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ePlus Inc (PLUS - Free Report) is a Zacks Rank #1 (Strong Buy) and sports an A for Value and for Growth. This is software name has held up of late and that piqued my interest in the name. Lately, investors have shunned the software space in favor of names that are more commodity based. Let’s explore more about this company in this Bull of The Day article.
Description
ePlus inc. is a leading provider of technology solutions. ePlus enables organizations to optimize their IT infrastructure and supply chain processes by delivering world-class IT products from top manufacturers, professional services, flexible lease financing, proprietary software, and patented business methods. With the highest certifications from top technology partners and expertise in key technologies from data center to security, cloud, and collaboration, ePlus transforms IT from a cost center to a business enabler.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PLUS, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 28%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PLUS, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
The full fiscal year 2023 has moved from $4.12 to $4.39.
Next fiscal year has also increased from $4.11 to $4.61.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for PLUS looks good with the forward earnings multiple coming in at 12x. Revenue growth of 28% in the most recent quarter keeps the Zacks Style Score for Growth as an A. I see the price to book multiple at 2.1x and that will keep the value investors interested in the stock. I see a 17 basis point increase margins and more of that will lead to a higher stock price.
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Bull Of The Day: ePLus (PLUS)
ePlus Inc (PLUS - Free Report) is a Zacks Rank #1 (Strong Buy) and sports an A for Value and for Growth. This is software name has held up of late and that piqued my interest in the name. Lately, investors have shunned the software space in favor of names that are more commodity based. Let’s explore more about this company in this Bull of The Day article.
Description
ePlus inc. is a leading provider of technology solutions. ePlus enables organizations to optimize their IT infrastructure and supply chain processes by delivering world-class IT products from top manufacturers, professional services, flexible lease financing, proprietary software, and patented business methods. With the highest certifications from top technology partners and expertise in key technologies from data center to security, cloud, and collaboration, ePlus transforms IT from a cost center to a business enabler.
Earnings History
When I look at a stock, the first thing I do is look to see if the company is beating the number. This tells me right away where the market’s expectations have been for the company and how management has communicated to the market. A stock that consistently beats has management communicating expectations to Wall Street that can be achieved. That is what you want to see.
For PLUS, I see four straight beats of the Zacks Consensus Estimate. That is great to see, but by itself that is not enough to make the company a Zacks Rank #1 (Strong Buy).
The average positive earnings surprise over the course of the last year works out to be 28%.
Earnings Estimates Revisions
The Zacks Rank tells us which stocks are seeing earnings estimates move higher. For PLUS, I see annual estimates moving higher.
Over the last 60 days, I see a few increases.
The full fiscal year 2023 has moved from $4.12 to $4.39.
Next fiscal year has also increased from $4.11 to $4.61.
Positive movement in earnings estimates like that is why this stock is a Zacks Rank #1 (Strong Buy).
Valuation
The valuation for PLUS looks good with the forward earnings multiple coming in at 12x. Revenue growth of 28% in the most recent quarter keeps the Zacks Style Score for Growth as an A. I see the price to book multiple at 2.1x and that will keep the value investors interested in the stock. I see a 17 basis point increase margins and more of that will lead to a higher stock price.