/Jack%20Henry%20%26%20Associates%2C%20Inc_%20logo%20on%20smart%20phone-by%20Piotr%20Swat%20via%20Shutterstock.jpg)
Monett, Missouri-based Jack Henry & Associates, Inc. (JKHY), functions as a fintech company that connects people and financial institutions through technology solutions and payment processing services. With a market cap of $12.9 billion, the company also performs data conversion and software installation and customization for the implementation of its systems along with continuing customer maintenance.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and JKHY fits right into that category with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the information technology services industry. JKHY's investment in R&D demonstrates its commitment to innovation, enhancing existing products and leading in new financial technologies. Its flexible on-premise and cloud-based solutions, combined with exceptional customer service and robust data security, drive strong client retention and position JKHY as a trusted partner for financial institutions.
Despite its notable strength, JKHY slipped 6.8% from its 52-week high of $189.63, achieved on Nov. 6. Over the past three months, JKHY stock rose 1.8%, underperforming the S&P 500 Index’s ($SPX) 4% gains during the same time frame.
In the longer term, shares of JKHY rose 8.2% on a YTD basis and climbed 8.6% over the past 52 weeks, underperforming SPX’s YTD gains of 24.3% and 26.2% returns over the last year.
To confirm the bullish trend, JKHY has been trading above its 200-day moving average since late August. However, the stock is trading below its 50-day moving average mid-November.
On Nov. 5, JKHY shares closed up marginally after reporting its Q1 results. Its revenue of $601 million, beat Wall Street forecasts of $600.8 million. The company’s EPS was $1.63, surpassing analyst estimates of $1.61. JKHY expects full-year EPS to be between $5.78 and $5.87, and expects adjusted revenue in the range of $2.35 billion to $2.38 billion.
JKHY’s rival, Fidelity National Information Services, Inc. (FIS) has taken the lead over the stock, with a 35.6% uptick on a YTD basis and 38.4% gains over the past 52 weeks.
Wall Street analysts are moderately bullish on JKHY’s prospects. The stock has a consensus “Moderate Buy” rating from the 17 analysts covering it, and the mean price target of $191.64 suggests a potential upside of 8.4% from current price levels.
