In the past three months, Concentrix (CNXC) has grown well, increasing by 8.9%.
The share price doesn’t seem cheap, as it is just a whisper away from its 52-week high of $180.79, while trading above its 50-day moving average of $168.76.
This doesn’t necessarily imply a retreat, as the stock holds some catalysts that could boost the share price further. Thus, I am bullish on this stock. (See SNXC stock charts on TipRanks)
Based in Fremont, California, Concentrix supplies technology and solutions for businesses that want to improve their customer service performance.
Concentrix serves businesses all over the world, including more than 100 members of the Fortune Global 500.
Concentrix products are specifically designed for companies that operate in vertical markets in the technology, healthcare, financial services, energy industries.
From Q3
For the three-month period that ended on August 31, Concentrix sold technologies and solutions for total revenue of approximately $1.4 billion, reflecting 20.1% growth on a year-over-year basis.
Total revenue beat analysts’ projections by $10 million.
The company reported an adjusted EPS of $2.49, a 62.7% jump from the prior-year quarter.
Additionally, the adjusted EBITDA margin rate of 15.4% increased by 220 basis points, and the operating cash flow of $93 million increased by 1.8%.
Looking Forward
Customer experience is essential for any business that wants to expand its sales.
Concentrix offers technologies and solutions that aim to improve the company’s sales techniques, and increase customer retention and customer satisfaction.
The most recent trends in sales and profit margins indicate that Concentrix continues to build up a market reputation regarding its innovative solutions.
For Fiscal Year 2021, the company targets total revenue of $5.56 billion to $5.6 billion, while analysts estimate it to come in the range of $5.49 billion to $5.52 billion.
Wall Street’s Take
In the past three months, one Wall Street analyst has issued a 12-month price target for CNXC. Barrington’s Vincent Colicchio has assigned the stock a Buy rating, and a price target of $202 (14.9% upside potential).
Summary
Concentrix is operating well, and holds a profitable portfolio of clients. Most of them are also members of the Fortune Global 500. Its business is growing, so the future looks promising.
This is not a guarantee that the stock price will continue to rise, but chances against it are, as of now, small.
Disclosure: At the time of publication, Alberto Abaterusso did not have a position in any of the securities mentioned in this article.
Disclaimer: The information contained in this article represents the views and opinion of the writer only, and not the views or opinion of TipRanks or its affiliates, and should be considered for informational purposes only. TipRanks makes no warranties about the completeness, accuracy or reliability of such information. Nothing in this article should be taken as a recommendation or solicitation to purchase or sell securities. Nothing in the article constitutes legal, professional, investment and/or financial advice and/or takes into account the specific needs and/or requirements of an individual, nor does any information in the article constitute a comprehensive or complete statement of the matters or subject discussed therein. TipRanks and its affiliates disclaim all liability or responsibility with respect to the content of the article, and any action taken upon the information in the article is at your own and sole risk. The link to this article does not constitute an endorsement or recommendation by TipRanks or its affiliates. Past performance is not indicative of future results, prices or performance.
