The stock market continues to experience extremely volatile trading. However, the three main benchmark indexes have recovered, somewhat, on investors’ optimism surrounding some strong fourth-quarter earnings reports of technology companies. According to UBS…
chief investment officer for the Americas, Solita Marcelli, “Tech results, in particular, have been encouraging, highlighted by healthy demand from both businesses and consumers.”
The technology industry thrived over the past two years, and for some high quality stocks the momentum should continue, given the increased adoption of cloud and service-based IT across almost every sector. Moreover, with hybrid work structures becoming the new norm, reliance on technology is rising. According to Statista, Tech budgets in the United States are expected to expand by 6.7% in 2022, with software spending expected to be especially strong compared to other tech categories.
Given the long term growth prospects of the tech industry, Wall Street analysts expect low-priced tech stocks Compass, Inc. (COMP – Get Rating), Porch Group, Inc. (PRCH – Get Rating), indie Semiconductor, Inc. (INDI – Get Rating), and Allot Ltd. (ALLT – Get Rating) to rally more than 100% this year.
COMP provides real estate brokerage services. The company operates as a cloud-based platform that provides an integrated software suite for customer relationship management, marketing, client service, operations, other functionality, and brokerage and adjacent services in the real estate industry.
COMP announced several acquisition and expansion plans over the past year. In September 2021, COMP announced its acquisition of CommonGround Abstract, LLC, a leading title company serving Pennsylvania and New Jersey. In the same month, the company announced plans to acquire two title and escrow businesses, the Dallas-Fort Worth-based title company, LegacyTexas Title, and Denver-based First Alliance Title. These acquisitions should expand its title and escrow services portfolio.
COMP’s revenue increased 46.7% year-over-year to $1.74 billion in the fiscal third quarter ended September 30. Its adjusted EBITDA grew 10.9% from the year-ago value to $12.20 million. In addition, its cash and cash equivalents came in at $791.40 million, indicating an improvement of 81.4% year-over-year for the nine months ended September 30.
Street expects the company’s revenue to increase 72.7% year-over-year to $6.43 billion in the fiscal period ending December 2021.
Of the six Wall Street analysts that have rated COMP, five rated it Buy, while one rated it Hold. The 12-month median price target of $18.00 indicates 124% potential upside. The price targets range from a low of $11.00 to a high of $24.00.
PRCH provides software and services under the ISN, HireAHelper, Kandela brands to home services companies, such as home inspectors, homebuyers and homeowners, insurance carriers, moving companies, security companies, and TV/internet providers, as well as offers moving concierge services.
In January 2022, Homeowners of America (HOA), a property and casualty insurance provider and a subsidiary of PRCH, announced its service launch in Montana, marking HOA’s 14th state of operation. This is in line with HOA’s national expansion plan and should increase PRCH’s presence in the insurance industry.
In December 2021, PRCH introduced its new Pay-At-Close module for home inspection companies to simultaneously make the payment processing experience smoother for homebuyers, agents, and inspectors. The program is available to…
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