IBD Stock Analysis
- Shares recently pulled back to their 50-day moving average
- Stock could be actionable if it can get back above its 21-day line
- Company holds a Relative Strength Rating of 79 out of a possible 99
Industry Group Ranking
* Not real-time data. All data shown was captured at
1:40PM EDT on
Concentrix stock popped in early 2021 after it reported results for the November quarter. In February, Concentrix formed a flat base with an entry point of 123.58.
Concentrix stock took off again after it reported first-quarter earnings on March 24. Shares in Concentrix hit an all-time high of 163.28 on April 26.
Now, the company’s stock has pulled back to its 50-day moving average. From a technical view, there’s also the tighter 21-day exponential moving average at work. Concentrix stock could be actionable if it gets above its 21-day line.
Shares added 1.1% to close at 149.79 Thursday.
Concentrix Stock: Double-Digit Gains In Results
For the quarter ended Feb. 28, Concentrix said revenue rose nearly 14% to $1.35 billion while adjusted earnings rose 70% to $1.72 per share.
Adjusted earnings before interest, taxes, depreciation and amortization, known as EBITDA, came in at $212.6 million, or 15.7% of revenue, compared with 14.8% of revenue in the year-earlier period.
Concentrix stock holds a Relative Strength Rating of 79 out of a best possible 99.
The call center services business had been consolidating. Concentrix’s former parent, Synnex, agreed to buy Cincinnati-based Convergys for $2.4 billion in mid-2018. Then, more companies outsourced call center operations that handle customer support last year amid the coronavirus pandemic.
Synnex decided to spin off Concentrix on Dec. 1. Synnex retained a computer and electronics distribution business.
Rivals Include Alorica, Teleperformance
Concentrix competes in the call-center business versus Alorica, Teleperformance and others. The company describes itself as a “global provider of customer experience solutions and technology.”
In a streamlining move, Fremont, Calif.-based Concentrix on May 17 sold off its insurance services arm to private equity firm Abry Partners and Hoplon Capital.
In addition, Concentrix holds an Accumulation/Distribution Rating of C, according to IBD Stock Checkup.
The A/D rating analyzes price and volume changes in a stock over the past 13 weeks trading. The rating, on an A+ to E scale, measures institutional buying and selling in a stock. A+ signifies heavy institutional buying; E means heavy selling. Think of the C grade as neutral.
The Computer Software-Enterprise group that includes Concentrix ranks a weak No. 166 out of 197 groups tracked.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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