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S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
See how to make money instead of spending it on Black Friday with this offer (Ad)
Sober or bright? Europe faces holidays during energy crunch
Biden eases Venezuela sanctions as opposition talks resume
See how to make money instead of spending it on Black Friday with this offer (Ad)
Whole Foods decision to pull lobster divides enviros, pols
Airbnb has a plan to fix cleaning fees
THE BEST BLACK FRIDAY DEAL YET (Ad)
Saudi viewers angry over apparent ban on World Cup streaming
Cuba's informal market finds new space on growing internet
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
See how to make money instead of spending it on Black Friday with this offer (Ad)
Sober or bright? Europe faces holidays during energy crunch
Biden eases Venezuela sanctions as opposition talks resume
See how to make money instead of spending it on Black Friday with this offer (Ad)
Whole Foods decision to pull lobster divides enviros, pols
Airbnb has a plan to fix cleaning fees
THE BEST BLACK FRIDAY DEAL YET (Ad)
Saudi viewers angry over apparent ban on World Cup streaming
Cuba's informal market finds new space on growing internet
S&P 500   4,026.12
DOW   34,347.03
QQQ   286.92
Considerations When Rolling Over a 401(k) into a Roth IRA
See how to make money instead of spending it on Black Friday with this offer (Ad)
Sober or bright? Europe faces holidays during energy crunch
Biden eases Venezuela sanctions as opposition talks resume
See how to make money instead of spending it on Black Friday with this offer (Ad)
Whole Foods decision to pull lobster divides enviros, pols
Airbnb has a plan to fix cleaning fees
THE BEST BLACK FRIDAY DEAL YET (Ad)
Saudi viewers angry over apparent ban on World Cup streaming
Cuba's informal market finds new space on growing internet

Box Inc. Stock on Track to Become a Q4 Winner

Key Points

  • Technically, Box Inc. shares are setting up for a breakout. 
  • There’s enough fundamental momentum present to drive them on.
  • Short of a negative surprise, there’s no reason shares won’t be in the $30 range soon.
Box on Track to Be a Q4 Winner

A 15% jump in Box Inc. (NYSE: BOX) since the start of the month should tell you everything about the kind of momentum the cloud storage company carries into Q4. Its shares had been under pressure throughout September after forming a dangerous-looking double top over the summer, but there’s a good argument that it'll test the $30 level again. 

While the broader market rally of the past week shows signs of losing some steam, Box Inc. stock will only gather pace. The catalyst for the latest kick came earlier this week when Morgan Stanley upgraded its rating on the company, moving to "overweight" from "equal-weight." Analyst Josh Baer and his team noted its offerings are "underappreciated" compared to the value they provide, that the company is improving its financials and can close the gap relative to its peers. They slapped a fresh $34 price target onto it at the same time, noting that the company's recent results highlight strong execution and its suite of software products is taking hold.
Box On Track To Be A Q4 Winner

Getting Involved

From where shares opened on Thursday, this suggests there’s at least a 15% upside in the works, and if shares were to hit it in the coming weeks, they’d be logging a 40% rally from the lows of last month. It would also put them at fresh all-time highs and well above the previous two tops that might otherwise have held them back. 


In a note to clients, Baer wrote that "recent results demonstrating higher net retention, lower churn and strong large deal momentum, with consistent execution across geographies, customer sizes and verticals, suggest Box's Suite selling and expanding product capabilities are allowing customers to more easily realize the value of the full Box platform.” He did add that the "challenging macro" environment remains a risk for potential investors. 

This macro headwind had analysts raising red flags during the earlier months of the summer, although a forecasted deceleration of revenue growth did not materialize in the company’s most recent earnings report. As with many other tech companies, Box will still need to tread carefully in the coming months as inflation and interest rate readings point north. Overall, the sentiment is positive. 

Ahead of its annual BoxWorks event and financial analyst day, Baer added that a large total addressable market, "relatively durable" growth expectations, margin expansions, continued free cash flow support, stock buybacks and "an undemanding valuation" all support a decision to upgrade. Indeed, the bullish outlook echoed that of the team over at Citi who only last month named Box one of their “favorite opportunities," citing a transformation over the past couple of years following inconsistent performance since its 2015 IPO.

Technical Strength

From a technical perspective, there’s a lot to like about the stock right now as the evenings start to get darker. Shares have been setting higher highs and as they move up toward the $30 mark and an obvious tightening pennant continues forming. This can often be one of the most bullish technical signals out there and points to a decisive breakout on the horizon as the trading range narrows and the stock chooses a definitive direction. There’s enough fundamental and technical momentum behind its shares right now to indicate that this will be a move out and up

Investors should be mindful that the RSI has gone almost vertical in the past few days and could experience a temporary pullback in the sessions ahead. Any weakness, short of being fundamental based, should be viewed as a buying opportunity in what looks like this Q4 winner already.

Should you invest $1,000 in BOX right now?

Before you consider BOX, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and BOX wasn't on the list.

While BOX currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
BOX (BOX)
1.7799 of 5 stars
$28.09-0.1%N/A-108.04Moderate Buy$33.10
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Sam Quirke

About Sam Quirke

Contributing Author: Technical Analysis

After graduating with a degree in finance, Sam worked for a trading technology company as an analyst before joining a prop firm. Here he traded energy, commodity and index futures while utilizing a combination of technical and fundamental analysis. Today he manages his own stock and option portfolio which is made up of longer term positions and shorter term momentum plays. He lives in Chicago.
Contact Sam Quirke via email at s.quirke.us@gmail.com.