Stocks were looking to add to yesterday’s gains this morning in early trading. All sectors closed green yesterday, with the S&P 500 stacking on more than 1.7% during its most productive session since March. A solid start to Q3 earnings season boosted sentiment along with better than expected employment numbers.
Earnings season rolls on today with more numbers from the financial sector. This morning before the bell, Truist Financial (TFC), PNC Financial (PNC), and Goldman Sachs (GS) reported better-than-expected numbers.
In our trade for today, we’ll discuss a ticker that’s hot on the lips of members of the analyst community. If you’re interested in profitable, growing companies like we are, this one is for you.
Luxembourg-based Globant S.A. (GLOB) is a technology services company that provides content management systems and e-commerce applications to clients in North America, Europe, Latin America, and internationally. The stock is the recipient of a string of upgrades and positive estimate revisions over the past few weeks that piqued our curiosity.
In recent weeks JPMorgan Chase, Piper Sandler, Citigroup, and Jefferies have all raised their price targets and/or ratings for GLOB stock. Last month, Goldman Sachs analyst Diego Aragao upgraded Globant from Neutral to Buy. The analyst believes Globant can sustain current relative valuation levels given the “superior-quality of its offerings.”
The company is already taking advantage of the growing global demand for digital solutions. Aragao is positive on the Latin American Technology sector, expecting the urgency of digitalization to continue driving improved sales growth and margin expansion for at least the next three years. Goldman Sachs raised the price target for GLOB from $235 to $395, implying a 26% upside.
When we took a deeper look at insider activity at Globant, we were intrigued and impressed to find that insiders have $267 million invested in the $13 billion company. This suggests that leadership will have shareholders’ interests in mind while making decisions.
The consensus forecasts that Globant will report EPS of $0.93 during its next quarterly earnings report, suggesting a positive year-over-year growth of 55% rate from the $0.60 reported in the same quarter last year. The company is slated to report Q3 numbers on Thursday, November 11th, and has beat estimates for the past four quarters.
Looking back at performance for the year, GLOB has consistently beat the market. Shares of Globant have increased 54% since the beginning of the year. In comparison, the S&P 500 has only moved about 20%. We think that the stock has more room to run if conditions remain favorable.
The consensus among the pros on Wall Street is to Buy GLOB stock. Of 13 analysts offering recommendations for the stock, 12 rate the stock a Buy, and 1 rates it a Hold. There are no Sell ratings for Globant stock. A median 12-month price target of $345 represents a 16% upside from the current price.
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