Concentrix is the IBD Stock of the Day as the call-center operator nears an entry point amid early 2022 carnage in the tech sector.
Spun off in late 2020 by Synnex, Concentrix stock recently forged a double-bottom base. The double-bottom chart pattern looks sort of like the letter "W." It features two distinct sell-offs.
In addition, CNCX stock has registered a number of high-volume gains the past few weeks. As a result, the relative strength line of CNXC stock is basically at highs.
It compares the stock's daily price performance to the S&P 500. An upward-sloping RS line means the stock is outperforming the S&P 500. A downward-sloping line means the stock is lagging the S&P 500.
Concentrix stock holds an entry point of 187.04.
CNXC stock hosted an analyst day on Jan. 25 and provided long-term guidance. The company expects annual organic revenue growth of at least 9% from 2023 to 2025, with total revenue exceeding $10 billion by 2025.
Concentrix Stock Out-Performs Software Sector Benchmark
Shares of Concentrix were up nearly 3% to close at 181.42 on the stock market today. CNXC stock has edged up nearly 2% in 2022. Meanwhile, a closely watched software benchmark — the iShares Expanded Tech-Software ETF (IGV) has contracted 15%.
Shares in Fremont, Calif.-based Concentrix hit an all-time high of 191.35 on Nov. 18 last year. More companies outsourced call center operations that handle customer support amid the coronavirus pandemic.
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."
Synnex Spun Off Concentrix Stock In 2020
Synnex decided to spin off Concentrix in December 2020. Meanwhile, Synnex retained a computer and electronics distribution business.
The call center services business had been consolidating. Then Synnex agreed to buy Cincinnati-based Convergys for $2.4 billion in mid-2018.
In the November quarter, Concentrix said revenue rose nearly 13% to $1.466 billion while adjusted earnings rose 44% to $2.99 per share. Analysts had projected revenue of $1.46 billion.
For the current quarter ending in February, the company forecast revenue in a range of $1.51 billion to $1.54 billion, about 3% above analyst estimates at the midpoint of the company's guidance.
Concentrix Accumulation/Distribution Rating
Concentrix stock holds a Relative Strength Rating of 90 out of a best possible 99.
In addition, Concentrix holds an Accumulation/Distribution Rating of B 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.
IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watchlists for issues such as Concentrix stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
Microsoft Beats Quarterly Estimates, Gives Upbeat Guidance
Best Growth Stocks To Buy And Watch: See Updates To IBD Stock Lists
Chart Reading For Beginners: Nvidia, Amazon, Pinterest Reveal This Key Investing Skill
How To Use The 10-Week Moving Average For Buying And Selling
