ChargePoint Holdings: Stay Away from This Expensive EV Stock
Despite posting unimpressive financials, the shares of EV charging network provider ChargePoint (CHPT) are currently trading at a premium valuation. In addition, the company’s lower profitability in the face of rising competition has raised concerns regarding its prospects. So, let’s discuss in detail why we think the stock is best avoided now. Read on.
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ChargePoint Holdings Inc. (CHPT) in Campbell, Calif., made its stock market debut on March 01, 2021, through an SPAC merger. The company provides hardware, software, and services portfolios for commercial, fleet, and residential consumers. Although the company’s shares have gained 27.5% in price over the past month, the stock has slumped 43.8% over the past nine months and 23.5% over the past six months to close yesterday’s trading session at $17.47.
In terms of trailing-12-months Price/Book, the stock is currently trading at 4.56x, which is 81.8% higher than the 2.51x industry average. Also, its 10.90x forward EV/Sales multiple is 537.5% higher than the 1.71x industry average. Furthermore, CHPT’s 12.15x forward Price/Sales is 771.1% higher than the 1.39x industry average.
Although the EV industry’s market potential is immense, with strong competitors generating higher profit margins and revenues, CHPT may struggle to compete. Furthermore, the stock’s premium valuation and lackluster financials may make investors skeptical about its near-term prospects.
Here is what could shape CHPT’s performance in the near term:
Increasing Competition
With multiple manufacturers investing extensively in EV charging solutions, coupled with rising government support for growing EV charging infrastructure, competition in the EV industry is heating up. With strong rivalry among the leading players and smaller pure-play EV charging providers, several lesser-known companies are struggling to stay afloat. Therefore, we think CHPT’s negative profit margins and inadequate financial performance may cause its shares to retreat further.
Negative bottom line
CHPT’s total revenue increased 90.3% year-over-year to $80.68 million for its fiscal fourth quarter, ended Jan. 31, 2021. Its operating loss grew 126.9% from the prior-year quarter to $80.17 million. The company’s net loss came in at $60.48 million, while its loss per share amounted to $0.23. In addition, its net cash used in operating activities increased 71.1% for the year ended Jan. 31, 2022, to $157.17 million.
Poor Profitability
CHPT’s 22.03% trailing-12-months gross profit margin is 24.5% lower than the 29.2% industry average. Also, its ROA, ROC, and net income margin are negative 18.1%, 34.9%, and 79.8%, respectively. And its trailing-12-month cash from operations stood at negative $130.01 million compared to its $210.80 million industry average.
POWR Ratings Reflect Uncertainty
CHPT has an overall F rating, which equates to a Strong Sell in our proprietary POWR Ratings system. The POWR ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. CHPT has an F grade for Stability and Value. The stock’s 1.86 beta is consistent with its Stability grade. In addition, the stock’s higher-than-industry valuation is in sync with the Value grade.
The company also has a D for Quality which is justified given its weak financials and poor profitability.
CHPT’s lofty valuation and weak profitability have been a cause of concern for investors as the EV charging market becomes increasingly competitive. In addition, analysts expect its EPS to remain negative in its fiscal 2023 and 2024. Therefore, we believe the stock is best avoided now.
How Does ChargePoint Holdings Inc. (CHPT) Stack Up Against its Peers?
While CHPT has an overall F rating, one might want to consider its industry peers, Preformed Line Products Company (PLPC), Standex International Corporation (SXI), and Applied Industrial Technologies Inc. (AIT), which has an overall A (Strong Buy) rating.
CHPT shares were trading at $17.36 per share on Thursday morning, down $0.11 (-0.63%). Year-to-date, CHPT has declined -8.87%, versus a -10.94% rise in the benchmark S&P 500 index during the same period.
About the Author: Pragya Pandey
Pragya is an equity research analyst and financial journalist with a passion for investing. In college she majored in finance and is currently pursuing the CFA program and is a Level II candidate.
3 Software Stocks Under $5 That Will Rally More Than 85% in 2022, According to Wall Street
The rapid adoption of software solutions to automate operations and for remote working is driving the software industry’s growth. In addition, technological advancements in the software field could help the sector gain further traction this year. Therefore, Wall Street analysts expect fundamentally sound software stocks Nerdy (NRDY), OppFi (OPFI), and SurgePays (SURG), which are currently trading at less than $5, to rally more than 85% in price this year. Read on.
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The increased use of artificial intelligence (AI) and cloud-based platforms in nearly every industry has resulted in heightened demand for software solutions and services. In addition, growing business process automation and digitization have contributed considerably to the software industry’s growth.
Furthermore, the emergence of centralized infrastructure, cloud on edge, low-code and no-code, and other trends will likely sustain the industry’s momentum. Indeed, the global business software and services market is expected to grow at an 11.3% CAGR by 2028.
Given this backdrop, Wall Street Analysts expect fundamentally-sound software stocks Nerdy, Inc. (NRDY), OppFi Inc. (OPFI), and SurgePays, Inc. (SURG) to see a more than 85% gain this year.
NRDY in Fort Worth, Tex., functions as an online platform for live online learning. Their purpose-built proprietary platform leverages technology, including AI, to connect learners of various ages to experts, providing value on both sides of the network. It also provides learning experiences across various projects and multiple formats.
NRDY’s revenue increased 27.3% year-over-year to $42.02 million in the fourth quarter, ended Dec. 31, 2021. Its gross profit grew 27% year-over-year to 28.66 million, while its cash and cash equivalent stood at $143.96 million for its fiscal year ending Dec. 31, 2021.
Analysts expect NRDY’S revenue to increase 41.4% year-over-year to $44.26 million for the third quarter, ending Sept. 30, 2022.
Among the seven Wall Street analysts that rated the stock, six rated it Buy, and one rated it Hold. The 12-month median price target of $8.43 indicates a 98.8% potential upside. The price targets range from a low of $5.00 to a high of $11.00. The stock closed the last trading session at $4.24.
Chicago, Ill.-based OPFI runs as a financial technology platform that allows banks to offer lending products, and facilitates installment loan products, OppLoans and SalaryTap; and the credit card product, OppFi Card. In the third quarter, ended Sept. 30, 2021, OPFI’s net revenue increased 18.1% year-over-year to $72.89 million. Its operating income came in at $11.51 million, while its net income increased 21.3% from its year-ago value to $30.39 million over this period. The company’s EPS amounted to $1.06.
The company’s revenue is expected to increase 21.6% year-over-year to $353.92 million in its fiscal year 2021.
Closing its last trading session at $3.21, the 12-month median price target of $10.00 indicates a 211.5% potential upside.
SURG in Bartlett, Tenn., is a fintech company that offers various financial services and prepaid products in the United States. The company’s blockchain platform utilizes a suite of financial and prepaid products to convert corner stores into tech hubs for underbanked neighborhoods.
In January, SURG engaged international investor relations specialists MZ Group to develop its strategic investor relations and shareholder communication program, which is designed to increase the company’s visibility across the investment community. “As the 2022 year begins, we are laser-focused on driving revenue growth and maximizing shareholder value,” said Brian Cox, Chairman, and CEO, SurgePays.
During the third quarter, ending Sept. 30, 2021, SURG’s revenue increased 13.6% year-over-year to $14.54 million. Its cash and cash equivalent stood at $0.64 million for nine months ending Sept. 30, 2021.
The stock has gained 52% in price year-to-date to close its last trading session at $3.45. Both Wall Street analysts that rated the stock rated it Buy. The 12-month median price target of $6.50 indicates an 88.4% potential upside. The price target ranges from a low of $6.00 to a high of $7.00.
NRDY shares were unchanged in premarket trading Thursday. Year-to-date, NRDY has declined -5.78%, versus a -11.12% rise in the benchmark S&P 500 index during the same period.
About the Author: Spandan Khandelwal
Spandan’s is a financial journalist and investment analyst focused on the stock market. With her ability to interpret financial data, she aims to help investors evaluate the fundamentals of a company before investing.
Although Vroom (VRM) benefited from boosted sales due to heightened demand for used vehicles over the past year, the company’s bottom line declined. Shares of the online used car retailer have slumped more than 70% in price this year. However, considering the company’s expanding market presence, the question becomes will it be worth buying the price dip in the stock? Read on to learn our view.
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New York City-based online used-car retailer Vroom, Inc. (VRM) has benefited from strong market demand for used vehicles and skyrocketing prices over the past year, caused in part by a global shortage of semiconductor chips and delays in new car manufacturing. Ecommerce units sold in its fiscal fourth quarter increased 92.7% year-over-year to 21,243, while VRM sold 74,698 units in 2021, up 117% year-over-year. The company has also been expanding its market footing, rolling out more of VRM’s Last Mile hubs across the country over the past months, with more than 30 launched so far.
However, VRM posted a wider-than-expected loss in the fourth quarter, despite solid topline growth, due to lower margins and higher reconditioning costs due to labor shortages and higher demand for third-party reconditioning companies. Also, the company expects its first-quarter revenue to come in at $875 million, well below the previous $1.04 billion Wall Street consensus. Following the news, Wells Fargo analyst Zachary Fadem slashed his price target to $6, from $16. “We believe the macro narrative is too difficult, operational hurdles appear too great, and long-term profit trajectory too uncertain to continue recommending shares,” Fadem said.
VRM shares have slumped 91.4% in price over the past year and 72.9% year-to-date to close yesterday’s trading session at $2.93. Furthermore, J.P. Morgan analyst Rajat Gupta sees little hope for a near-term improvement in investor sentiment, given inconsistent execution, elevated spending levels, and an uncertain outlook, considering the constrained labor and logistics environment.
Here is what could shape VRM’s performance in the near term:
Weak Bottom Line
For its fiscal fourth quarter, ended Dec. 31, 2021, VRM’s total revenue increased 130.3% year-over-year to $934.49 million. However, its loss from operations stood at $125.25 million, up 110.9% from its year-ago value. The company’s non-GAAP net loss came in at $128.12 million, indicating a 118.7% increase from the prior-year quarter, while its non-GAAP net loss per share rose 113.6% year-over-year to $0.94. In addition, its adjusted EBITDA grew 114.4% year-over-year to $119.85 million.
Analysts Expect EPS to Remain Negative
The Street expects VRM’s revenues to come in at $873.97 million in the current quarter, ending March 31, 2022, indicating a 68.7%increase year-over-year. Furthermore, its revenue is expected to grow 30.9% in the following quarter and 24.7% in the current year. However, the negative $1.01 consensus EPS estimate for the current quarter and negative $0.89 for the next quarter indicates 77.2% and 85.4% year-over-year declines, respectively. Also, its EPS is expected to decrease 31.7% in the current year to negative $3.53. In addition, analysts expect VRM’s EPS to decrease by 16% per annum over the next five years.
Bleak Profit Margins
VRM’s 6.35% gross profit margin is 82.3% lower than the 35.91% industry average. Also, its EBITDA and net income margins of negative 10.85% and 11.65%, respectively, are substantially lower than the 2.58% and 6.68% industry averages.
Moreover, VRM’s ROE, ROA, and ROTC of negative 34.63%, 15.67%, and 12.35%, respectively, compare with the 17.25%, 6.09%, and 7.91% industry averages.
POWR Ratings Reflect This Bleak Prospects
VRM has an overall F rating, which translates to Strong Sell in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has an F grade for Quality, which is consistent with its negative profit margins.
VRM has an F grade for Stability, in sync with its 24-month beta of 1.81.
Among the 45 stocks in the Specialty Retailers industry, VRM is ranked the last.
Beyond what I have stated above, you can view VRM’s grades for Sentiment, Growth, Momentum, and Value here.
View the top-rated stocks in the Specialty Retailers industry here.
Bottom Line
Although VRM enjoyed increased used car sales, its topline growth did not translate to bottom-line improvement in its last reported quarter due to headwinds, including higher costs and lower margins. Furthermore, the supply of semiconductor chips is expected to improve later this year, and automakers investing in ramping up production could have a knock-on effect in reducing demand and prices for used vehicles. Also, considering bearish analysts’ sentiments regarding the company’s prospects, we think it could be best to avoid the stock.
How Does Vroom, Inc. (VRM) Stack Up Against its Peers?
While VRM has an overall POWR Rating of F, one might want to consider investing in the following Specialty Retailers stocks with an A (Strong Buy) rating: Destination XL Group, Inc. (DXLG) and Cato Corporation (CATO).
Note that DXLG is one of the few stocks handpicked by our Chief Growth Strategist, Jaimini Desai, currently in the POWR Stocks Under $10 portfolio.Learn more here.
VRM shares fell $0.06 (-2.05%) in premarket trading Thursday. Year-to-date, VRM has declined -73.40%, versus a -10.94% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
Buy These 5 Defensive Stocks to Protect Your Portfolio from Market Volatility
Defensive stocks are known for exhibiting stability during wild price swings in the market. And growing sanctions on Russia and the unstable nature of crude oil prices may drive further volatility in the market. So, we think it could be wise to bet now on defensive stocks CVS Health (CVS), Becton, Dickinson and Company (BDX), Colgate-Palmolive (CL), Smith & Nephew (SNN), and Ingredion (INGR). Let’s discuss.
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The major stock market indexes have exhibited wild price swings since the beginning of the year due to multi-decade high inflation and the Fed’s forthcoming interest rate hikes. The Russia-Ukraine war has added to investors’ concerns and led to several market sell-offs of late.
Russia has been subjected to numerous sanctions by several countries, with the United States and the United Kingdom this week announcing bans on Russian oil imports. Despite declining more than 12% from its peak yesterday, the increase in crude oil prices has come as a blow to the economic recovery. Given this scenario, investors could bet on shares of defensive companies because of the near-inelastic demand for their products and services. These stocks usually withstand market shocks and deliver steady returns.
CVS Health Corporation (CVS), Becton, Dickinson, and Company (BDX), Colgate-Palmolive Company (CL), Smith & Nephew plc (SNN), and Ingredion Incorporated (INGR) possess solid fundamentals and they are defensive in nature. So, we think these stocks could be good picks to hedge one’s portfolio against current market volatility.
CVS in Woonsocket, R.I., is a health services company. It operates through the Pharmacy Services, Retail/LTC, Health Care Benefits, and Corporate/Other.
On Dec. 2, 2021, CVS announced a strategic alliance with Microsoft Corporation (MSFT) to develop innovative solutions to help consumers improve their health. The collaboration with MSFT should enable CVS to accelerate a data-driven, personalized customer experience while complying with the company’s policies on patient privacy and confidentiality.
CVS’s total revenues increased 10.1% year-over-year to $76.60 billion for the fourth quarter, ended Dec. 31, 2021. The company’s adjusted operating income increased 40.8% year-over-year to $4.14 billion. Also, its adjusted EPS came in at $1.98, representing a 52.3% increase year-over-year.
Analysts expect CVS’EPS for its fiscal year 2023 to increase 8.3% year-over-year to $8.97. Its revenue for the quarter ending March 31, 2022, is expected to increase 9.9% year-over-year to $75.13 billion. And it surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 45.4% in price to close the last trading session at $103.60.
CVS’ strong fundamentals are reflected in its POWR Ratings. It has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
It has a B grade for Growth, Value, Stability, and Sentiment. Within the A-rated Medical – Drug Stores industry, it is ranked first out of four stocks. To see the other ratings of CVS for Momentum and Quality, click here.
BDX is a medical technology company that develops, manufactures, and sells a range of medical supplies, devices, laboratory equipment, and diagnostic products. The Franklin Lakes, N.J., company operates through the BD Medical; BD Life Sciences; and BD Interventional business segments.
On Dec. 21, 2021, BDX announced the acquisition of smartphone-enabled at-home medical tests company Scanwell Health Inc. President of Life Sciences for BD, Dave Hickey, said, “This acquisition will enable us to expand and scale our digital capabilities in-house to speed time to market for transformative at-home solutions now and in the future.”
For its fiscal first quarter, ended Dec. 31, 2021, BDX’s BD Medical’s revenue increased 6% year-over-year to $2.39 billion, while BD Interventional’s revenue increased 3.7% year-over-year to $1.11 billion. Also, its cost of sales declined 0.4% year-over-year to $2.57 billion. In addition, its adjusted EPS came in at $3.64, representing a 20% decrease year-over-year.
For the quarter ending June 30, 2022, BDX’s EPS is expected to increase 10.2% year-over-year to $3.02. The company’s revenue for its fiscal year 2023 is expected to increase 4.5% year-over-year to $20.57 billion. It surpassed the consensus EPS estimates in each of the trailing four quarters. And over the past year, the stock has gained 9% in price to close the last trading session at $264.84.
BDX’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system.
It has a B grade for Growth and Stability. Within the Medical – Devices & Equipment industry, it is ranked #35 of 168 stocks. To see the additional ratings of BDX for Value, Momentum, Sentiment, and Quality, click here.
New York City-based CL is a household and consumer products company. It operates in the Oral Personal and Home Care, and Pet Nutrition segments. The company’s Oral, Personal, and Home Care segment sells products that include liquid hand soap, shampoos, and deodorants through Palmolive, Protex, Ajax, Axion, and Softsoap. The company also manufactures pet nutrition products for dogs and cats through Hill’s Pet Nutrition segment.
On Jan.24, 2022, CL and 3Shape announced that they were partnering to introduce Colgate Illuminator, an exclusive, tailored-to-patient teeth whitening tool, to dental clinics across the U.S. This new tool should help deliver an improved patient experience by enabling more accurate consultations.
CL’s net sales increased 2% year-over-year to $4.40 billion for the fourth quarter, ended Dec. 31, 2021. The company’s selling, general and administrative expenses decreased 2.1% year-over-year to $1.59 billion. Its total debt for the fiscal year ended December 31, 2021, fell 4.6% year-over-year to $7.24 billion.
Analysts expect CL’s EPS and revenue for its fiscal 2023 to increase 8.1% and 3.9%, respectively, year-over-year to $3.59 and $18.57 billion. Over the past year, the stock has gained 0.8% in price to close the last trading session at $75.54.
CL’s POWR Ratings reflect solid prospects. The stock has an overall B rating, equating to a Buy in our proprietary rating system.
It has an A grade for Quality and a B grade for Stability. It is ranked #13 of 63 stocks in the Consumer Goods industry. Click here to see the other ratings of CL for Growth, Value, Momentum, and Sentiment.
Headquartered in Watford, U.K., SNN is a medical technology company that designs and manufactures technology. It supports healthcare professionals to return their patients to health and mobility by helping them perform. It serves its customers through global franchises that include Orthopaedics, Sports Medicine and Ear, Nose and Throat, and Advanced Wound Management.
On Jan. 19, 2022, SNN announced the acquisition of Engage Surgical, the only cementless unicompartmental knee system commercially available in the U.S. The acquisition bodes well for SNN because it supports its strategy for growth by transforming its business through innovation and investment and providing differentiation for its customers.
For its fiscal fourth quarter, ended Dec. 31, 2021, SNN’s revenue increased 1.5% year-over-year to $1.34 billion, while its revenue for its fiscal year 2021 increased 14.3% year-over-year to $5.21 billion. The company’s trading profit for its fiscal 2021 came in at $936 million, representing a 37% increase year-over-year.
For its fiscal year 2023, SNN’s EPS and revenue are expected to increase 18.8% and 5.5%, respectively, year-over-year to $2.01 and $5.70 billion. Over the past three months, SNN has declined 2.5% in price to close the last trading session at $31.89.
SNN’s POWR Ratings reflect this promising outlook. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system.
It has a B grade for Growth, Value, Stability, and Quality. Within the Medical – Devices & Equipment industry, it is ranked #4. To see the other ratings of Momentum and Sentiment, click here.
INGR provides food and industrial ingredient solutions to customers worldwide. The Westchester, Ill.-based company is principally involved in producing and selling starches and sweeteners for a range of industries and is managed geographically on a regional basis. Its segments include North America, South America, Asia-Pacific, Europe, the Middle East, and Africa (EMEA). Also, its product lines include starches and sweeteners, animal feed products, and edible corn oil.
On Feb.9, 2022, INGR announced a new equity investment in InnovoPro, a leading food tech chickpea solutions company. Michael Natale, global leader of INGR’s plant-based protein platform, said, “We believe this investment will unlock huge consumer appeal for chickpea protein concentrates. InnovoPro has a strong portfolio of chickpea solutions, and we are excited about the potential for the new applications that this will enable for our customers by capitalizing on the trends shaping the food industry.”
INGR’s net sales for its fiscal year 2021 increased 15.1% year-over-year to $6.89 billion. The company’s adjusted operating income increased 3.9% year-over-year to $685 million. Also, its adjusted EPS came in at $6.67, representing a 7% increase year-over-year.
Analysts expect INGR’s EPS for its fiscal year 2023 to increase 10.7% year-over-year to $7.86. Its revenue for its fiscal year 2022 is expected to increase 9.4% year-over-year to $7.54 billion. It surpassed consensus EPS estimates in three of the trailing four quarters. Over the past six months, the stock has gained 0.2% in price to close the last trading session at $86.49.
INGR’s strong fundamentals are reflected in its POWR Ratings. The company has an overall B rating, which translates to a Buy in our proprietary rating system.
It has a B grade for Value, Stability, and Sentiment. It is ranked #20 of 84 stocks in the B-rated Food Makers industry. Click here to see the other ratings of INGR for Growth, Momentum, and Quality.
CVS shares were unchanged in premarket trading Thursday. Year-to-date, CVS has gained 0.96%, versus a -10.01% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets.
The shares of biosensor diagnostic technology company GBS’s (GBS) have slumped more than 50% in price this year, reflecting investors’ pessimism. The company’s weak financial position seems to be overshadowing the company’s positive developments. So, will the penny stock be able to gain momentum anytime soon? Read on, let’s discuss.
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Biosensor diagnostic technology company GBS Inc. (GBS) in New York City offers various products, including Biosensor Platform Technology, Saliva Glucose Test (SGT), and Saliva Glucose Biosensor (SGB). GBS’ shares have nosedived 89.1% in price over the past year and 80.8% over the past six months. The stock has declined 53.3% year-to-date to close the last trading session at $0.67.
The company had earlier announced plans to commence preparation for clinical trials of its rapid SARS-CoV-2 Antibody test following a clinical validation study. “We believe evidence from the validation study at the Wyss Institute supports the efficacy of our SARS-CoV-2 Antibody test, and we are now in a confident position to commence preparations for the next stage of trials,” said Interim GBS CEO and Chairman of the Board, Dr. Steven Boyages. Also, GBS, in collaboration with Life Science Biosensor Diagnostics Pty Ltd (LSBD), the licensor of the Rapid Saliva Glucose Test, applied for FDA Breakthrough Device Designation to provide LSBD with regulatory approval for its non-invasive, real-time Saliva Glucose test.
However, the company’s weak financial position has raised investor concerns, overshadowing the positive developments.
Here is what could shape GBS’s performance in the near term:
Bleak Financials
For the fiscal second quarter, ended Dec. 31, 2021, GBS’ total revenues declined 37.2% year-over-year to $177,791. Its loss from operations grew 277.9% from its year-ago value to $3.47 million. Also, its net loss came in at $3.46 million, reflecting an increase of 74% year-over-year, while its net loss per share was $0.23. In addition, the company’s trailing-12-month net loss and net loss per share stood at $8.87 million and $0.67, respectively. And its trailing-12-month cash flow from operations and levered free cash flow came in at $9.18 million and $5.53 million, respectively.
Poor Profitability
GBS’ negative 279.46% levered FCF margin is substantially lower than the negative 0.48% industry average. Also, its ROE and ROA of negative 61.42% and 58.24%, respectively, compare with the negative 36.11% and 23.57% industry averages . Furthermore, its 0.11% asset turnover ratio is 66.9% lower than the industry average.
POWR Ratings Reflect This Bleak Prospects
GBS has an overall F rating, which translates to Strong Sell in our proprietary POWR Ratings system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.
The stock has a D grade for Growth, which is consistent with its bleak financial growth.
It has a D grade for Quality, which is in sync with its negative profitability metrics.
Beyond what I have stated above, you can also view GBS’s grades for Sentiment, Stability, Momentum, and Value here.
View the top-rated stocks in the Medical – Devices & Equipment industry here.
Bottom Line
GBS is investing heavily in breakthrough product developments and engages with partners around the globe to initiate clinical studies, build class manufacturing facilities and establish sales partnership opportunities in Asia. However, its financial position is concerning, with analysts expecting its EPS to remain negative this year. Thus, we think it could be wise to avoid the stock for now.
How Does GBS Inc. (GBS) Stack Up Against its Peers?
While GBS has an overall POWR Rating of F, one might want to consider investing in the following Medical – Devices & Equipment stocks with an A (Strong Buy) rating: Fonar Corporation (FONR), Electromed, Inc. (ELMD), and Abbott Laboratories (ABT).
GBS shares fell $0.01 (-1.49%) in premarket trading Wednesday. Year-to-date, GBS has declined -53.31%, versus a -12.36% rise in the benchmark S&P 500 index during the same period.
About the Author: Subhasree Kar
Subhasree’s keen interest in financial instruments led her to pursue a career as an investment analyst. After earning a Master’s degree in Economics, she gained knowledge of equity research and portfolio management at Finlatics.
Best Penny Stocks to Watch This Week? 3 For Your Watch List
Check These 3 Penny Stocks Out For Your List This Week
If you’re looking for penny stocks to buy, there are hundreds to choose from. And as a result of the sheer number of penny stocks out there, investors have to have two things on hand. On one hand, traders need to have a trading strategy. This means knowing what your risk tolerance is and how to use that as an advantage.
And on the other hand, traders need to have a thorough understanding of the stock market right now and what it could do in the future. While this is easier said than done, using these will help to give you the best chance of making money with penny stocks in 2022. Considering that, let’s take a look at three penny stocks to watch this coming week.
With an over 30% gain on Friday, March 4th, Camber Energy is on many investors minds right now. It’s clear that CEI stock has sizable bullish interest after a one month gain of more than 44%. And despite some small hiccups along the way, the overall pattern for CEI stock during that time has been positive.
\Now, there is no company-specific news that drove the price of CEI stock on March 4th. However, we can surmise that the majority of its recent momentum is due to the conflict between Russia and Ukraine. This war has regulated in the price of oil skyrocketing, and subsequently, energy penny stocks doing the same. As a result, CEI has seen several periods of intense ups and downs in the last month or so.
The most recent company specific news however came on February 15th. On the 15th, the company announced that its majority owned subsidiary, Viking Energy, has closed on the acquisition of a proprietary Electric Transmission and Distribution Open Conductor Detection System. This acquisition was made with $21 million in cash and $5 million payable in shares of Viking on closing.
“This technology is extremely important. It truly is difficult to put a monetary value on a solution that can sense a broken power line and cut the electricity flowing through the line before the wire hits the ground. Arcing and sparking energized power lines are hazardous, and difficult to detect using traditional concepts.
Unfortunately, people in places like California, Western Canada, Australia and other parts of the world are fully aware of what can happen when a downed, energized power line makes contact with the ground.”
The CEO and President of Camber and Viking, James Doris
So, with all of this exciting news in mind, do you think CEI stock is worth adding to your list of penny stocks to buy?
Atreca Inc. (NASDAQ: BCEL)
On Friday, March 4th, shares of BCEL stock skyrocketed up by over 211% at market close. This is an incredible gain and comes as the company reported its full year 2021 and fourth quarter financial results. In the results, the company posted positivity regarding clinical activity for its compound, ATRC-101.
“Last year was a highly productive year for Atreca with regard to both clinical development of ATRC-101 and the generation and advancement of other pipeline assets. We are pleased to report additional results from the ATRC-101 program today. The data continue to show a significant association between activity and target expression.”
The CEO of Atreca Inc., John Orwin
Fiscally, the company ended the fourth quarter of 2021 with more than $148 million in cash on hand. And, its research and development expenses for the year came in at $78.3 million. While it did report a net loss of $109.3 million the majority of this was prior to the last three months of the year.
If you’re not familiar, Atreca Inc. is a biopharmaceutical company working on the development of antibody-based immunotherapeutics. Currently, its lead product is known as ATRC-101, which is in studies for treating multiple solid tumor cancers. This is a big deal and shows that the company is working hard to continue growing. So, with all of this in mind, do you think that BCEL stock is a worthwhile addition to your penny stocks watchlist?
Gran Tierra Energy Inc. (NYSE: GTE)
Gran Tierra Energy Inc. is a penny stock that we have covered numerous times over the past few months. And again on Friday, March 4th, shares climbed significantly, ending the day up over 8.5%. This brings its one-month and six-month gains to a staggering 39% and 163% respectively.
Similar to CEI stock, one of the main reasons for the growth of GTE is the energy industry right now. And with tensions in Ukraine only continuing to rise, many investors are showing bullish sentiment on energy as a whole. The most recent news from the company came a few weeks ago when it announced its 2021 year-end reserves. In the results, the company stated that it achieved a 148% PDP and 123% 1P reserves replacement.
“During 2021, a combination of our ongoing reductions in per well drilling, completion and workover costs, our focus on maintaining low operating costs and the strong rebound in oil prices drove significant increases in our NAV per share after tax values to $1.59 per share (1P), up 124% from 2020, and $2.92 per share (2P), up 31% from 2020.”
The CEO and President of Gran Tierra, Gary Guidry
Whether this makes GTE stock worth buying or not is up to you.
Which Penny Stocks Are You Watching Right Now?
Finding the best penny stocks to buy is all about understanding where to look. With such a wide variety of penny stocks out there, it can be difficult.
But, because there is so much information available to all, researching and understanding that information, is crucial to making money with penny stocks. So, with all of that in mind, which penny stocks are you watching right now?
https://www.entrepreneur.com/article/421524
Investors: Stop the Insanity!
The conflict in Ukraine, coupled with concerns about inflation has many investors spooked. This has led to a ‘Wait and See’ mentality with many investors opting to sit on the sidelines. In my commentary below I’ll explain the dangers of this investing approach, share my outlook for the S&P 500 (SPY) in the coming weeks and provide the solution to achieving outperformance in this volatile market. Read on below for more.
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I just read another email from a StockNews customer who says this volatile market has pushed them to the sidelines. And they will “Wait and See” to determine what to do next.
This is investing suicide.
Sorry…just no other way to say it. And yet, this is one of the most common responses by investors when times get tough.
I want to point out the insanity of this approach in the hopes to get people on a more successful investing path.
The Danger of “Wait and See”
On the surface, this seems so logical. To appreciate that the current market condition is rough. The path forward seems unclear. And thus you will wait and see what happens next to then plot your course forward.
Now the reality check…
Think of all these classic investment sayings and how true they are:
“The market climbs a wall of worry”
“Be greedy when others are fearful”
“Buy low and sell high”
These statements may be simple…but they have stood the test of time. Thus, they should be heeded by wise investors at this time.
This is especially true when you appreciate the speed of the modern market where 1 to 3% daily gains are very common. And thus if you wait and see with your money on the sidelines, the stock market could easily run ahead 5-7% in a week.
That is a big hole that most will not dig out of by the end of the year.
Not Convinced? How About This…
War is bullish.
Yes, I said it. And not because I am pro war. Far from it.
What I am is a student of investing. And the academic research is unequivocal on the subject that the market rises during times of military conflict.
To be clear, at first stocks go down on the initial shock of the event. Yet typically a month or so afterwards investors appreciate the bullish effects and a hearty bounce comes with outsized gains to follow.
Why?
Because military conflicts lead to massive increases in government spending which is positive for the economy.
Second, investors begin to realize there is very little net change to daily life. Especially in the US where folks continue to go to work…get paid…and spend all that money on products and services.
This realization will soon hit the market…as it always does. And the market will rebound with gusto.
Those in “wait and see” mode will be left in the dust.
Those who heed the investing lessons of the past, and stay invested in the healthiest companies, will be rewarded with outsized gains.
What To Do Next?
Stay invested.
However, if you are struggling to keep your head above water in this trickly environment, then perhaps investigate strategies that are actually doing quite well in 2022.
Take for instance my Reitmeister Total Return Newsletter, where I use my 40 years of experience to seek out the best stocks and apply a dash of market timing when the need arises.
This newsletter portfolio is actually in positive territory in 2022 while most other investors are getting battered and bruised.
Then there is our POWR Options service that thrives in up and down markets by taking advantage of both Call and Put trades.
In fact, in just the last few months this service has closed an impressive 9 for 9 put trades at a profit—with an average gain of +24.1%.
Let me make it even easier.
You can investigate all 7 of our winning services for investors at one time via a 30 day trial of our POWR Platinum service.
This unique bundle of 7 market beating services, gives you ALL the tools you need to thrive in both up and down markets, including:
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POWR Trends– In depth commentaries and top picks from the most exciting growth trends from EV to Space Exploration to Internet of Things to Genomics and more.
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POWR Ratings Premium – Giving full access to our coveted POWR Ratings for over 5,300 stocks and 2,000 ETFs.
POWR Options– Harness the POWR Ratings through options trading to enjoy higher rewards and lower risk. Service is led by options guru, Tim Biggam.
POWR Stocks Under $10– Our most powerful stock picking strategy, with market shattering +61.63% average annual returns.
For just $1 you can get a 30 day no-risk trial to all 7 of these services, including actionable insights on how to succeed in the current market environment and specific advice on what to buy, when to buy…and just as importantly what to avoid.
So don’t sit on the sidelines waiting to see what will happen next, when you could be profiting today!
Get started with your trial now and start beating the market the rest of the year.
Steve Reitmeister …but everyone calls me Reity (pronounced “Righty”) CEO, StockNews.com & Editor, Reitmeister Total Return
SPY shares closed at $432.17 on Friday, down $-3.54 (-0.81%). Year-to-date, SPY has declined -9.01%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.
Oracle vs. Adobe: Which Infrastructure Software Stock is a Better Buy?
With the rising deployment of enterprise software and services across various industries, prominent companies in this space, Oracle (ORCL) and Adobe (ADBE), should witness increasing demand for their solutions. But which of these two stocks is a better buy now? Read more to find out.
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Oracle Corporation (ORCL) provides products and services that address enterprise information technology environments worldwide. It markets and sells its cloud, license, hardware, support, and services offerings directly to businesses. On the other hand, Adobe Inc. (ADBE) operates as a diversified software company worldwide. It operates through three segments: Digital Media; Digital Experience; and Publishing and Advertising.
With increasing focus on customer-service-driven strategies and normalization of the work-from-home model, the demand for business software and services has increased over the past year. Moreover, the rapid increase in the volume of enterprise data and the growing automation of business processes across several end-use industries are expected to drive the growth of the software infrastructure industry. According to Grand View Research, the global business software and services market is expected to grow at aCAGR of 11.3% by 2028. Therefore, both ORCL and ADBE should benefit.
ORCL has gained 17% over the past year, while ADBE has returned 2.4%. But which of these two stocks is a better buy now? Let’s find out.
Latest Developments
On February 14, 2022, ORCL announced new logistics management capabilities within Oracle Fusion Cloud Supply Chain & Manufacturing. The updates to Oracle Fusion Cloud Transportation Management and Oracle Fusion Cloud Global Trade Management can help organizations reduce costs and risk, improve customer experience, and become more adaptable to business disruptions, thereby increasing its demand.
On December 16, 2021, Shantanu Narayen, chairman and CEO of ADBE, said, “With an estimated $205 billion addressable market, we are well-positioned for significant growth in the years ahead with our industry-leading products and platforms.”
Recent Financial Results
ORCL’s revenue increased 18% year-over-year to $3.53 billion for the fiscal second quarter ended November 30, 2021. The company’s non-GAAP operating income grew 6% year-over-year to $4.86 billion, while its non-GAAP net income came in at $3.38 billion representing a 4% year-over-year increase. Also, its non-GAAP EPS came in at $1.21, up 14% year-over-year.
ADBE’s revenues increased 20% year-over-year to $4.11 billion for the fiscal second quarter ended December 3, 2021. The company’s non-GAAP operating income grew 20.7% year-over-year to $1.86 billion, while its non-GAAP net income came in at $1.54 billion representing a 12.7% year-over-year increase. Also, its non-GAAP EPS came in at $3.20, up 13.9% year-over-year.
Past and Expected Financial Performance
ORCL’s net income and EPS grew at CAGRs of 38.9% and 55.1%, respectively, over the past three years. Analysts expect ORCL’s revenue to increase 4.6% in the current year and 4.5% next year. The company’s EPS is expected to grow 3.4% in the current year and 8.7% next year. Moreover, its EPS is expected to grow at 9.6% per annum over the next five years.
On the other hand, ADBE’s net income and EPS grew at CAGRs of 23% and 24.4%, respectively, over the past three years. The company’s revenue is expected to increase 13.7% in the current year and 14.9% next year. Its EPS is expected to grow 10.4% in the current year and 18.1% next year. Also, ADBE’s EPS is expected to increase at 15.4% per annum over the next five years.
Profitability
ORCL’s trailing-12-month revenue is 2.62 times what ADBE generates. However, ADBE is also more profitable with a gross profit margin and net income margin of 88.18% and 30.55% compared to ORCL’s 79.96% and 24.79%, respectively.
Furthermore, ADBE’s ROA and ROTC of 14.08% and 19.37% are higher than ORCL’s 9.20% and 13.46%, respectively.
Valuation
In terms of trailing-12-month non-GAAPP/E, ADBE is currently trading at 34.15x, 109.9% higher than ORCL’s 16.27x. Moreover, ADBE’s trailing-12-month EV/EBITDA ratio of 24.91x is 105.9% higher than ORCL’s 12.10x.
So, ORCL is relatively affordable here.
POWR Ratings
ORCL has an overall rating of B, which equates to a Buy in our proprietary POWR Ratings system. On the other hand, ADBE has an overall rating of C, which translates to Neutral. The POWR Ratings are calculated considering 118 different factors, with each factor weighted to an optimal degree.
ORCL has a B grade for Value, consistent with its forward non-GAAP P/E of 16.26x, 17% lower than the industry average of 19.60x. However, ADBE has a C grade for Value, in sync with its forward non-GAAP P/E of 33.27x, 69.8% higher than the industry average of 19.60x.
Of the 165 stocks in theSoftware – Application industry, ORCL is ranked #16. In comparison, ADBE is ranked #39.
Beyond what I’ve stated above, we have also rated the stocks for Quality, Growth, Momentum, Stability, and Sentiment.Click here to view all the ORCL ratings. Also, get all the ADBE ratingshere.
The Winner
The increasing scale of operations and rapid cloud migration should drive the software infrastructure market’s growth. While both ORCL and ADBE are expected to gain, it is better to bet on ORCL now because of its lower valuation.
Our research shows that odds of success increase when one invests in stocks with an Overall Rating of Strong Buy or Buy. View all the other top-rated stocks in the Software – Application industryhere.
ADBE shares were trading at $448.86 per share on Friday afternoon, down $10.22 (-2.23%). Year-to-date, ADBE has declined -20.84%, versus a -9.51% rise in the benchmark S&P 500 index during the same period.
About the Author: Nimesh Jaiswal
Nimesh Jaiswal’s fervent interest in analyzing and interpreting financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving a stock’s price is the key approach that he follows while advising investors in his articles.
Penny Stocks To Watch As Traders Play Stock Market Game With Options
Why would anyone trade penny stocks? Let me answer that quickly: to make money in the stock market. Other than the obvious, since penny stocks are so cheap, you can purchase many shares and leverage small sums of capital with the potential of otherworldly gains. The list continues growing as to how many penny stocks explode hundreds or thousands of percentage points within a matter of hours or days.
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There are many risks involved, but if you’re wondering if you can get rich off penny stocks, the short answer is ‘yes,’ but you must know how to get started the right way. Playing a game of darts with stock symbols isn’t the best strategy. Looking for trends and putting together a well-researched list of penny stocks is. Today we do exactly that.
Penny Stocks To Watch With Unusual Options Activity
This isn’t necessarily a stock market game being played. But the options market can tell you some things about market sentiment. I know we talked about how penny stocks are cheap, and while you might not expect them to have options, there are plenty that does. If you’re brand new to options, read our article, Trading Options 101: A Beginner’s Guide, to get up to speed with the basics.
Essentially, traders tend to look at the options market for different reasons. One of these reasons is identifying “unusual activity” or overly bullish and bearish “bets” on specific stocks. For example, if there’s very little Open Interest but all of a sudden you see thousands of contracts traded during a single session, it might raise attention.
If there’s a large volume of Calls trading, the general tone is that “someone” thinks something bullish could happen and vice versa for Puts. However, it’s worth noting that options can also be utilized as a hedge. Options traders may short the Call or Put to collect premiums. They might also buy puts if they have a significant stock position to protect them from the chances of a downside move and the opposite for a prominent short position.
Volume can only tell you so much but is worth noting all the same when looking for the market’s sentiment. The question you need to answer for yourself: are traders just playing a stock market game using options as their “toy,” or does this activity suggest something else?
Ring Energy Inc. (NYSE: REI)
Energy penny stocks are on fire right now. Thanks to the Russia-Ukraine conflict, everything from raw materials companies to refiners and shippers is taking part in the action. In this case, Ring is your run-of-the-mill oil and gas exploration company focused on the Permian Basin in West Texas and New Mexico. In its recent financial and operation update, leadership laid the groundwork for how the company is setting itself up in 2022 to grow. In particular, Q4 sales volumes jumped to more than 9,000 barrels of oil equivalent per day, up 11% from the third quarter. Meanwhile, January saw its 2022 drilling program begin.
“The success of our 2021 drilling program supports our plans of running a continuous one-rig drilling program for the foreseeable future in 2022…Beginning January 1, 2022, nearly 60% of our low-priced hedges rolled off allowing for substantially higher revenue in 2022 assuming the current oil price environment continues. “
Paul D. McKinney, CEO
McKinney isn’t the only one showing optimism in Ring. A look at the options market shows a similar sentiment initially.
REI Stock & Unusual Options Volume
In particular, the REI Call options contracts expiring this month are in focus. The $3.50 and $4 strikes have seen significant volume higher open interest, and the $4 strike, in particular, recorded some unusual activity today. More than 19,000 contracts traded compared to just 2,761 of Open Interest.
Uranium Energy (NYSE: UEC)
Uranium stocks are also part of the energy stock discussion, with miners, refiners, and suppliers benefiting. Thanks to the latest news on the Russia-Ukraine conflict, nuclear power is at the forefront of the discussion. Russia seized a major nuclear plant in Ukraine this week, with sympathy sentiment pushing traders’ attention to nuclear power stocks.
Uranium Energy supplies raw materials for nuclear power production and currently holds two production-ready platforms in Texas and Wyoming. It also has a portfolio of resource-stage uranium projects in Arizona, Colorado, New Mexico, and Paraguay.
Despite an initial drop in price, UEC stock, overall, has held its uptrend over the last few weeks. Friday’s action was much more volatile than other sessions. However, by early afternoon, the penny stock managed to break back above $3.70. This bullishness was further echoed in the options market as well.
UEC Stock & Unusual Options Volume
In the case of UEC stock, we looked at the March and April contracts. In particular, UEC’s April 14th $4 Calls saw unusual volume on Friday. It saw more than 1,300 contracts trade compared to just 663 of Open Interest. Meanwhile, the March Call contracts, as a whole, showed a considerable level of Open Interest for all strikes compared to the same strikes for the Put contracts. Does this mean the market is taking an even more bullish bet on UEC stock, or is this a hedge for a pending drop?
Exela Technologies Inc. (NASDAQ: XELA)
We’ve seen a trend in the retail market that involves penny stocks under $1. These are some of the cheapest penny stocks today and can become a source of enormous volatility. Even the slightest move of a few cents can equate to a large percentage move. Exela Technologies is one of the penny stocks under $1 that seems to have gained even more attention among options traders. We’ll discuss more below.
One of the biggest catalysts placing XELA stock on traders’ radars was a news update earlier this year. The company announced that it had renewed a $35 million contract with a consulting firm. Exela also announced a 100 million share buyback at $1 per share through an exchange offer of new notes. At the time, it represented a premium of more than 80%. While the exchange offer was to have closed last month, it was recently extended to expire later this month.
XELA Stock & Unusual Options Volume
As this exchange offering has taken place, the options market seems to have woken up a bit more. In particular, the March 18th $1 and $2.50 Calls came to light. Both have Open Interest of between 26,000 and 46,791 contracts. What’s more, the $1 strike calls saw another surge of volume today, trading more than 2,400 contracts before the end of the day.
Finding Top Penny Stocks To Buy
This is just one way to look for penny stocks to add to your watch list. Sentiment has become a critical driver for retail traders in particular. Whether it’s unusual options activity or above-average trading volume, news, filings, a mix of each – data is king. Knowing how to use that data to your advantage is also just as important. Based on this info, are any of these names on your list of penny stocks right now?
If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!
https://www.entrepreneur.com/article/421453
3 Hard-Hit Tech Stocks Wall Street Predicts Will Rebound by 50% or More
The tech market’s valuations declined earlier this year amid concerns over the Fed’s anticipated monetary policy tightening. However, this reaction might be favorable for the long-term growth of the sector. Last week, the market staged a comeback after tech stocks led a rally from their 11-month lows. Amid this movement, Wall Street analysts expect the hard-hit tech stocks NVIDIA (NVDA), RingCentral (RNG), and Wix.com (WIX) to rally by 50% or more in price. Read on.
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The tech market saw a steep correction in its valuations, following a pandemic-driven boom, in the first weeks of this year, as inflation rose to historic heights and the Federal Reserve signaled an increase in benchmark interest rates. However, this is expected to be a boon for the market’s long-term health. Analysts have argued that a shift in investor sentiment could be a precursor to a healthy long-term cycle.
Last Thursday, the stock market staged a striking comeback due to a sharp rebound in tech stocks, which had retreated to 11-month lows, amid the Russia-Ukraine conflict, as the Biden administration announced export restrictions against Russia but did not ban the country’s use of the SWIFT International Payment system, seemingly giving rest to investor concerns.
Given this backdrop, Wall Street analysts expect the hard-hit tech stocks NVIDIA Corporation (NVDA), RingCentral, Inc. (RNG), and Wix.com Ltd. (WIX) to rally by 50% or more in the near term.
NVDA in Santa Clara, Calif., is a visual computing company that operates worldwide under Graphics and Compute & Networking segments. The company offers GeForce GPUs for gaming and PCS, GeForce NOW Gaming Streaming devices, and Data Center platforms and systems for AI. It has a market capitalization of $582.88 billion.
On February 16, Jaguar Land Rover announced the formation of a multi-year strategic partnership with NVDA to jointly develop and deliver next-generation automated driving systems and AI-enabled services and experiences for its customers. NVDA should stand to benefit from this partnership.
On January 4, NVDA unveiled more than 160 gaming and Studio GeForce®-based laptop designs, as well as a new desktop and laptop GeForce RTX® GPUs and technologies. The new products and designs might add to the company’s revenue stream.
For the fiscal fourth quarter, ended January 30, NVDA’s revenue increased 52.8% year-over-year to $7.64 billion. Its non-GAAP income from operations rose 76% from the prior-year quarter to $3.68 billion. Its non-GAAP net income and non-GAAP net income per share improved 71.2% and 69.2% from the same period last year to $3.35 billion and $1.32, respectively.
Analysts expect NVDA’s EPS to increase 41.8% year-over-year to $1.29 for its fiscal quarter ending April 30, 2022, while the Street expects its revenue to rise 43.3% from the prior-year period to $8.11 billion for the same period. Moreover, NVDA has an impressive surprise earnings history; it has topped consensus EPS estimates in each of the trailing four quarters.
The stock has gained 69.6% in price over the past year but declined 20.2% year-to-date to close yesterday’s trading session at $234.77.
Among the 22 Wall Street analysts rating NVDA, 19 have rated it Buy, while three have rated it Hold. The $362.22, 12-month median price target indicates a 54.3% potential upside. The price targets range from a low of $250.00 to a high of $400.00.
San Mateo, Calif.-based RNG operates as a Software-as-a-Service solutions provider that enables a business to communicate, collaborate, and connect. The company’s product offerings include RingCentral Office, a communication and collaboration provider across various modes, and RingCentral Contact Center, a collaborative contact center solution.
On March 1, RNG introduced two new products to meet the current and evolving demands in education. The RingCentral Education Essentials™ and RingCentral Education Standard™ offerings are designed to provide flexible solutions for virtual or hybrid classrooms or campus. Both solutions are expected to be available by the end of March and might add to the company’s revenue stream.
On February 17, Deutsche Telekom, a national network and service provider in Germany and RNG, announced the expansion of their partnership to offer customers an end-to-end communication and collaboration solution called RingCentral X powered by Telekom. The solution should stand to benefit RNG by leveraging Deutsche Telekom’s high-quality access products and strong brand presence.
RNG’s total revenues increased 34.1% year-over-year to $448.50 million in its fiscal fourth quarter, ended December 31. Its gross profit rose 28.4% from the prior-year quarter to $312.48 million. Its non-GAAP net income and non-GAAP net income per share came in at $36.64 million and $0.39, respectively, up 37.2% and 34.5% from the prior-year period.
The $0.34 consensus EPS estimate for the quarter ending March 31, 2022, indicates a 25.9% year-over-year increase. And the $458.67 million consensus revenue estimate for the same period reflects an improvement of 34.9% from the prior-year quarter. In addition, RNG has topped consensus EPS estimates in each of the trailing four quarters.
The stock has declined 32.8% in price year-to-date but has gained 1.3% over the past five days to close yesterday’s trading session at $125.83.
Of the 24 analysts rating RNG, 21 have rated the stock Buy, while three have rated it Hold. The 12-month median price target of $236.14 indicates an 87.7% potential upside. The price targets range from a low of $165.00 to a high of $300.00.
WIX, headquartered in Tel Aviv, Israel, is a developer and marketer of a cloud-based platform that empowers anyone to create a website or web application internationally. The company’s offerings include Wix Editor, Wix ADI, Corvid by Wix, Ascend by Wix, and Wix Logo Maker.
On February 10, Yellow Pages Limited, a Canadian digital media and marketing company, announced that it has entered a strategic partnership with WIX to strengthen its website offering. On January 13, Deepcrawl, a technical SEO and website health SaaS platform, and WIX announced a partnership for enabling users to harness Deepcrawl’s SEO technology on the WIX platform. Both the partnerships might prove to be beneficial for the company.
And on December 1, PayPal Holdings Inc. (PYPL) announced that WIX merchants could offer PYPL’s PayPal Credit and PayPal Pay in 4 services. Amit Sagiv, Co-head of Payments at WIX, said, “By continuing to offer flexible payment methods to our merchants like PayPal Credit and PayPal Pay in 4, we’re helping merchants reach more customers by providing them with more options at checkout and ultimately increasing their conversion.”
For its fiscal fourth quarter, ended December 31, WIX’s revenue increased 16.2% year-over-year to $328.34 million. This can be attributed to a 15.4% rise from the prior-year quarter in creative subscriptions revenue to $246.67 million. Its gross profit improved 11.3% from the same period in the prior year to $199.54 million.
The Street’s EPS estimate for fiscal 2023 indicates a 62.1% year-over-year increase, while its $1.72 billion revenue estimate for the same year reflects a 17.2% year-over-year increase. WIX has beaten consensus EPS estimates in each of the trailing four quarters.
WIX’s shares have declined 45.7% in price year-to-date to close yesterday’s trading session at $85.71. It has gained 5.1% in price over the past five days.
Among the 15 Wall Street analysts rating WIX, 10 have rated it Buy, while five have rated it Hold. The 12-month median price target of $137.50 indicates a 60.4% potential upside. The price targets range from a low of $85.00 to a high of $250.00.
NVDA shares were trading at $243.35 per share on Wednesday afternoon, up $8.58 (+3.65%). Year-to-date, NVDA has declined -17.26%, versus a -7.71% rise in the benchmark S&P 500 index during the same period.
About the Author: Anushka Dutta
Anushka is an analyst whose interest in understanding the impact of broader economic changes on financial markets motivated her to pursue a career in investment research.
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