Is Brocade Communications Destined for Greatness?http://www.fool.com/investing/general/2013/09/15/is-brocade-communications-destined-for-greatness.aspx Alex Planes
September 15, 2013
Investors love stocks that consistently beat the Street without getting ahead of their fundamentals and risking a meltdown. The best stocks offer sustainable market-beating gains, with robust and improving financial metrics that support strong price growth. Does Brocade Communications (NASDAQ: BRCD) fit the bill? Let's look at what its recent results tell us about its potential for future gains.
What we're looking for
What the numbers tell you
How we got here and where we're going
Shares of networking storage specialist Brocade recently surged by 15% after posting better-than-expected quarterly results. However, Brocade's has been facing ferocious competition from Cisco (NASDAQ: CSCO) and Oracle in storage-area networking, which has forced it to refocus on its proprietary Ethernet-fabric business over other core offerings. My fellow Fool Dan Caplinger points out that this technology is purpose-built for virtualized data centers, which could offer a killer edge when it comes to partnering up with the group of elite technology companies aggressively expanding into virtualization.