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Here's Why DecisionPoint (DPSI) Seems a Smart Investment Bet
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DecisionPoint (DPSI - Free Report) is a stock that investors may consider adding to their portfolio to make some gains from its upside potential amid the ongoing volatility and weakness in global macroeconomic conditions.
Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
The company has an impressive earnings surprise history. DPSI outpaced the Zacks Consensus Estimate in three out of the trailing four quarters, delivering an average earnings surprise of 151%.
A Look at Estimates
The stock has gained 25% in the past year against the sub-industry’s decline of 23.4%. It is still trading 21% below its 52-week high of $12.98 on May 18, making it relatively affordable for investors.
The Zacks Consensus Estimate for 2022 earnings of 36 cents per share suggests growth of approximately 500% from the year-ago period’s levels. It has remained unchanged in the past 30 days.
Image Source: Zacks Investment Research
For 2023, the Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating a year-over-year increase of 19.4%.
For 2022 and 2023, the company’s revenue estimates are pegged at $90.5 million and $96.2 million, suggesting year-over-year growth of 37.3% and 6.2%, respectively.
Factors Driving Growth
DecisionPoint provides enterprise mobility and radio frequency identification technologies. The top-line performance is being driven by broad-based strength across several verticals amid global supply-chain disruptions. Also, the company’s strong relationships with its OEMs and distribution partners are tailwinds.
Synergies from acquisitions are likely to drive DecisionPoint’s performance. The company concluded two buyouts — Advanced Mobile Group and Boston Technologies — earlier in 2022. These acquisitions boost the company’s position in the lucrative transportation and direct-store delivery verticals.
Also, DPSI completed the rebranding of ExtenData Solutions into DecisionPoint Systems in October 2022. The company was acquired by DecisionPoint Systems in December 2020. The acquisition has helped DecisionPoint to improve its regional presence across the Rocky Mountain and Southwest regions of the United States and expand its professional services team. ExtenData’s MobileConductor delivery management platform has also opened up a new SaaS-based subscription revenue stream for DecisionPoint.
Driven by robust demand trends, the company has raised its guidance for 2022. For 2022, the company expects revenues to be between $90 million and $93 million compared with the earlier guidance of $87 million and $90 million, suggesting growth of 36-41% year over year. Adjusted EBITDA is projected to be between $6.5 million and $7 million compared with the earlier guidance of $4.6 million and $5 million.
Other Stocks to Consider
Investors interested in the broader technology space may also consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Arista and Jabil sport a Zacks Rank #1 (Strong Buy), Pure Storage carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 9.1% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 7.5% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG have declined 3.9% in the past year.
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Here's Why DecisionPoint (DPSI) Seems a Smart Investment Bet
DecisionPoint (DPSI - Free Report) is a stock that investors may consider adding to their portfolio to make some gains from its upside potential amid the ongoing volatility and weakness in global macroeconomic conditions.
DecisionPoint has the favorable combination of a Growth Score of A and sports a Zacks Rank #1 (Strong Buy), currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 and a Growth Score of A or B offer solid investment opportunities.
DecisionPoint Systems Inc. Price and Consensus
DecisionPoint Systems Inc. price-consensus-chart | DecisionPoint Systems Inc. Quote
The company has an impressive earnings surprise history. DPSI outpaced the Zacks Consensus Estimate in three out of the trailing four quarters, delivering an average earnings surprise of 151%.
A Look at Estimates
The stock has gained 25% in the past year against the sub-industry’s decline of 23.4%. It is still trading 21% below its 52-week high of $12.98 on May 18, making it relatively affordable for investors.
The Zacks Consensus Estimate for 2022 earnings of 36 cents per share suggests growth of approximately 500% from the year-ago period’s levels. It has remained unchanged in the past 30 days.
Image Source: Zacks Investment Research
For 2023, the Zacks Consensus Estimate for earnings is pegged at 43 cents per share, indicating a year-over-year increase of 19.4%.
For 2022 and 2023, the company’s revenue estimates are pegged at $90.5 million and $96.2 million, suggesting year-over-year growth of 37.3% and 6.2%, respectively.
Factors Driving Growth
DecisionPoint provides enterprise mobility and radio frequency identification technologies. The top-line performance is being driven by broad-based strength across several verticals amid global supply-chain disruptions. Also, the company’s strong relationships with its OEMs and distribution partners are tailwinds.
Synergies from acquisitions are likely to drive DecisionPoint’s performance. The company concluded two buyouts — Advanced Mobile Group and Boston Technologies — earlier in 2022. These acquisitions boost the company’s position in the lucrative transportation and direct-store delivery verticals.
Also, DPSI completed the rebranding of ExtenData Solutions into DecisionPoint Systems in October 2022. The company was acquired by DecisionPoint Systems in December 2020. The acquisition has helped DecisionPoint to improve its regional presence across the Rocky Mountain and Southwest regions of the United States and expand its professional services team. ExtenData’s MobileConductor delivery management platform has also opened up a new SaaS-based subscription revenue stream for DecisionPoint.
Driven by robust demand trends, the company has raised its guidance for 2022. For 2022, the company expects revenues to be between $90 million and $93 million compared with the earlier guidance of $87 million and $90 million, suggesting growth of 36-41% year over year. Adjusted EBITDA is projected to be between $6.5 million and $7 million compared with the earlier guidance of $4.6 million and $5 million.
Other Stocks to Consider
Investors interested in the broader technology space may also consider stocks like Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Pure Storage (PSTG - Free Report) . While Arista and Jabil sport a Zacks Rank #1 (Strong Buy), Pure Storage carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Arista Networks’ 2022 earnings is pegged at $4.37 per share, up 0.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have declined 9.1% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.31 per share, rising 1.6% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 7.5% in the past year.
The Zacks Consensus Estimate for Pure Storage’s fiscal 2023 earnings is pegged at $1.28 per share, up 8.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 21.3%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 156%. Shares of PSTG have declined 3.9% in the past year.