Sources: Appfire's Owners Explore Sale Of Stake In Collaboration Software Maker

Integer Holdings ITGR witnessed strong momentum year to date. Shares of the company have gained 21.9% compared with 5.4% growth of the industryin the same time frame. The S&P 500 Composite has risen 14.3% during the same period.

With healthy fundamentals and strong growth opportunities, this Zacks Rank #3 (Hold) company appears to be a solid wealth creator for its investors at the moment.

Plano, TX-based Integer Holdings manufactures and develops medical devices and components primarily for original equipment manufacturers.

Integer Holdings operates through two segments — Medical Sales and Non-Medical Sales. Medical Sales has three sub-segments — Advanced Surgical, Orthopedics and Portable Medical (AS&O); Cardio and Vascular (C&V); and Cardiac Rhythm Management & Neuromodulation (CRM&N).

Companies are actively pursuing automation solutions to enhance productivity and streamline their operations. Therefore, investors could consider buying fundamentally sound tech stocks, DocuSign, Inc. , Box, Inc. , and RingCentral, Inc. with explosive potential.

Businesses are showing a growing interest in technology solutions that enhance business operations and boost efficiency. Services like cloud computing, cybersecurity, and artificial intelligence are among the most in-demand. Revenue in the IT services sector is expected to grow at a CAGR of 5.8% by 2029.

Additionally, the global Software as a Service (SaaS) market is propelled by the increasing dependence on SaaS solutions that provide real-time threat intelligence and monitoring, the growing need for payment gateways and inventory management in e-commerce, and the expanding use of customer relationship management (CRM) solutions.

IMARC Group expects the global SaaS market to grow at a CAGR of 15.5% by 2032.

Given these favorable industry trends, let us dive deep into the fundamentals of the top tech stocks, beginning with the third choice:

Stock #3: DocuSign, Inc. (DOCU)

DOCU offers electronic signature solutions internationally. The company provides an e-signature solution that enables the sending and signing of agreements, Contract Lifecycle Management that automates workflows, Document Generation streamlines the process of generating new, custom agreements, and more.

Over the past three years, DOCU’s revenue has grown at a CAGR of 20%. Also, the company’s total assets and levered free cash have increased at CAGRs of 8.4% and 19.9%, respectively, over the same period.

On June 4, DOCU announced the upcoming launch of its new Docusign Connector for SAP Ariba solutions, which is a new offering to automate workflows between Docusign CLM and SAP Ariba solutions to help businesses accelerate time to value and eliminate friction in source-to-pay agreement processes.

The new connector will be available globally starting from September. The launch reinforces DOCU’s commitment to its partnership with SAP and its vision to transform agreement processes across the source-to-pay workflow.

On May 31, DOCU acquired Lexion, a leading AI-powered agreement management company. The strategic acquisition strengthens DOCU’s Intelligent Agreement Management (IAM) position and introduces new AI-assisted capabilities to the Docusign IAM platform.

For the first quarter that ended April 30, 2024, DOCU’s total revenue increased 7.3% year-over-year to $709.64 million. Its non-GAAP gross profit rose 6.5% from the year-ago value to $582.17 million. The company’s non-GAAP income from operations of $202.09 million indicates growth of 15% from the prior year’s quarter.

In addition, the company’s non-GAAP net income came in at $172.84 million and $0.82 per share, up 15.1% and 13.9% from the prior year’s quarter, respectively.

As per the company’s second-quarter 2024 guidance, DOCU expects total revenue between $725 million and $729 million, and its subscription revenue is expected to range from $705 million to $709 million. For the full year, the company expects total revenue of $2.92 billion - $2.93 billion and subscription revenue of $2.84 billion to $2.85 billion.

Analysts expect DOCU’s revenue and EPS for the second quarter (ended July 2024) to increase 5.8% and 11.8% year-over-year to $727.23 million and $0.80, respectively. Moreover, the company topped the consensus revenue and EPS estimates in all four trailing quarters.

DOCU’s stock has surged 32.4% over the past nine months and 14.5% over the past year to close the last trading session at $56.46.

DOCU’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

DOCU has an A grade for Growth and Quality and a B for Value. It is ranked first among 18 stocks in the A-rated Software - SAAS industry.

Box, Inc. (BOX)

BOX provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device. It serves financial services, health care, government, and legal services industries internationally.

On June 27, 2024, BOX announced powerful enhancements to BOX AI, including unlimited queries for Enterprise Plus customers, integration with GPT-4, and support for more file types. New features are expected to improve content management and workflow efficiency using advanced AI capabilities.

BOX’s revenue grew at a CAGR of 10% over the past three years, and its EBITDA grew at a CAGR of 23% during the same period.

In terms of the trailing-12-month Return on Total Capital, BOX’s 6.99% is 146.2% higher than the 2.84% industry average. Likewise, its 11.73% trailing-12-month Return on Total Assets is 440% higher than the industry average of 2.17%. Its 0.92x trailing-12-month asset turnover ratio is 48.9% higher than the industry average of 0.62x.

BOX’s revenues for the first quarter ended April 30, 2024, increased 5.1% year-over-year to $264.66 million. Its non-GAAP gross profit increased 8.1% year-over-year to $212.18 million. The company’s non-GAAP operating income increased 22.7% year-over-year to $70.40 million.

Additionally, its non-GAAP attributable net income increased 22.9% year-over-year to $58.40 million. Its non-GAAP attributable net income per share increased 21.9% year-over-year to $0.39. Also, the company’s non-GAAP free cash flow came in at $123.24 million, representing an increase of 13.9% year-over-year.

BOX expects its revenue for the quarter ended July 31, 2024, to be between $268 million and $270 million, showing a 3% increase year-over-year. Also, its non-GAAP diluted net income per share is expected to be between $0.40 and $0.41.

Analysts expect BOX’s EPS and revenue for the quarter ended July 31, 2024, to increase 12.5% and 3% year-over-year to $0.41 and $269.20 million, respectively. It surpassed the revenue and EPS estimates in three of the trailing four quarters. Over the past nine months, the stock has gained 6.8% to close the last trading session at $28.01.

BOX’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.

The stock has an A grade for Quality and Growth and a B for Value. BOX is ranked #8 in the Technology - Services industry.

Beyond what is stated above, we’ve also rated BOX for Sentiment, Stability, and Momentum. Get all BOX ratings here.

RingCentral, Inc. (RNG)

RingCentral, along with its subsidiaries, provides cloud communications, video meetings, collaboration, and contact center software-as-a-service solutions worldwide. The company’s products include RingCentral Message Video Phone, RingCentral Contact Center, RingCX, RingCentral Video, and RingCentral Professional Services, serving various industries.

Over the past three years, RNG’s revenue has grown at a CAGR of 24.2%. Also, the company’s total assets and levered free cash have increased at CAGRs of 122.6% and 41.1%, respectively, over the same period.

In terms of the trailing-12-month gross profit margin, RNG’s 70.24% is 41.4% higher than the 49.68% industry average. Likewise, its 24.68% trailing-12-month levered FCF margin is 137.3% higher than the 10.40% industry average. Furthermore, its 1.22x trailing-12-month asset turnover ratio is 96.9% higher than the 0.62x industry average.

For the second quarter that ended June 30, 2024, RNG’s total revenues increased 93.9% year-over-year to $592.91 million. Its non-GAAP income from operations rose 18.9% from the year-ago value to $124.19 million. The company’s non-GAAP net income of $86.20 million indicates growth of 7.7% from the prior year’s quarter.

In addition, the company’s non-GAAP net income per share came in at $0.91, up 9.7% from the prior year’s quarter.

Analysts expect RNG’s revenue and EPS for the third quarter (ending September 2024) to increase 7.9% and 18.2% year-over-year to $602.17 million and $0.92, respectively. Moreover, the company topped the consensus revenue and EPS estimates in all four trailing quarters.

RNG’s stock has surged 11.7% over the past nine months and 13.4% over the past year to close the last trading session at $33.96.

RNG’s POWR Ratings reflect bright prospects. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.

RNG has an A grade for Growth and Value and a B for Quality. It is ranked #6 out of 39 stocks in the B-rated Software - Business industry.

In addition to the POWR Ratings highlighted above, one can access RNG’s ratings for Momentum, Stability, and Sentiment here.

What To Do Next?

Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today’s volatile markets:

3 Stocks to DOUBLE This Year >

DOCU shares were trading at $56.67 per share on Friday afternoon, up $0.21 (+0.37%). Year-to-date, DOCU has declined -4.68%, versus a 17.36% rise in the benchmark S&P 500 index during the same period.

Palantir Technologies, Inc. stock is moving higher on Friday on continued strength following recent developments.

The stock spiked recently after the company reported S2 earnings and announced a new partnership with Microsoft last week. In terms of earnings, the company reported adjusted EPS of nine cents beating analysts estimate of eight cents and sales of $678.13 million beating analysts estimate of $652.10 million.

Palantir’s new partnership with Microsoft will bring enhanced data analytics and artificial intelligence services to the U.S. Defense and Intelligence Community. 

How To Buy Palantir Technologies Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Palantir Technologies 's case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Related Link: What’s Going On With Rocket Lab Stock Today?

PLTR Price Action: At the time of writing, Palantir shares are moving 4.18% higher at $32.53 per data from Benzinga Pro.

Image :Photo by Iljanaresvara Studio on Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

It has been about a month since the last earnings report for U.S. Bancorp . Shares have lost about 3.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is U.S. Bancorp due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

U.S. Bancorp's Q2 Earnings Beat on Lower Expenses

U.S. Bancorp’s second-quarter 2024 adjusted earnings per share (excluding the impact of notable items) of 98 cents beat the Zacks Consensus Estimate by 2%. However, the bottom line declined 12.5% from the prior-year quarter's level.

Results have benefited from higher deposits and lower expenses. However, a decline in net interest income (NII) was a major headwind.

Net income (GAAP basis) attributable to U.S. Bancorp was $1.60 billion, up 17.8% from the prior-year quarter's level.

Revenues & Expenses Fall

Total revenues in the reported quarter were $6.84 billion, down 4.4% year over year. The top line surpassed the Zacks Consensus Estimate by a whisker.

The tax-equivalent NII totaled $4.05 billion, down 8.9% from the year-ago quarter's level. The downside was primarily due to the impact of higher interest rates on deposit mix and pricing, partially offset by higher rates on earning assets and balance sheet optimization activities.

The net interest margin of 2.67% contracted 23 basis points year over year.

Non-interest income moved up 3.3% year over year to $2.82 billion. The uptick was driven by a higher fee revenue across most categories.

Non-interest expenses declined 7.8% year over year to $4.21 billion. The fall was due to prudent expense management, continued focus on operational efficiency and synergies from the acquisition of MUFG Union Bank , partially offset by higher marketing and business development expenses.

The efficiency ratio was 61%, lower than the year-ago quarter’s figure of 63.7%. A decline in the ratio indicates an improvement in profitability.

Average total loans declined 3.6% to $374.69 billion from the year-ago quarter. Average total deposits increased 3.3% from the previous year's quarter level to $513.90 billion.

Credit Quality: Mixed Bag

Total allowance for credit losses was $7.93 billion, up 3.1% year over year. As of Jun 30, 2024, U.S. Bancorp’s non-performing assets amounted to $1.85 billion, up 70.7% from the year-ago period's level.

The increase in nonperforming assets was chiefly due to higher commercial and commercial real estate nonperforming loans.

Net charge-offs were $538 million, down from $649 million in the year-ago quarter. The provision for credit losses in the reported quarter was $568 million, down 30.8% from the prior-year quarter's level.

Capital Ratios Improve

The Tier 1 capital ratio was 11.9% as of Jun 30, 2024, up from 10.6% in the prior-year quarter. The Common Equity Tier 1 capital ratio under the Basel III standardized approach was 10.3% as of Jun 30, 2024, up from 9.1% in the year-ago quarter.

The tangible common equity to tangible assets ratio was 5.4%, up from the prior-year quarter’s 4.8%.

Outlook

Second Quarter 2024

Management expects NII to be relatively stable compared with $4.05 billion in the second quarter of 2024.

Full Year 2024

Management expects NII to be in the range of $16.1 - $16.4 billion.

Total adjusted non-interest income is projected to grow by mid-single digit compared with $10.8 billion in 2023.

Total adjusted non-interest expense is expected to be $16.8 billion or lower.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

Currently, U.S. Bancorp has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, U.S. Bancorp has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

U.S. Bancorp is part of the Zacks Banks - Major Regional industry. Over the past month, JPMorgan Chase & Co. , a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended June 2024 more than a month ago.

JPMorgan Chase & Co. reported revenues of $50.2 billion in the last reported quarter, representing a year-over-year change of +21.5%. EPS of $4.40 for the same period compares with $4.37 a year ago.

JPMorgan Chase & Co. is expected to post earnings of $4.06 per share for the current quarter, representing a year-over-year change of -6.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.4%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for JPMorgan Chase & Co. Also, the stock has a VGM Score of F.

Zacks Investment Research

JPMorgan Chase & Co. (JPM) is currently at $212.73, up $1.18 or 0.56%

• Would be highest close since July 31, 2024, when it closed at $212.80
• Currently up nine consecutive days; up 9.15% over this period

--

• Longest winning streak since Dec. 19, 2023, when it rose for nine straight trading days
• Best nine day stretch since the nine days ending April 24, 2023, when it rose 9.5%
• Down 0.03% month-to-date
• Up 25.06% year-to-date
• Down 1.91% from its all-time closing high of $216.87 on July 17, 2024
• Up 42.8% from 52 weeks ago (Aug. 18, 2023), when it closed at $148.97
• Down 1.91% from its 52-week closing high of $216.87 on July 17, 2024
• Up 56.78% from its 52-week closing low of $135.69 on Oct. 27, 2023
• Traded as high as $213.70
• Up 1.02% at today's intraday high
• Fifth best performer in the DJIA today
• Contributed 7.75 points to the DJIA so far today

All data as of 10:10:17 AM ET

Source: Dow Jones Market Data, FactSet