As the market indexes come under pressure, cloud computing leader Box ascends to the top of its buy zone. Lifted by average earnings growth of 185% over the last three years and partnerships with Microsoft, Apple, Salesforce and Google parent Alphabet, the IBD 50 member lands a spot on the IBD Breakout Stocks Index.
Box stock is also on this month's list of new buys by the best mutual funds.
Working with global organizations ranging from the U.S. Air Force and Broadcom to Morgan Stanley and AstraZeneca, Box enables enterprises to collaborate securely from anywhere, as well was integrate across best-of-breed apps.
Headquartered in Redwood City, Calif., the company has offices across the U.S., Europe and Asia.
With the highest-possible 99 Composite Rating, Box stock earns top billing among its peers in the Computer Software-Database group.
The cloud computing leader reports fiscal Q4 and full-year 2023 results on March 1 after the close.
Tech Titans Trust Box
Box has an impressive list of collaborations with powerhouses in cloud computing and other tech sectors.
Last month, it unveiled new enhancements of its integration with the Salesforce AppExchange from Salesforce. The Salesforce AppExchange helps businesses connect teams to their content so they can work securely from anywhere.
Box and Google work together to empower secure and mobile collaborations in Google Workspace.
Microsoft and Box also leverage deep integrations with Office 365 and over 1,500 other apps.
To securely streamline access and collaboration across all iOS devices, Box also works with Apple, enabling the completion and management of projects on the go for iPhone and iPad.
Growth Accelerates As Ascent Continues
Box has posted three straight quarters of accelerating earnings growth. EPS gains have risen from 9% to 41% during that period. Earnings per share came in at 31 cents last quarter.
When the company reports fiscal Q4 numbers on March 1, analysts expect it to post 43% growth for the quarter and a 37% EPS increase for the full fiscal year.
Revenue growth has been solid and steady, ranging from 10% to 18% over the last seven quarters. Box sports an A SMR Rating, which tracks sales growth, profit margins and return on equity.
Box Stock Floats Back To Upper Edge Of Buy Zone
Viewed on a weekly chart, Box cleared a 32.10 buy point in a cup with handle last month. Since the stock undercut the low in the prior pattern to reset the base count, it's considered a first-stage base. Early stage patterns have a greater likelihood of success.
In the lead-up to that breakout and since then, Box stock has found support at its 10-week moving average.
In early February, it jumped beyond the top of the buy zone to become extended before pulling back. In a sign of support and resilience, Box found support at and stayed above the initial buy point.
As its cloud collaborators GOOGL, CRM, MSFT and AAPL continue to recover from last year's bear market, Box looks to return to the all-time high it hit earlier this month.
With the buy zone extending to 33.60, Box currently trades right around the very top end of that range.
The relative strength line is just shy of a 52-week high and multiple weeks of heavy-volume spikes point to demand for Box stock.
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Follow Matthew Galgani on Twitter at @IBD_MGalgani.
