Stocks That Should Surprise the Market: Tenable Holdings Inc. (TENB), JD.com Inc. (JD)

Tenable Holdings Inc. (NASDAQ: TENB) shares are 66.57% up in the year-to-date (YTD) period and have moved 6.03% or $2.27 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +145.15% lower. Comparatively, the stock is -0.52% down YTD and 31.37% over the trailing 3-month period. If we look at the shorter duration, its week performance is 12.45% and 15.78% over the month.

Analyst Recommendations

On April 15, 2020, Monness Crespi & Hardt recommended the TENB stock is a Buy, while earlier, SunTrust had Upgrade the stock as a Buy on July 29, 2020. 12 analysts offering the recommendations for the stock have a consensus rating of 1.70 to suggest that the TENB stock is a “Strong Buy. 0 of the 12 analysts rate the stock as a “Sell”, while 0 has rated it as “Underweight”. 10 recommend buying, with 0 rating it as an Overweight.

The stock currently trades at $39.91 and analysts tracking its performance over the next 12 months have a consensus estimate price target of $37.80. The forecasts give the Tenable Holdings Inc. stock a price target range of $45.00 on the higher side while at least one analyst think the stock could plunge to a low of $31.00. The two limits represent an upside potential of 11.31% or -28.74%.

Earnings Forecast

Analysts estimate the earnings to increase 180.00% in the current quarter to $0.03, up from the -$0.07 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.02, up 21.90% from -$0.42 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between $0.03 and $0.06. Wall Street estimates earnings per share to be at an average of $0.13 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 50 over the last 12 months, while SEC filings reveal that there have been 225 insider sales over the same period. Insiders have purchases 645,986 shares while those sold by company executives and officers stand at 22,649,138. The last 3 months have seen insiders trade a total of 230,354 and 7,589,623 in purchases and sales respectively.

Vintz Stephen A, a Chief Financial Officer at the company, sold 4,094 shares worth $0.14 million at $35.09 per share on Aug 20. The General Counsel & Secretary had earlier sold another 1,433 TENB shares valued at $50278.0 on Aug 20. The shares were sold at $35.09 per share. Yoran Amit (President, CEO and Chairman) sold 5,976 shares at $35.09 per share on Aug 20 for a total of $0.21 million while Kennelly Jerry M, (Director) sold 16,000 shares on Aug 17 for $0.54 million with each share fetching $33.49.

JD.com Inc. (NASDAQ:JD), on the other hand, is trading around $82.49 with a market cap of $131.90B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $77.27 and spell out a less modest performance – a -6.76% return. Some analysts are even forecasting $1.56 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the JD.com Inc. (JD) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

JD’s operating margin was positive on the trailing 12 months basis, remaining steady at 2.00%, while the operating expenses over the recent quarter were at $3.34 billion. This represented a 88.27% of the company’s total revenues which amounted $28.46 billion. With this in place, we can see that the company’s diluted EPS inclined $1.48 on the year-over-year period, growing to $0.05 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $49.89 billion from $37.52 billion over the previous quarter. Short term investments amounted to $6.9 billion while total current assets were at $29.08 billion. The cash flow from operating activities totaled $3.55 billion, significantly higher than the $3.43 billion reported in the year-ago quarter. The company’s free cash flow for the quarter was $3.55 billion.

Major holders

Insiders own 7.60% of the company shares, while shares held by institutions stand at 51.00% with a share float percentage of 1.33B. Investors are also buoyed by the number of investors in a company, with JD.com Inc. having a total of 944 institutions that hold shares in the company. The top two institutional holders are Tiger Global Management, LLC with over 51.65 million shares worth more than $3.11 billion. As of Jun 29, 2020, Tiger Global Management, LLC held 4.29% of shares outstanding.

The other major institutional holder is Blackrock Inc., with the investment firm holding over 43.62 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $2.63 billion and represent 3.62% of shares outstanding.