A month ago, I wrote an article titled, "Buy Mobileye Now!!". In the article, I was looking for MBLY to retest $60. Since then, there have been numerous upgrades on MBLY, and, today, MBLY traded as high as $59.29! It will likely test that $60 mark very soon!
The M&A actions in the semiconductor sector continues to heat up. There have been rumors about MSFT at least looking into purchasing CRM. This leads to me to think that perhaps we should take a closer at the software space, particularly in the cybersecurity and cloud areas.
There are three stocks that I think could do very well in the coming months.
1) Splunk, Inc. (SPLK)
Last Friday, SPLK announced that it will purchase Caspida, Inc to boost up its cybersecurity in its products. SPLK pulled back a bit today. But, I think SPLK is about to break out!
Splunk provides software products that allows the user to collect and analyze real-time data. It also provides cloud services. SPLK's all-time high is $106.14 set back in February 2014. I'm looking SPLK to at least test $85 by the end of the year.
2) Tableau Software, Inc (DATA)
DATA has already been very strong. It has been hitting a resistance around $123 to $124. It is due to report earnings on July 29, before the market opens. Today, it received a target boost from $122 to $138. Its charts are a bit toppy. But, I think if the broader market gets past the issues with Greece and stays strong, $138 is not a difficult mark to hit.
3) VASCO Data Security International Inc (VDSI)
VDSI recently traded up to $35, but, has been pulling back with the rest of the cybersecurity stocks for about two weeks. It closed on Monday at $28, up +2.12%. What is interesting is that VDSI shot up to $29.11 intraday today, before pulling back.
I think VDSI could do very well ahead of its earnings on July 28. I would look for it to re-test that $35 mark on good earnings.
Good night and HappyTrading! ™