Buy this Top-Ranked Cloud Stock Ahead of Earnings for Coronavirus Resilience?

Anaplan PLAN shares have soared roughly 80% since the market’s March 23 lows, to crush the tech sector’s 33% climb. Now, let’s see if investors might want to buy PLAN stock with the cloud-based planning software firm set to report its first quarter fiscal 2021 financial results before the market opens on Tuesday, May 26.

The Basics

Anaplan, as its name might suggest, develops cloud-based, enterprise-level SaaS platforms to help enable real-time planning and decision-making. The company currently boasts over 1,400 customers around the world, and PLAN topped our Q4 earnings and revenue estimates. Anaplan’s fiscal 2020 sales surged 45% and it cut its adjusted loss per from -$0.73 down to -$0.44.

As we mentioned at the top, PLAN stock has skyrocketed 80% over the last two months. Overall, Anaplan shares are up over 100% since the firm went public in October 2018. And despite the recent run, which crushes Facebook FB, Zoom ZM, Apple AAPL, and other high-flyers, PLAN stock still sits nearly 20% off its 52-week highs. This could give it plenty of room to run if it’s able to impress Wall Street.

 

 

 

 

 

 

 

 

Outlook

Our current Zacks estimates call for Anaplan’s Q1 revenue to jump 35% to reach $102.3 million. Meanwhile, its full-year fiscal 2021 sales are projected to climb 30%, with FY22 expected to come in another 28% higher to hit $577.32 million.

Alongside its projected sustained revenue growth, Anaplan is expected to post a slightly smaller adjusted loss in Q1, at -$0.14 a share against the year-ago period’s -$0.16. PLAN’s adjusted FY21 loss is expected to remain nearly the same. Then the tech firm’s adjusted full-year fiscal 2022 loss is projected to be nearly cut in half at -$0.25 a share.

Bottom Line

Anaplan is a Zacks Rank #1 (Strong Buy) right now that has easily topped our quarterly earnings estimates in the trailing four periods. On top of that, PLAN is part of an industry that rests in the top 12% of our more than 250 Zacks industries.

In the end, playing stocks for near-term gains around earnings is risky. But longer-term investors who are looking for growth within tech might want to consider Anaplan, as it trades at $50 a share.

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