S Chart done on daily timeframe. SentinelOne’s stock has had a tough quarter as the company attempts to recover from last earnings. The stock lost more than 40% after the report, but it has since then climbed slowly. The earnings ahead are expected to test the strength of the move from the lows. Although revenue grew in the last seven quarters, the company has either declined, or stayed flat in the last 12 months. Its decline is justified since it was highly overvalued, but if we’re using the 10x model, it is now in an attractive range, especially if they upkeep the revenue growth trend. Net income and cash flow are in the negative so make sure to keep that...
WMT Walmart is one of the few companies that has outshined its competitors in the big box retail space as inflation drove consumers look for budgets, especially in the household grocery department. The company’s recent earnings proved its strength amongst its competition as they beat both on revenue and profit projections, but is this enough to justify their current valuation near all time highs? Walmart is currently trading at a price to earnings ratio of 30, which is right around the Discount Store industry average of 29. It holds the largest market cap followed by by Costco and Target. Revenue trends for the giant retailer has grown substantially thanks to online sales in the last five years, and it is...
AYX Chart done on hourly timeframe. Alteryx is a software company that has managed to capture a very small amount of the data analytics market using a subscription-based business model. The company’s revenue flourished in 2019 after the pandemic and continued growing rapidly in 2020-2021; however recent quarterly earnings reflect a dramatic slowdown of revenue growth, which could explain the stocks decline. Something to note right away is despite its revenue growth in 2019-2021, the stock’s highs of $185 were never justified. AYX has never generated enough revenue to make it a reasonable purchase at that level, so this multi-year correction is completely normal. Valuation since those highs has fallen to about 2B, which is a much healthier market cap....
PAYX Chart done on daily timeframe. Paychex is a company that provides payroll, human resource, and benefits outsourcing solutions to businesses of various sizes. Its revenue is primarily derived from subscription-based services for payroll processing, HR management, and related services. Fundamentally, the company has generally maintained healthy profit margins due to its subscription-based business model, which contributes to stable profitability. The company serves a wide range of clients, including small, medium, and large businesses across various industries. The diversity of its client base helps mitigate risks associated with economic fluctuations in specific sectors. Paychex’s market cap is less than half of its primary competitor, ADP. ADP’s market cap is currently at 103B and revenue annual revenue is 18B (TTM), while...
SE Chart done on hourly candles. Sea Limited is trading at a level not seen in over three years, which places it either in a great buying range, or in a very risky range depending on how you view their fundamentals. Sea Limited shares have fallen more than 30% since their most recent earnings, which is a trend we’ve seen in other companies within the online gaming industry. Companies like Roblox and Sea Limited both reported weak growth in the digital entertainment business, but SE has the advantage of other revenue streams. SE owns Shopee and Sea Money, both of which grew YoY. Fundamentally, SE is growing in a healthy direction, so this decline may be an opportunity, but some...
