Endava Plc Cl A . Ads
Endava Plc Cl A . Ads
IBD stock analysis
- DAVA stock approached 143.60 buying points of 7-week consolidation
- RSI line reaches new highs in a bullish signal
- With the market correction, investors should be careful
Industry group classification
* Not real time data. All data shown was captured at 1:55 PM EST on 01/10/2021.
technology service provider indava (case, call) Do IBD stock today Its relative strength line reached a new high in an unstable market. Endava stock is approaching its entry point after announcing fourth-quarter fiscal earnings that beat expectations.
DAVA last reported its June quarter earnings, which were released on September 28. The technology services company also released fiscal 2022 revenue guidance above consensus estimates.
UK-based Endava belongs to the Computer Technical Services Industry group along with Accenture (ACN), Epam . systems (EPAM) And globant (Globe). The IT services group ranks eighth out of the 197 industry groups tracked by the IBD.
Endava focuses on new technology, custom product development, and digital transformation business. Its largest clients are in the areas of finance, telecommunications and retail. Founded in 2000, the company is headquartered in London.
Bank customers bright spot
The Endava stock has a relative strength rating of 95 out of the top 99 possible. The 95 RS rating means Endava stock outperforms 95% of all stocks in terms of price strength. The bigger winners in the market usually get an 80 or better RS rating.
Meanwhile, the IT services company line relative force Reached a new level. Stocks that show strength during market corrections often become leaders in the next uptrend.
In the June quarter, Endava’s revenue increased 65% to $184.6 million including acquisitions. Earnings per share jumped 104% to 57 cents.
Endava expects fiscal revenue growth for 2022 in the range of 38% to 40%.
“Helped by acceleration from North America and healthy growth across the payments/banking segment, DAVA delivered another strong quarter,” Susquehanna analyst James Friedman said in a report.
“With the support of the sharp increase in new accounts and average spending, visibility across geographies and verticals has improved,” he added.
DAVA Stocks: Hiring Increase
Compact stock, Endava holds a Compound classification From 98, according to IBD stock check. The composite rating for IBD combines five separate proprietary ratings for basic and technical performance. The best growth stocks have a composite rating of 90 or better.
However, Deutsche Bank analyst Brian Keane has a hold rating on Endava’s stock.
“DAVA Inventory continues to expand its reach with existing customers with the addition of new logos as the total number of customers grows to 615 (from 416 a year ago),” Kane said in a report. “A large number of new small projects have been brought online which DAVA anticipates will expand to include larger engagements.”
Indava acquisition spree
“Due to the acceleration in demand, net employment increased in the June quarter with total headcount rising 34% year-over-year, to 8,883,” he added.
Meanwhile, Endava was an acquisition. In 2019, it bought German IT services company Exozet. Last year, Endava acquired Dublin-based Comtrade Digital Services, a company that provides software engineering services and solutions.
In North America, Endava purchased Levvel in April. A month earlier, it bought Croatia-based Fife with its US subsidiary.
“The acquisition-focused capital allocation strategy will allow the company to continue to diversify its revenue streams and digital capabilities,” James Fossett, an analyst at Morgan Stanley, said in a report.
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