Earnings season is winding down, and most companies that have seen big moves have done so thanks not to their actual earnings, but to their guidance. Companies that have gotten more cautious have been hit hard, even if that caution is warranted amid rising political and geopolitical changes.
But companies that are reporting smooth sailing now are in a strong position to continue performing well. Especially if they’re showing both strong current earnings and future guidance.
One such rare play right now is cybersecurity firm Rubrik (RBRK). Shares saw a 20% jump on upbeat guidance following an already impressive year.
Rubrik’s data security and cloud services offer an expansive suite of options against insider threats or ransomware, offering some differentiation from other cybersecurity firms.
Overall, revenues jumped by 48%, to just under $900 million. Overall, Rubrik is still losing money, but improving revenues and margins could allow it to turn a profit over the coming quarters.
Action to take: Rubric shares have already had a strong post-earnings pop, but are still off their all-time highs. In the short-term, shares could run to $80, for low double-digit returns.
For traders, with shares flipping back to bullish, this high-beta stock could deliver big returns quickly. The July $80 calls, last trading for about $8.00, could see high double-digit returns by summer.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.
