Elastic N.V. (ESTC) is a company known for its search engine and analytics software, providing a suite of software products and services designed for data search, logging, security, and analytics. The company’s core product is the Elastic Stack, sometimes known as the ELK Stack (an acronym for Elasticsearch, Logstash, and Kibana), which is widely used for searching, analyzing, and visualizing large volumes of data in real-time. https://www.elastic.co/
Elasticsearch is a highly scalable search engine that allows for fast data indexing and retrieval, making it useful for a wide range of applications, from simple document searching to complex analytics.
Logstash is a server-side data processing pipeline that ingests data from multiple sources simultaneously, transforms it, and then sends it to a “stash” like Elasticsearch.
Kibana provides visualization capabilities on top of the data stored in Elasticsearch. It enables users to create bar charts, line and scatter plots, histograms, and maps on large volumes of data.
Beats is a platform of lightweight, single-purpose data shippers. They send data from hundreds or thousands of machines and systems to Logstash or Elasticsearch.
Beyond the ELK Stack, Elastic N.V. has expanded its offerings to include features like machine learning for advanced analytics, security features for protecting against threats, and application performance monitoring (APM) solutions. These tools are widely used in various industries for applications such as site search, application search, logging and log analysis, performance monitoring, and security information and event management (SIEM).
The company serves a broad range of sectors, including financial services, healthcare, government, education, and e-commerce, among others. Elastic’s products are known for their flexibility, scalability, and the ability to deal with complex and voluminous data in real time, making it a critical tool for businesses looking to leverage their data for operational intelligence and decision-making.
The summary for Elastic N.V. (ESTC) presents a comprehensive analysis of its stock performance, highlighting key financial and trading metrics that suggest a strong bullish trend both in the short and long term. The stock is currently priced at $124.6000, having increased by 5.01% on the day, and shows significant growth over different time frames: 5.92% weekly, 20.57% monthly, 96.56% yearly, and 10.56% year-to-date. The company operates within the Technology Services sector, specifically in Business Services.
Trend Analysis:
Long-Term Trend: Elastic N.V. has been on an upward trend for at least the past 180 trading days, which is considered a strong indicator of future price movement direction.
Short-Term Trend: There has been a short-term uptrend observed over the past 7-10 days.
Signal and Strength Rank:
The current trading signal for ESTC is a “BUY,” reflecting potential advancement in its price trend. The stock’s Strength Rank is 97, indicating that it outperforms 97% of its peers, suggesting a high likelihood of continuing its upward trajectory.
Financial Metrics:
Return on Equity (ROE): The ROE is at -30.65%, indicating low financial efficiency.
Earnings Per Share (EPS): Currently at -0.2, with an annual EPS growth of 60% and a quarterly EPS growth of 42.86%, indicating strong earning potential.
Sales Growth: The quarterly sales growth is at 5.74%, below the desirable 25% but still positive.
Dividend Yield: Elastic N.V. does not offer a dividend yield (0.00%), focusing instead on growth.
Market Capitalization: The company has a market cap of $11 billion, reflecting its significant size and influence within its sector.
Trading Characteristics:
Historical trading data reveals a balanced number of wins and losses, with an average net gain of 19.83% and an annual trade expectancy of 25.78%. The average time in trade is 33 days, and the average interval between trades is 24 days.
Backtesting Results:
Backtesting Elastic N.V.’s stock indicates a positive trade expectancy of 5.16%, with an annual trade expectancy of 25.78%. This suggests that, historically, trading ESTC has been profitable and could continue to be so based on its past performance.
In conclusion, Elastic N.V. demonstrates strong growth potential and financial performance, supported by its upward trend in both short and long term, strong earnings growth, and superior market performance relative to its peers. Despite some financial efficiencies, such as a negative ROE and the absence of a dividend yield, the company’s stock appears to be a promising investment based on its current trends and historical trading characteristics.
