Teradata Corp. (TDC) has rebounded strongly from a recent pullback to move back within striking distance of its recent all-time high above $62. With estimates on the rise and a bullish growth projection, this Zacks #1 Rank stock has plenty of momentum.
Company Description
Teradata Corp provides enterprise data warehousing solutions worldwide. The company was founded in 1979 and has a market cap of $9.4 billion.
The weak market of August and September weighed on many stocks, including TDC. But shares have since rebounded sharply, supported by rising estimates and strong Q2 results from early August that came in ahead of expectations.
Second-Quarter Results
Revenue for the period was up 24% from last year to $460 million. Earnings also came in strong at 57 cents, 10% ahead of the Zacks Consensus Estimate.
The good quarter was led by its largest region, North and South America, where sales were up 21% from last year to $339 million. Sales in Europe, Middle East and Africa were up 34% to $145 million.
Financial Profile
Teradata also has an awesome financial profile, with cash and short-term investments of $682 million against just $295 million in total debt.
Estimates
We saw some decent movement in estimates off the good quarter, with the current year adding 5 cents to $2.13. The next-year estimate added 5 cents to $2.48, a bullish 17% growth projection.
Valuation
With a PEG ratio of 1.47, TDC trades at a premium to the benchmark of 1 for value.
12-Month Chart
On the chart, shares have rebounded nicely after pulling back in the weak market. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the
Editor in charge of the Zacks
Momentum Trader Service.
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