Shares of CalAmp Corp. (NASDAQ:CAMP) rose 12.5% in the month of November, according to data provided by S&P Global Market Intelligence, both as the broader market climbed and the stock rebounded from its weaker-than-expected quarterly report in late September.
For perspective, CalAmp stock plunged 15% the day after its fiscal Q2 2017 report on Sept. 29, 2016, primarily as management blamed unfavorable macroeconomic conditions in North America for holding back growth from key customers for MRM telematics products within its core wireless datacom segment.
However, CalAmp CEO Michael Burdiek also insisted that the company was seeing "firming of demand" so far in its current quarter and expressed optimism they would see growth pick up from its core businesses later this fiscal year and into fiscal 2018. In the meantime, CalAmp will wisely stay focused on not only investing in its innovative telematics products but also fostering new markets unlocked through its recent acquisition of vehicle-recovery solutions specialist LoJack.
That's also why I suggested investors would be wise to take advantage of CalAmp's pullback in early October. In any case, we should receive more color on whether that demand was sustained when CalAmp next reports earnings on Dec. 21, 2016. But if that report holds good news, I suspect CalAmp shares have much farther to climb from here.