After being burned by Mobileye (NYSE:MBLY) in the past, I told myself I would never go near this name again. However, it's very hard to ignore the stock's 51% year-to-date return. I know that investor mentality is commonly to buy low and sell high, but what about buy high and sell higher? I'm taking a look to see if MBLY's run is still in its early innings.
To begin, I believe that it is unfair to value Mobileye based on its current revenue and earnings. I think the company is more aptly valued by its potential, say, three to five years down the road.
With this said, however, I understand that in the near-term, the stock must trade off of some type of multiple. Q1 was a strong quarter for Mobileye, with $45.6 million in revenue. The company also reaffirmed its full-year EPS of $0.39. Read more on Seeking Alpha.
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