While the coronavirus vaccine deployment is gradually curbing the spread of the virus, individuals and businesses are still relying significantly on technological solutions to remain operational and/or to seek entertainment. The demand for technology products and services has been rising thanks to a continuation of pandemic-driven trends, and these trends are likely to remain unchanged even after the pandemic.
However, there are some technology companies that have underperformed significantly despite the sector’s growth. These companies have failed to capitalize on the change in consumer and business behavior.
Fiserv, Inc. (FISV – Get Rating), Coupa Software, Inc. (COUP – Get Rating), and Cree, Inc. (CREE – Get Rating) are three such companies. They have seen a fall in their stock prices. And analysts are skeptical about the performance of these stocks in coming quarters too. So, we think investors should take a pass on these stocks for now.
FISV delivers financial technology related services that debit and credit card transaction processing. The company has worldwide operations. FISV’s stock has declined 10.2% over the past year.
FISV recently announced plans to acquire Ondot Systems, a digital experience platform for financial institutions. However, it remains to be seen whether the new acquisition will benefit the company.
For the quarter ended September 30, 2020 the company’s adjusted revenue declined 1% versus the same period last year. Its revenue in its Acceptance segment also declined 1% during that period. FISV is expected to see a revenue decline of 2.9% in 2020.
FISV’s poor prospects are also apparent in its POWR Ratings. The stock has an overall rating of C, which equates to Neutral in our proprietary ratings system. FISV has a grade of D for both Value and Sentiment. The Value grade is consistent with the stock’s higher-than-industry forward Price/Sales ratio (4.78 vs. 4.07).
In total, we rate FISV on eight different components. Beyond what we stated above we have also given FISV grades for Stability, Momentum, Growth, Quality, and Industry. Get all the FISV ratings here.
COUP provides a cloud-based spend management platform for enterprise customers. The company has users worldwide. COUP’s stock price has declined 6.23% year-to-date.
Currently, COUP is not profitable, and it may remain unprofitable in the near future. For the quarter ended September 30, 2020 the company’s operating loss increased 98.8% compared to the same period last year. Its net income declined 8.4% during the same period. COUP is expected to see an…
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