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Bear of the Day: TTEC Holdings (TTEC)

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With the market staging a big comeback in 2023 so far, many companies have seen their earnings outlook shift positively.

However, the outlook hasn’t been as bright for all, including TTEC Holdings. (TTEC - Free Report) . The company has seen its bottom line outlook turn sour over the last several months, pushing it down into an unfavorable Zacks Rank #5 (Strong Sell).

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Image Source: Zacks Investment Research

TTEC Holdings (formerly known as TeleTech) is a global customer experience (CX) technology and services company focused on the design, implementation, and delivery of exceptional customer experiences. Let’s take a closer look at how the company currently stacks up.

Share Performance

TTEC shares have faced notable selling pressure year-to-date, down roughly 25% and widely underperforming relative to the general market.

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Image Source: Zacks Investment Research

And over the last year, the picture primarily remains the same; TTEC shares have struggled to find lasting momentum, down more than 50% and again underperforming relative to the S&P 500.

Zacks Investment Research
Image Source: Zacks Investment Research

Valuation

Shares aren’t expensive on a relative basis, with the company’s 14.4X forward earnings multiple sitting well below the 19.3X five-year median and the Zacks Business Services sector average.

Zacks Investment Research
Image Source: Zacks Investment Research

In addition, TTEC’s forward price-to-sales ratio of 0.6X resides on the lower end of the spectrum, again well below the 1.2X five-year median.

Zacks Investment Research
Image Source: Zacks Investment Research

TTEC carries a Style Score of “B” for Value.

Quarterly Performance

TTEC posted better-than-expected results in its latest release, exceeding the Zacks Consensus EPS Estimate by more than 20% and delivering a positive 4.7% revenue surprise.

However, the market had a poor reaction post-earnings, sending shares on a downward trajectory. This is illustrated in the chart below.

Zacks Investment Research
Image Source: Zacks Investment Research

Bottom Line

Negative earnings estimate revisions from analysts paint a challenging picture for the company’s shares in the near term.

TTEC Holdings (TTEC - Free Report) is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook over the last several months.

For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy) – these stocks sport a notably stronger earnings outlook paired with the potential to deliver explosive gains in the near term.


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