could be an option to buy at current levels.
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