Stock of the Day

July 7, 2022

Quantum (QMCO)

$10.63
+$1.03 (+10.7%)
Market Cap: $377.99M

About Quantum

Quantum Corporation provides products for storing and managing digital video and unstructured data in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company offers Myriad All-Flash File and Object Storage Software for high performance enterprise unstructured data applications such as AI, machine learning, and data analytics; Unified Surveillance Platform Software that unified compute and storage for video surveillance recording, storage, and analytics; StorNext Hybrid Flash/Disk File Storage Software for video editing, post-production, and streaming applications, as well as digital file archives; and CatDV Asset Management Software for indexing, cataloging, enriching video, audio, and image files, and workflow orchestration. It also provides ActiveScale Object Storage Software that scalable and durable storage for long term data preservation and protection; DXi Backup Appliances to build backup appliances for high-speed backup and recovery and multisite data protection; and Scalar Tape Storage that secure storage for long term data archiving and offline data protection which are used by hyperscalers and enterprises. In addition, the company sells linear tape-open (LTO) a tape drives for small business data protection and archiving; and LTO media for use in tape storage systems. Further, it offers global support, managed services, customer support agreements, software subscriptions, installation, education, and consulting and training services, as well as Quantum-as-a-Service. The company sells its products through a network of distributors, value-added resellers, direct marketing resellers, original equipment manufacturers, and other suppliers, as well as directly to corporate entities and government agencies. It has a partnership with Tiger Surveillance to deliver end-to-end solutions for long-term retention and archiving of video surveillance data. Quantum Corporation was founded in 1980 and is headquartered in San Jose, California.

Today's Trend

Quantum Corporation (NASDAQ: QMCO) is seeing mixed but mostly constructive analyst news that could help explain why the stock has been supported today. The biggest catalyst is a Zacks upgrade to Buy, which signals improving optimism around Quantum’s earnings outlook and may encourage momentum-focused investors. In addition, Northland Securities reiterated a Market Perform rating and $13 price target while raising several longer-term earnings estimates, including FY2027 and FY2028, which suggests expectations for a gradual recovery in profitability.

That said, the analyst updates were not uniformly positive. Northland cut near-term estimates for Q3 2027 and Q4 2027, while also leaving the company with losses expected across much of FY2027. Overall, the news flow leans positive because the upgrade and improved later-year earnings forecasts outweigh the smaller downward revisions.

  • Quantum Corporation was upgraded to Zacks Rank #2 (Buy), reflecting growing optimism about its earnings prospects and potentially boosting investor sentiment. Article Title
  • Northland Securities raised Quantum’s FY2027 EPS estimate to ($0.28) from ($0.33), and FY2028 EPS to $0.19, suggesting a better long-term earnings path. Article Title
  • Northland Securities maintained a Market Perform rating and $13 price target while adjusting several quarterly EPS estimates, indicating cautious but stable analyst sentiment. Article Title
  • Northland lowered its Q3 2027 EPS estimate to $0.00 from $0.10 and trimmed Q4 2027 EPS to ($0.05), pointing to some near-term earnings pressure. Article Title

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