Bull of the Day: NCR Corp. (NCR)
NCR Corporation NCR, a current Zacks Rank #1 (Strong Buy), is the world's leading enterprise provider of software, hardware, and services for banks, retailers, restaurants, and small businesses. You’ve likely utilized the company’s technology without realizing it, particularly at ATMs.
Analysts have taken their earnings expectations higher across the board over the last several months, reflecting positive sentiment.
Image Source: Zacks Investment Research
The company resides within the Zacks Computer – Integrated Systems industry, which is currently ranked in the top 31% of all industries thanks to positive earnings estimate revisions.
As many are aware, roughly half of a stock’s movement can be attributed to its group, helping to clarify the importance of targeting industries seeing bright outlooks.
Aside from the improved earnings outlook, let’s take a closer look at a few other traits of NCR.
Current Standing
NCR shares could attract growth-focused investors, further reflected by the Style Score of “B” for Growth. Estimates for its current fiscal year suggest 20% EPS growth in its current fiscal year (FY23) and an additional 9% of growth in FY24.
In addition, shares remain cheap on a relative basis given the company’s projected growth, with the current 8.3X forward earnings multiple (F1) sitting well beneath the 11.3X five-year median and its Zacks Industry average.
The stock carries a Style Score of “A” for Value.
Image Source: Zacks Investment Research
NCR has delivered some big beats as of late, exceeding the Zacks Consensus EPS estimate by an average of 11% across its last four quarters. Just in its latest release, the company penciled in a sizable 30% EPS beat and reported sales nearly 3% ahead of expectations.
The market cheered on the results, sending NCR shares on a fresh uptrend, as we can see illustrated by the green arrow circled below.
Image Source: Zacks Investment Research
NCR shares have enjoyed this recent momentum and reclaimed their 200-day moving average, a level at which shares previously struggled to break. This favorable price action is illustrated below.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
Additionally, the top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
NCR Corporation NCR would be an excellent stock for investors to keep on their watchlists, as displayed by its Zack Rank #1 (Strong Buy).
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NCR Corporation (NCR) : Free Stock Analysis Report
