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Bull Of The Day: Pluralsight (PS)

Brian Bolan
·2-min read

Pluralsight (PS) is a Zacks Rank #1 (Strong Buy) and it is the Bull of the Day today. The stock has that growth divergence that I love to see.  That means it has an A for Growth and a D for Value – telling me right away that this stock is what growth investors are looking for.  That alone makes me want to take a deeper look at the stock.

Description

Pluralsight Inc. is an enterprise technology learning platform. It offers online training courses for professional developers, IT admins and creative artists. The company serves individuals and businesses, as well as academic and government sectors. Pluralsight Inc. is based in Utah, United States.

Earnings History

PS has a great earnings history with four consecutive beats of the Zacks Consensus Estimate.

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The most recent quarter saw the company report a loss of nine cents, but that was five cents better than the consensus at a loss of fourteen cents. That positive earnings surprise works out to be 35%.

Over the last four quarters the average positive earnings surprise is 42.8%, which tells these are all really big beats.

Big beats like that tend to lead to higher earnings estimates, and that is what really drives the Zacks Rank.

Estimate Revisions

Those big beats have been driving estimates higher for Pluralsight. The consensus for this quarter has seen a positive increase of two cents.  The same is true for next quarter as well.

Two cents here and two cents there tends to add up and the full year estimate ended moving higher by eight cents. Next year also saw an increase of eight cents.

Valuation

The valuation for PS is pretty high and that is what keeps the value investors away from this stock. Since there are no earnings there is no PE to lean on. Instead we look at price to book and we see a lofty 11x multiple. The topline is seeing impressive growth of 33% and that has allowed the price to sales multiple come in at 7.4x. So there is good reason for growth investors to remain interested in the stock.

Chart

Pluralsight Inc Price, Consensus and EPS Surprise

Pluralsight Inc Price, Consensus and EPS Surprise
Pluralsight Inc Price, Consensus and EPS Surprise

Pluralsight Inc price-consensus-eps-surprise-chart | Pluralsight Inc Quote

The Hottest Tech Mega-Trend of All

Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


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