In the past three months, Concentrix (CNXC) has grown well, increasing by 8.9%.

Although the share price is not cheap, it’s just one-third of its 52 week high of $180.79 while trading well above its 50 day moving average at $168.76.

However, this doesn’t mean the stock is going to retreat. The stock still has catalysts that can help boost the price. This is why I believe this stock should be bought. (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 is available to businesses around the globe, which includes more than 100 Fortune Global 500 members.

Concentrix products were specifically created for vertical markets within the financial, technology and energy sectors.

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.

By $10 million, total revenue beat analyst projections.

An adjusted EPS rate of $2.49 was reported by the company, which represents a leap of 62.7% over the quarter prior to that.

The adjusted EBITDA margin rate, 15.4%, increased by 220 basis point, while the operating cash flow, $93 million, increased by 1.8%.

Looking Forward

Customer experience is essential for any business that wants to expand its sales.

Concentrix has technologies that improve customer loyalty and satisfaction.

Concentrix’s recent sales trends and profit margins show that it continues to earn a reputation for its innovative solutions.

Analysts estimate that the total revenue for Fiscal Year 2021 will be between $5.56 billion and $5.6 billion. However, Concentrix targets a total revenue range of $5.49 to $5.52 trillion.

Wall Street’s Take

In the past three months, one Wall Street analyst has issued a 12-month price target for CNXC. Vincent Colicchio, Barrington’s chief analyst has given the stock a Buy rating and set a target price of $202 with a 14.9% upside potential.

Summary

Concentrix is operating well, and holds a profitable portfolio of clients. They are all members of Fortune Global 500. Because its business is expanding, the future seems bright.

Although this isn’t a guarantee of a rising stock price, chances that it will are small to the contrary at present.

Disclosure: Alberto Abaterusso didn’t hold any positions in the securities discussed in this article at the time it was published.

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