The major stock indexes rallied last week, and today’s index futures indicate bullish investor sentiment. A solid start to the third-quarter earnings season is the key catalyst. The market also received support from news that…
initial jobless claims fell below 300,000 for the first time since the pandemic.
Though the inflationary environment and supply chain constraints remain concerns, continuing low interest rates and solid corporate earnings should keep supporting the market’s momentum in the near term.
Therefore, we think it could be wise to bet on quality stocks SS&C Technologies Holdings, Inc. (SSNC – Get Rating), Amdocs Limited (DOX – Get Rating), Criteo S.A. (CRTO – Get Rating), and EchoStar Corporation (SATS – Get Rating). They all look undervalued at their current price levels.
SSNC is a hedge fund, private equity administrator, and mutual fund transfer agency that is based in Windsor, Conn. The company owns and operates securities accounting, front-to-back-office operations, regulatory reporting, and healthcare information processes. Its products and services also allow professionals in the financial services and healthcare industries to automate complex business processes.
This month, SSNC was selected as administrator and technology partner by Mammoth Scientific, a health science and technology venture capital firm, for its inaugural $100 million fund. SSNC’s private-markets offerings should enable start-ups like Mammoth to market and facilitate integrated operations quickly through this collaboration.
SSNC’s total revenues for the second quarter, ended June 30, 2021, increased 10.6% year-over-year to $1.26 billion. The company’s gross profit grew 16.4% from its year-ago value to $595 million. Its operating income rose 29.7% from the prior-year quarter to $312.9 million. And the company’s net income increased 12% year-over-year to $189.8 million.
Analysts expect SSNC’s revenue to increase 6.3% year-over-year to $4.97 billion in its fiscal year 2021. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. In addition, its EPS is expected to increase 11.9% in the current year.
In terms of forward EV/Sales, SSNC is currently trading at 4.97x, which is 18.9% lower than the 4.18x industry average. In addition, its 15.12x forward non-GAAP P/E is 38.8% lower than the 24.7x industry average. SSNC’s stock price has surged 9.6% over the past nine months and 12.7% over the past year.
SSNC’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
Also, the stock has a B grade for Value, Sentiment, and Quality. We’ve also graded SSNC for Growth, Stability, and Momentum. Click here to access all SSNC’s ratings. SSNC is ranked #3 of 60 stocks in the Software – Business industry.
DOX is a software services provider that provides solutions to the communications, PayTV, entertainment, and media industry. The company’s services include managed services, digital business operations, quality engineering services, cloud services, consulting services, and integration services. DOX is headquartered in Saint Peter Port, the Channel Islands.
Last month, DOX was selected to provide business support systems by Orange for Europe’s first 5G Stand Alone (SA) experimental cloud network. Using its agility, scalability, and cloud-native automation platform, DOX intends to…
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