#3 - VMware (NYSE:VMW)
VMware (NYSE:VMW) can’t seem to generate the conviction from investors that it deserves. Although the company is often compared to Salesforce.com (NYSE:CRM), Salesforce seems to get more love. For example, from the start of the pandemic in March of 2020, CRM stock has climbed nearly 100%. VMW stock by contrast has climbed about half of that (57%).
The companies have similar business models, but there is a key difference. Salesforce connects businesses with customers and clients through the cloud. And investors love the recurring revenue of its SaaS service. VMware also has an SaaS component, but the company’s business is also fundamental to the entire cloud environment. In fact, VMware is in the business of helping companies make the best use of the cloud on whatever device they’re using. And the company is also a back door play on the 5G revolution.
VMW stock should have gotten more of a lift from the shift to remote work, but it still remains undervalued at this point. Investors will be paying close attention to the company’s earnings report on February 25. A solid showing could finally be the catalyst that VMware needs.
About VMware
VMware, Inc provides software solutions in the areas of modern applications, cloud management and infrastructure, networking, security, and workspaces in the United States and internationally. It offers VMware multi-cloud solutions, including VMware vSphere, a data center infrastructure that provides the fundamental compute layer; and vSAN and VxRail, which offers holistic data storage and protection options to applications running on vSphere; as well as VMware Cloud Foundation, a cloud platform that combines its vSphere, vSAN, and NSX with VMware Aria Cloud Management into an integrated stack that delivers ready cloud infrastructure for private and public clouds.
Read More - Current Price
- $143.00
- Consensus Rating
- Hold
- Ratings Breakdown
- 0 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $160.25 (12.1% Upside)
