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Strong Revenue Growth, Outstanding Execution!Morning*'s valuation implies 2024 EV/Sales multiple of 5.5x. Forecasted Revenue growth 24% annualized rate over next five years! TTM Rev Growth YoY was 43%; 206% above sector median! Rev FWD growth is 26% or 142% above sector median. Expected to become profitable on adjusted OpMargin basis next year and GAAP profitable in 2027 in line with current models as long as Okta continues to execute its growth strategy via investing in sales and research divisions. The purple area target is my own personal target within time frame expected based on probabilities.
NASDAQ:OKTALong
by Jrussell86
EURUSD - The Euro is holding wellThe EUR/USD pair is rising on Wednesday and is back above 1.1000, after erasing Tuesday’s losses. The pair fell from 1.1066 to 1.0963 on Tuesday, only to climb back to the 1.1060 area on Wednesday. The events ahead could add fuel to recent volatility. Overall, it continues to move sideways, within an uptrend, holding above key technical levels and supported by a stronger euro across the board. Expectations that the European Central Bank (ECB) will continue raising interest rates are supporting the euro. Even this week, as Eurozone bond yields drop sharply amid a deterioration in market sentiment, the euro is holding well. Incoming inflation and growth data from the Euro area will be watched closely. Also important will be growth figures from the US on Thursday. However, market participants have already decided what will happen next week: they see rate hikes from the Fed and the ECB. Renewed banking concerns after the results of First Republic Bank (NYSE:FRC) and a gloomy global growth outlook weighed on sentiment. European markets are falling on Wednesday, and Wall Street futures are mixed. The VIX is up for the second day in a row. The rally in global bonds continues. The German 10-year yield fell to 2.30%, the lowest in two weeks. The 10-year Treasury yield dropped to 3.39%, also at two-week lows. From a technical perspective, EUR/USD held above a key short-term uptrend line, currently at 1.0940 and also above the 20-day Simple Moving Average. Risks remain tilted to the upside. However, the pair must hold above 1.1000 and print fresh cycle highs soon, to avoid a deep correction. More gains will target the April monthly high of 1.1075. Above the next resistance is the psychological 1.1100, followed by 1.1120. On the flip side, a daily close below 1.0930 would weaken the outlook, while a break of 1.0900 could point to a double top, suggesting a more pronounced slide ahead.
Long
by GREENBACK_OFFICIAL
MEX - 10x-20xHi! Right now, MEX is considered by many people in the Elrond space as "garbage", but I personally consider it an unpolished diamond. At the time of posting, its market capitalization is nearly $ 23million. With the release of the card in Q3-Q4, there will be more and more transactions that will put the burn in function. At the time of posting, there are approximately $ 400,000 burned, which leads me to believe that it could lead to a market capitalization of at least $ 200 million dollars. Disclaimer: The information and opinions in this post are for educational purposes only and should not be considered as financial advice. Trading and investing in the financial markets involves risk and may not be suitable for all investors. Always do your own research and due diligence before making any investment decisions. The author of this post and TradingView are not responsible for any losses incurred as a result of using this information.
Long
by Cristii11
#Bitcoin bear market Bottom 2022if we go back by time between bottoms and top and halving this is what we got if you know what i mean!! µ we are already in the final first half of the bear market, and i think now we are in the seconde (last half) the same time of the last bear mrket the bitcoin Dominance was at the same levels i expect big pumpto 60/70% on the dominance and big dump on the Bitcoin price ... im already in accumulation phase right now already invest 10% of my wallet, lets get the party start.
INDEX:BTCUSDLong
by Yassine_Houd
Gold between fires! This week's close will be decisive for gold and be prepared for volatility. The forecast for gold that was posted on my channel continues to be implemented. Let me remind you that gold looks good in the short term, BUT In medium and long term, gold will grow. This is because gold is highly correlated with 10-year US bonds and the dollar index. And in these assets, the main panic has already passed (or will end in the coming months). Therefore, if you want to short gold, then do it only with a stop! I predict the maximum fall limit for gold at $1700-1800. I will be buying gold big at these levels Write in the comments what other asset to analyze according to technical analysis
GLong
by Dorado_Crypto
Technical Pull back Buy the DIP!The slight gross margin decrease of 4.8% was enough to resume the HS pattern on the chart executing a normal pullback- relative to the "neckline" where HS patterns are confirmed with some other criterion. Despite the quarterly margin contraction, expected cost reductions should start to materialize in 2024. Everything on the income statement is trending in the right direction. If TSLA really does hit the pattern target of HKEX:80 , a 50% further decrease from current SP, which is based on a formula of probabilities for this specific pattern, then it will be 62% undervalued. At SP of 80, subtracting the 5.14 of Cash per share, and using current TTM, the PE would be 21! Even with a PE of 49 GAAP TTM , the difference to sector is 222% and FWD PE of 50.5. However several different metrics between growth and profitability could easily justify it where its at now. EBITDA growth YoY 3,607% diff to sector,/ FWD 690% diff to sector; Rev Growth Fwd 393%. EV/EBIDTA FWD 180 % diff to sector. Net Income Margin TTM 247% diff to sector. ROC TTM 193 and ROA TTM 289% differences to sector... Easily justified.. Rarely are you able to purchase growth companies at a PE of 21... Buy the DIP!
NASDAQ:TSLALong
by Jrussell86
Why I'm Not Chasing NVIDIA Up Here, But Still Like ItOne thing is crystal clear to me, NVIDIA has bounced incredibly well off its 2022 lows, to the tune of nearly 150%! What a trade... I missed it. In addition, check out the double bottom that I marked on the chart. In hindsight, it looks so obvious. It's important to use these long-term charts to learn and get better. Had you zoomed out, you may have seen this low from a mile away. Next time... But now it appears that NVIDIA is being talked about everywhere as it marches forward. This post is designed to explain why I think NVIDIA has too much resistance ahead - don't chase! But also why the market sees its potential. Let's get to it: Nevertheless, NVIDIA, thanks to the speed of its recent bounce, is now the 7th largest company on Earth. Will it pass Buffett and Berkshire Hathaway next? The list looks like this: Apple - $2.6 trillion Microsoft - $2.1 trillion Saudi Aramco - $2.1 trillion Alphabet (Google) - $1.3 trillion Amazon - $1.1 trillion Berkshire Hathaway - $715.4 billion NVIDIA - $685.5 billion Tesla - $576.4 billion Meta (Facebook) - $555.7 billion Johnson & Johnson - $506.3 billion As AI increases, machine learning, and their eventual integration into machines, NVIDIA remains poised to lead the way. And that's where I personally think the long-term story remains in tact. I am not looking at NVIDIA for a trade right now - the risk/reward makes little sense. But, long-term, if NVIDIA suffers another correction, I'll be ready. Why? The other day I joked that while ChatGPT and other AI online tools are cool, we have yet to see this integrated with anything physical. But that is not far away - a fridge that learns your habits about what you eat so it can place orders automatically or set your fridge to the perfect temperature. Or a lawn mower that learns to master your lawn after each attempted cut, turning your lawn into a flawless putting green that your neighbors marvel at. But this also where things can get a little crazy… like if the lawn mower starts to think you’re the putting green! 😝 I hope you enjoyed this free flowing chat and a few notes that I added to the chart. Let me know what you think
NASDAQ:NVDA
by scheplick
13
Disruptive Innovation: Lessons from the Success of Teslamassive market potentials x massive competitive advantages = massive value creation Tesla, the electric vehicle manufacturer, has been the darling of the stock market for some time now. Its massive market potential and competitive advantage have created massive value for its shareholders, and it seems like the sky's the limit for this innovative company. Tesla's market potential is undoubtedly massive. The world is waking up to the reality of climate change, and people are looking for ways to reduce their carbon footprint. Electric vehicles are an obvious solution to this problem, and Tesla is at the forefront of this movement. The demand for electric vehicles is expected to grow exponentially in the coming years, and Tesla is well-positioned to take advantage of this trend. But what really sets Tesla apart from its competitors is its massive competitive advantage. The company's vertically integrated business model allows it to control all aspects of the production process, from battery manufacturing to vehicle assembly. This gives Tesla a significant cost advantage over traditional automakers, who often rely on third-party suppliers. In addition, Tesla's focus on innovation has allowed it to develop cutting-edge battery technology that is ahead of the curve. All of these factors have contributed to the creation of massive value for Tesla's shareholders. The company's market capitalization has grown exponentially in recent years, and it is now one of the most valuable companies in the world. However, this success has not come without challenges. Tesla faces increasing competition from other electric vehicle manufacturers, and it will need to continue innovating to maintain its edge. Moreover, Tesla's success has also attracted increased scrutiny from regulators and investors. The company's recent decision to invest in Bitcoin raised eyebrows, and some investors have questioned whether Tesla's valuation is justified. Despite these challenges, there is no denying that Tesla is a revolutionary company that has the potential to change the world. Its massive market potential and competitive advantage have enabled it to create massive value for its shareholders, and it is well-positioned to continue disrupting the automotive industry in the coming years. However, it is important to note that Tesla's success has also created a cult-like following among some of its fans. This has led to a polarization of opinions around the company, with some seeing it as a beacon of innovation and others seeing it as overvalued and overhyped. Regardless of one's opinion on Tesla, it is clear that the company has been a major disruptor in the automotive industry. Its focus on sustainability and innovation has inspired other companies to follow in its footsteps, and it has helped to accelerate the transition to electric vehicles. In addition, Tesla's success has also had a ripple effect on the broader economy, creating jobs and driving investment in related industries. Looking to the future, Tesla's success will likely continue to depend on its ability to innovate and stay ahead of the competition. The company is already expanding into new markets, such as energy storage and solar, and it is likely that we will see continued growth in these areas. In conclusion, Tesla's massive market potential and competitive advantage have created massive value for its shareholders, and the company has become a symbol of innovation and disruption in the automotive industry. While challenges and criticisms remain, it is clear that Tesla has had a significant impact on the world and is poised to continue doing so in the future.
NASDAQ:TSLALong
by Julien_Eche
Breakout on Battery Production NewsPositive divergence can be seen on a yearly basis with MACD leveling out crossing into positive territory. SP appears to have formed a double bottom and is currently breaking out from a narrower down trend. Currently, the SP is ≈33% below the average analyst target and ≈45% below the top range of down channel primary trend. The SP collapsed last year as a result of the public offering in December, cash burn rate and a gross loss for the most recent quarter. Revenue YoY has grown 142% and revenue growth FWD is 118%. With the high growth rate and being profitable on a yearly basis, a PE of 22 is cheap.
LLong
by Jrussell86
Is it Worth Buying MSFT Today ?Microsoft Corporation, the American multinational technology company, has been one of the most prominent companies in the tech industry. Founded in 1975, the company’s market capitalization was $2.15 trillion, as of April 18, 2023. The company has had a strong revenue growth, reaching $198.27 billion in 2022, with projections of $262.57 billion in 2025. This growth has been fueled by several products, including Windows, Office Suite, Xbox, and LinkedIn, among others. The company’s financial statements show strong performance, particularly in revenue, with an impressive compound annual growth rate of 13.3% between 2017 and 2022. The company has also maintained a good profitability level, with an average EBIT margin of 41.4% between 2017 and 2022. However, the company’s net income margin has been fluctuating between 2017 and 2022, reaching its highest at 36.5% in 2021 and its lowest at 31.0% in 2018. The company's valuation ratios have been at reasonable levels over the years. The price-to-earnings (P/E) ratio has ranged from 26.6x in 2022 to 35.3x in 2020. The P/E ratio is expected to reach 23.0x in 2025. The price-to-book (P/B) ratio has ranged from 11.5x in 2022 to 14.3x in 2021, and it is expected to reach 6.54x in 2025. Microsoft Corporation's enterprise value (EV) to revenue ratio has also remained reasonable, ranging from 9.4x in 2022 to 11.7x in 2021, while its EV to EBITDA ratio ranged from 19.1x in 2022 to 24.1x in 2021. The company's enterprise value over free cash flow (EV/FCF) ratio was at 28.6x in 2022, and it is expected to reach 22.6x in 2025. The company has a strong balance sheet, with net cash position ranging from $54.98 billion in 2022 to $135.17 billion in 2025. The company's free cash flow (FCF) margin has been reasonable, ranging from 32.9% in 2022 to 34.0% in 2025. Furthermore, Microsoft has maintained high return on equity (ROE) ratios of over 30% since 2018. In light of the above financial performance, it is not surprising that analysts have a positive outlook for the company's future. They estimate that the company's net income will increase from $92.49 billion in 2025 to around $ billion in 2027, while the earnings per share (EPS) will reach $14.4 in 2027, according to the consensus of Wall Street. Moreover, the company's management has a history of generating high shareholder returns, primarily through share buybacks and dividends. The company’s dividend yield has ranged from 0.83% in 2021 to 1.13% in 2025, and it is expected to remain stable in the future. Overall, Microsoft is a highly profitable and financially stable company, with strong growth potential in its cloud computing and artificial intelligence segments. While its current P/E ratio of 26.6x may seem relatively high compared to historical averages, it is still within reasonable range for a tech company with its growth prospects. The company's strong net cash position and negative leverage ratio further demonstrate its financial stability. In conclusion, I believe that Microsoft is a strong investment opportunity for long-term investors. While short-term volatility and market fluctuations are always a possibility, the company's financial strength and growth potential make it an attractive option. With its continued investments in cloud computing and artificial intelligence, Microsoft is well-positioned for success in the rapidly evolving technology landscape.
NASDAQ:AAPLLong
by Julien_Eche
Is It the Right Time to Buy Apple StockAs an avid follower of the tech industry and an investor myself, I've been keeping a close eye on Apple Inc. This technology giant, known for its innovative products and services, has consistently piqued the interest of investors. As of April 2023, many people are wondering if now is the right time to buy Apple stock. In this article, I'll dive into Apple's historical performance, recent financial ratios, market outlook, risks, and challenges to provide some insight into whether it's the right time to invest in Apple shares. 1. Historical Performance of Apple Stock a. Long-term growth I've observed that since the early 2000s, Apple's stock has experienced exponential growth, primarily driven by the company's success in launching groundbreaking products like the iPhone, iPad, and Apple Watch. Apple's stock reached a record value of over 500 USD in 2020, showcasing the company's ability to maintain its dominant market position. b. Performance between 2021 and April 2023 In the period between 2021 and April 2023, Apple's stock continued its upward trajectory, albeit with occasional dips due to market fluctuations and global events. Despite these temporary setbacks, the overall trend remained positive, highlighting the company's resilience and adaptability. 2. Key Financial Ratios (as of April 2023) a. Price-to-earnings (P/E) ratio As of April 2023, Apple's P/E ratio stood at around 35. A high P/E ratio is indicative of investor confidence in the company's ability to generate earnings in the future. I've seen the P/E ratio fluctuate in the past, but the current figure suggests that investors remain optimistic about Apple's prospects. b. Debt-to-EBITDA ratio Apple's debt-to-EBITDA ratio has been maintained below 1, a sign of prudent debt management. This indicates that Apple has ample earnings to cover its debt obligations, which is a positive signal for investors like myself. c. Price-to-sales (P/S) ratio At around 9, Apple's P/S ratio implies that investors are willing to pay a premium for the company's sales. A high P/S ratio is often associated with high-growth companies, suggesting that investors anticipate continued growth in Apple's sales. d. Price-to-book (P/B) ratio Apple's P/B ratio, at approximately 32, is higher than the industry average. This ratio reflects the value investors place on the company's assets, indicating that the market perceives Apple's assets to be of high quality. e. Price-to-free-cash-flow (P/FCF) ratio With a consistent P/FCF ratio of around 33, investors are paying a premium for Apple's ability to generate free cash flow. This is an important metric for investors like me, as it indicates the company's financial flexibility and capacity to fund future growth initiatives. 3. Recent Developments and Market Outlook a. Apple's financial performance in 2022 and early 2023 Apple has exhibited solid revenue and earnings growth in 2022 and early 2023, driven by the success of new product launches and innovations. This strong performance demonstrates the company's ability to maintain its competitive edge in the ever-evolving tech industry. b. Projected growth in the tech industry for 2023 and beyond The tech industry is expected to continue its rapid growth, spurred by advancements in 5G technology, artificial intelligence, and machine learning. Apple's product pipeline aligns with these industry trends, placing the company in a favorable position to capitalize on emerging opportunities. c. Apple's innovation and product pipeline for 2023 and beyond Rumors of Apple's augmented reality (AR) products and the potential expansion of its ecosystem through new services suggest that the company has a robust innovation strategy for 2023 and beyond. As a result, Apple is well-positioned to maintain its status as an industry leader and continue to grow its market share. d. Comparison with other tech giants When comparing Apple's market performance and valuation with other tech giants, it becomes evident that the company remains a strong contender in the technology sector. Apple's competitive landscape and market share continue to be favorable, further solidifying its status as a dominant player in the industry. 4. Risks and Challenges a. Regulatory and geopolitical concerns Apple faces ongoing regulatory challenges, such as antitrust investigations, which could impact its business operations. Additionally, trade disputes and potential supply chain disruptions may pose risks to the company's growth prospects. b. Market volatility and economic factors in 2023 Interest rate changes and global economic conditions could create market volatility that affects Apple's stock performance in 2023. As an investor, I consider these factors when assessing the potential risks and rewards of investing in Apple shares. c. Competition and market saturation The tech industry is known for its fierce competition and rapidly changing landscape. Apple must continue to innovate and adapt to maintain its market share and stay ahead of emerging competitors. Market saturation in certain product categories may also pose challenges to the company's growth potential. Conclusion Taking into account the financial ratios, recent developments, and market outlook, Apple appears to be a strong investment option as of April 2023. However, investors should weigh the pros and cons based on the most recent data and consider their personal investment goals and risk tolerance before making a decision. As for me, I remain optimistic about Apple's future, but I also recognize the importance of staying informed and making well-informed decisions.
NASDAQ:AAPLLong
by Julien_Eche
Can crude oil continue to rise?On the news side, the IEA monthly report on Friday was released. The International Energy Agency said in its monthly report on Friday that world oil demand will grow to 2 million barrels per day in 2023; on the supply side, OPEC+ production cuts may lead to supply shortages in the second half of the year, which also restricts the decline in oil prices to a certain extent.In addition, the current entry of daylight saving time, more travel demand itself has reached the peak season of oil, and oil prices will be boosted by demand from many aspects and will usher in a new wave of increases. Judging from the recent trend of crude oil, crude oil stepped back to 81.6 twice on Friday and was steadily caught by the bulls, indicating that the support below is strong and the rise will continue, so for the short term, continue to maintain the bullish thinking.Moreover, under the current pressure on oil prices, the strength of the pullback is limited, and oil prices have been fluctuating below 83.5 for the past five months. Once the resistance in this area is broken, it is expected to accelerate the rise and enter a new trading range. I will share specific transactions and operations in real time on my channel based on intraday details.In order to facilitate everyone to continue to follow up on my analysis and sharing, you can like and follow me; in addition, I will share the daily real-time strategy in the channel. If you can't follow up in real time, you may make operational errors.You can use the following methods to enter my channel for free to follow the latest news and follow up on market trends in real time.
TVC:USOILLong
by Short-term-king
❗ Bitcoin struggles to hold onto $30,000, nears critical supportIs the current consolidation in Bitcoin's ascent only a pause on the way to higher levels? That is what Cathie Wood thinks. The influential investor has always been bullish. On the other hand, renowned hedge fund manager ay Dalio is skeptical. On the one hand, regulation is weighing on digital assets, but hopes for the end of Fed hiking is a positive development. The 4h-chart shows a loss of upside momentum, but BTC/USD's hold of the 4h-50 SMA means bulls are holding up. Support is at HKEX:29 ,706, followed by HKEX:29 ,230 and HKEX:28 ,819. Resistance is at HKEX:30 ,580, followed by HKEX:31 ,043 and HKEX:31 ,734.
Long
by Shahinjavidi
2
Why Investing in Tesla Might be a Smart MoveIn the rapidly evolving world of electric vehicles (EVs), Tesla has emerged as a clear industry leader, spearheading groundbreaking innovations and garnering a reputation for pushing boundaries. With the release of the Tesla Master Plan Part 3, it's evident that the company continues to forge ahead, making a compelling case for investment. In this article, we will delve into the key reasons why investing in Tesla is a strategic move for forward-thinking investors. 1. Ambitious Vision: The Tesla Master Plan Part 3 showcases the company's ambitious vision to revolutionize transportation and energy sectors. From electric cars and trucks to energy storage solutions and solar energy, Tesla's mission to accelerate the world's transition to sustainable energy is driven by a commitment to innovation and environmental responsibility. 2. Market Leadership: Tesla's dominance in the EV market is undeniable. As of 2021, the company held a staggering 79% market share of the US EV market. With a strong brand presence, Tesla has become synonymous with electric vehicles, leaving competitors trailing in its wake. 3. Vertical Integration: Tesla's vertically integrated business model enables the company to maintain control over every aspect of production, from battery manufacturing to vehicle assembly. This level of control allows Tesla to reduce costs, improve efficiencies, and rapidly scale production to meet growing demand. 4. Technological Advancements: Tesla is a pioneer in battery technology, charging infrastructure, and autonomous driving systems. As the company continues to invest in research and development, these technologies are expected to become more efficient, further cementing Tesla's status as an industry leader. 5. Global Expansion: Tesla's expansion into international markets, such as China and Europe, presents significant growth opportunities. As the demand for electric vehicles grows globally, Tesla is well-positioned to capitalize on this trend by increasing production capacity and expanding its global footprint. 6. Energy Solutions: Tesla is not merely an automaker but also an energy company. With products like the Powerwall, Powerpack, and Solar Roof, Tesla is poised to disrupt the energy market by providing consumers and businesses with sustainable energy solutions. Tesla's ambitious vision, market leadership, vertical integration, and technological advancements make it a compelling investment opportunity for those looking to ride the wave of the electric vehicle revolution. As the company continues to expand globally and disrupt the energy sector, Tesla's future looks bright, offering investors the chance to be a part of a world-changing movement. So, buckle up and get ready for the electrifying ride that is Tesla.
NASDAQ:TSLALong
by Julien_Eche
$ID Rally - #SPACEID Could Surpass $1 USD SoonDisclaimer: I do have a BAG of ID My opinion: I'm thinking on or around Sunday evening we could see a 1 USD ID price... reasons why; Strategy: Accumulate & Chill.... how long am i holding for? I have no intention of selling b/c of the DAO they're forming. So these tokens do have a "governance" role. And in Q4 they can be staked for discounts in the marketplace. Currently the APR's on Binance are generous. Pancakeswap's APR was generous imo. So there's strong incentive for a rapid growth in marketcap. Fundamentals for your consideration: i) Binance has allowed leveraged trading which has seen significant volume pump into $ID. Do note when people state that it seems "manipulated". A billion in volume is par the course, during the TGE 2.8BN in BNB was pledged by eager hodlers. So understand that any point this marketcap could swell beyond $3BN at the blink of an eye. ii) Current market cap and price point is appealing, because unlike the ENS drop... user's are seeing the opportunity to hold something with growth in mind. At present price lvl's user's can look to the roadmap for insights on why token price is likely to surge in a Bull Market of its own. DYOR, NFA... but on the horizon there's a NFT gated merch store, Universal TLD's (Domains). iii) Significant Milestones Reached - - Domains Registered: 701,646 SID | Holders: 495,507 addresses - ID Holders: 60,247 addresses - BSC Scan & other integrations make the project a juggernaut in web3 identity - .ARB & .ETH support in the marketplace - The domain market place does significant volume in trading daily - In pure sales volume, they're #2 & they did that in 6 months Something not commonly discussed is that the team actually achieved a lot of their roadmap rather early, hence why more has been added to their roadmap. The project has a solid team of developers buidling. There incubated and backed by Binance Labs. There second seed round raised $10M USD (Polychain Capital + dao5). Not often discussed is the sheer size of opportunity to grow. Remember Binance has 26 million website visitors.... and Binance is invested in twitter... and twitter just announced a partnership with eToro to provide crypto & stock prices on the platform. #SPACEID in theory now has access to 450M (2022) plus twitter users .... Again DYOR + NFA... this also doesn't factor in the mega bullrun to come with the Litecoin & BTC halving's ahead. When in doubt zoom out. I'm the least bit concerned by sideways conditions.
Long
by BIG-BLACK-CRYPTO
Nagarro SE (NA9): Small Cap Multi-Bagger in Germany.Nagarro SE (NA9) is a global software engineering and digital transformation company. It provides services such as software development, cloud computing, data analytics, and user experience design to clients across various industries including retail, healthcare, finance, and manufacturing. In terms of Nagarro SE's competitive advantages , some of the key factors that set the company apart from its competitors include: Technical Expertise: Nagarro SE has a highly skilled and experienced team of software engineers, data scientists, and UX/UI designers who are proficient in cutting-edge technologies and frameworks. This technical expertise enables the company to deliver high-quality software solutions that are customized to meet the unique needs of its clients. Agile Delivery: Nagarro SE follows an agile methodology for software development and delivery, which allows the company to quickly adapt to changing client requirements and market conditions. This approach enables the company to deliver projects faster and with a higher degree of flexibility and scalability. Global Delivery Model: Nagarro SE has a global delivery model, which allows the company to tap into a diverse talent pool across different geographies. This model also enables the company to provide 24/7 support to its clients and reduce development costs by leveraging the cost arbitrage between different regions. Client-Centric Approach: Nagarro SE puts a strong emphasis on understanding its clients' businesses and their unique challenges. This client-centric approach enables the company to provide customized solutions that address specific pain points and drive business outcomes for its clients. Overall, Nagarro SE's technical expertise, agile delivery, global delivery model, and client-centric approach are key competitive advantages that differentiate the company from its competitors in the software engineering and digital transformation space. As with any company, Nagarro faces various risks that could impact its business and financial performance. Some of the key risks that the company faces include: Economic and Market Risks: Nagarro SE's business is dependent on the overall health of the global economy and the demand for software engineering and digital transformation services. A slowdown in economic activity or a downturn in the global market could reduce demand for the company's services and negatively impact its financial performance. Competition: Nagarro SE operates in a highly competitive industry, and faces competition from both established players and new entrants. If the company is unable to compete effectively in terms of price, quality, and innovation, it could lose market share and revenue. Dependence on Key Clients : Nagarro SE's revenue is concentrated among a few key clients, which increases the risk of revenue volatility if these clients reduce their spending on the company's services, or if the company is unable to secure new clients to replace lost business. Talent Retention: Nagarro SE's success depends on its ability to attract, retain, and develop top talent in a highly competitive labor market. If the company is unable to attract and retain top talent, it may not be able to deliver high-quality services and meet its clients' needs. Technological Risks: Nagarro SE operates in a rapidly evolving technology landscape, which requires the company to invest continually in research and development to stay ahead of the curve. If the company is unable to adapt to new technologies or fails to innovate, it could lose market share to competitors that offer more advanced solutions. Return On Capital Employed (ROCE) Nagarro has a ROCE of 20%. In absolute terms that's a great return and it's even better than the IT industry average of 15%. To sum it up, Nagarro has proven it can reinvest in the business and generate higher returns on that capital employed, which is terrific. Given the stock has declined 55% from its highs, this could be a good investment if the valuation and other metrics are also appealing. With that in mind, I believe that the promising trends warrant this stock for further investigation.
SWB:NA9Long
by GenadiYankov