Last Updated: 18 Sep 2024
Executive Summary
Newtek Business Services Corp (NEWT), a technology company, is currently trading at $11.61. Its strong fundamentals, including a low P/E ratio of 6.83, a solid dividend yield of 0.0676%, and a robust profit margin of 0.141, suggest undervaluation. The company's recent financial performance has been positive, with quarterly earnings and revenue growth outpacing the industry. While the technical analysis indicates a neutral trend, the analyst price target of $13 suggests potential upside.
Company Overview
Newtek Business Services Corp provides technology solutions and financial services to small and medium-sized businesses. The company operates in three segments: Business Lending, Equipment Finance, and Technology Solutions. Newtek has a strong track record of innovation and customer satisfaction.
Fundamental Analysis
Valuation: NEWT trades at a P/E ratio of 6.83, below the industry average of 12.28. Its PEG ratio of 3.28 indicates potential for growth.
Earnings: The company's EPS has grown steadily in recent quarters, with a quarterly earnings growth rate of 0.588%.
Revenue: Revenue growth has been consistent, with a quarterly revenue growth rate of 0.217%.
Profitability: NEWT's profit margin of 0.141 is higher than the industry average of 0.105.
Balance Sheet: The company has a strong balance sheet with low debt and ample liquidity.
Technical Analysis
Trend: The stock is currently trading within a neutral range, with the 50-day moving average above the 200-day moving average.
Support and Resistance: Key support levels are at $11.25 and $10.75, while resistance levels are at $12.25 and $13.
Indicators: The RSI and MACD indicators are both neutral, suggesting a lack of clear momentum.
Short Term Outlook
In the short term, NEWT is likely to continue trading within its current range. However, a breakout above $12.25 could signal a move towards the analyst target price of $13.
Long Term Outlook
The company's strong fundamentals and growth potential suggest a positive long-term outlook. NEWT is well-positioned to benefit from the increasing demand for technology solutions and financial services among small businesses.
Analyst Recommendations
The majority of analysts (5) have a "Hold" rating on NEWT, while one analyst has a "Buy" rating. The average analyst price target is $13, representing a potential upside of 12.8%.
