Experts recommend grabbing Quantum. Why is it a good choice?

Experts recommend grabbing Quantum. Why is it a good choice?

Stock markets rallied last week. However, most investors are now waiting for new data, which is due shortly. Moreover, there is also an upcoming EU meeting. European leaders are trying to decide what further measures they will take to help the global economy recover from the coronavirus crisis.

While the coronavirus caused many stocks to decline during the last few months, the pandemic seems to slow a little. Analysts hope that the markets begin to rebound, but they warn that recovery may be long and painful.

Still, there are some stocks, which suffered less than others. Mostly they belong to the tech sector – for example, medical or internet stocks. Pharmaceutical corporations skyrocketed during the pandemic, working on virus tests and vaccines.

What about Quantum Corporation?

Quantum Corporation isn’t medical stock, but according to analysts, it has the potential to get hefty gains. The company’s products allow customers to store, protect, and preserve digital data for the long term. It offers storage and archiving solutions for data streams, in both virtual and digital environments.

And let’s admit, digital data storage is a profitable and useful service. Quantum Corporation’s last fiscal third-quarter report is enough proof of it. The stock’s total revenue was an impressive $103.3 million in 2019. And the gross margin reached 45.6%, reflecting a value approach to selling a favorable product mix.

The company’s net income also jumped from $4.7 million to $9 million, almost doubling. While EPS reached 7 cents versus estimates of only 1 cent. Craig Ellis, the analyst at B. Riley FBR, stated that near-term business disruption caused lower F1Q product sales. However, it was followed by F2Q-4Q growth.

The average price target of Quantum stands at $5.75, indicating gains of 47% from the current share price of $3.90. Ellis thinks that Quantum Corporation will recover soon. It’s not the only stock that suffered due to the crisis. He set the stock’s price target at $6.25, with a 60% growth potential for the stock.

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