ExlService Holdings is Wednesday's pick for IBD 50 Growth Stocks To Watch. Shares of the leading data analytics advisory and artificial intelligence company are relatively flat after two days of losses amid recent market weakness.
ExlService has a history of steady earnings and sales growth. The stock fell below the buy zone from a flat base but is trying to recover.
ExlService provides data analytics and artificial intelligence solutions used in decision making, fraud detection, risk management and marketing solutions. It serves the insurance, health care, financial services, media, retail and energy industries across six continents.
The IBD 50 stock ranks No. 1 out of 22 names in the Commercial Services-Outsourcing group, which ranks 51st out of the 197 industry groups that Investor's Business Daily tracks.
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ExlService Stock Tries To Shake Off Losses
Shares broke out of a flat base with a 47.37 buy point in late January and reached a record high of 52.43 on Feb. 7. The stock deteriorated and fell below the point Tuesday creating a round trip sell signal.
Now, ExlService stock is currently hovering around the buy point as the stock seeks direction. But it sits below its 50-day moving average, according to MarketSurge chart analysis.
The stock's relative strength line is starting to trend sideways after weakening in February.
Data Analytics Leader Shows Steady Profit Growth
On Feb. 25, ExlService reported better-than-expected earnings and sales for the fourth quarter. Profit growth accelerated to 26% from 11% and 19% in the prior two quarters. And sales increased 16%, up from 11% and 15% in the prior two quarters.
It also predicted full-year 2025 earnings of $1.83 to $1.89 a share, which equates to an 11% to 14% increase over the prior year. Analyst forecasts call for 14% per-share earnings growth for 2026.
Management also gave a revenue outlook of $2.025 billion to $2.060 billion.
Quarterly earnings estimates call for an average 13% rise over the next four quarters. Meanwhile, sales growth forecasts show an average of around 11% over the same time period.
Its IBD Earnings Stability factor of 6 out of 99 possible — with a lower number being better — indicates stable earnings over the last three to five years. It also boasts a best-possible 99 Composite Rating and a 97 Earnings Per Share Rating.
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