The Genpact Limited (G) shares are trading at higher $37.74 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $41.22.
To add more color to this target, the company’s high over the last year is $45.20 and the low is $19.41. Over the last 52 weeks, G is down -16.50% while the S&P 500 is down -0.33%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, G reported a profit of $318.42 million. Genpact Limited also saw revenues increase to $923.19 million. In addition, G has free cash flow of -$39.6 million as of 03-2020. The company’s EBITDA came in at $150.45 million which compares well with its peers.
G booked profit margins of 9.10%, its Return on Equity (ROE) is 20.40%, and its Return on Assets is 7.80%. All told, it is clear that, G needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. G has a short ratio of 3.70 and outstanding shares of 189.45M.
G has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.64 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 1.69. Genpact Limited G also noted assets of $4.4 billion at the end of the last quarter. Investors should also keep an eye on sector updates as G has historically followed its peers on positive news.
All told, Genpact Limited G has strung together solid data and demonstrated underlying fundamentals. At its current valuation, G represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Genpact Limited G is now commanding a market cap of 7.08B and a float of 176.11M. G is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of G stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in G, either long or short, and we have not been compensated for this article.