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NVDA   157.56 (-0.45%)
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BABA   80.25 (+5.76%)
AMD   73.69 (+0.68%)
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MU   56.14 (+0.70%)
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GE   85.27 (-0.23%)
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NFLX   279.52 (-0.59%)
QQQ   281.88 (-0.29%)
AAPL   143.20 (-0.71%)
MSFT   240.45 (-0.54%)
META   109.89 (+1.02%)
GOOGL   95.49 (-0.58%)
AMZN   93.42 (-0.56%)
TSLA   182.30 (-0.34%)
NVDA   157.56 (-0.45%)
NIO   10.63 (+5.04%)
BABA   80.25 (+5.76%)
AMD   73.69 (+0.68%)
T   18.89 (+0.37%)
MU   56.14 (+0.70%)
CGC   3.49 (+2.65%)
F   13.76 (+0.22%)
GE   85.27 (-0.23%)
DIS   96.11 (+0.44%)
AMC   7.20 (-1.77%)
PYPL   80.23 (+0.38%)
PFE   49.33 (-0.48%)
NFLX   279.52 (-0.59%)
QQQ   281.88 (-0.29%)
AAPL   143.20 (-0.71%)
MSFT   240.45 (-0.54%)
META   109.89 (+1.02%)
GOOGL   95.49 (-0.58%)
AMZN   93.42 (-0.56%)
TSLA   182.30 (-0.34%)
NVDA   157.56 (-0.45%)
NIO   10.63 (+5.04%)
BABA   80.25 (+5.76%)
AMD   73.69 (+0.68%)
T   18.89 (+0.37%)
MU   56.14 (+0.70%)
CGC   3.49 (+2.65%)
F   13.76 (+0.22%)
GE   85.27 (-0.23%)
DIS   96.11 (+0.44%)
AMC   7.20 (-1.77%)
PYPL   80.23 (+0.38%)
PFE   49.33 (-0.48%)
NFLX   279.52 (-0.59%)

Verint Systems Stock is a Customer Engagement Play

Verint Systems Stock is a Customer Engagement Play Customer engagement software provider Verint Systems (NASDAQ: VRNT) stock has been resilient trading down (-17%) on the year compared to (-26%) for the Nasdaq 100 index. The Company is a benefactor of the cloud migration and digital transformation trend that continues to accelerate. The workforce engagement management is a growing field that plays right into Verint’s wheel house as enterprises seek to optimize workflows and talent performance. Cloud revenues grew at over 30% and the Company signed over net 100 new logos in fiscal Q1 2023 as it transitions to the cloud SaaS model. Verint seeks to close the capacity gap for brands as macroeconomic headwinds become more challenging including wage inflation, talent recruitment, and optimizing workflow management in the post-pandemic hybrid workforce. Utilizing AI capabilities and automation to help improve the customer experience and optimize workflows is driving strength across all key cloud metrics. Prudent investors looking for exposure a company that benefits from cloud, customer engagement and workflow optimization tailwinds can look for opportunistic pullbacks in shares of Verint Systems.

Fiscal Q1 2023 Earnings Release

On June 7, 2022, Verint released its fiscal first-quarter 2023 results for the quarter ended April 2022. The Company reported earnings-per-share (EPS) profits of $0.52 versus a profit of $0.47 consensus analyst estimates, an $0.05 beat. Revenues grew 8.6% year-over-year (YoY) to $219.25 million, beating analyst estimates for $215.52 million. Verint Systems CEO Dan Bodner commented, “I am pleased to report strong cloud momentum in the first quarter with revenue and diluted EPS coming in ahead of expectations. Our first quarter showed strength across all key metrics including New Perpetual License Equivalent (PLE) Bookings growth and mix, with our bookings continuing to shift to SaaS. Looking ahead, we expect our cloud momentum to continue and are raising our annual guidance for cloud revenue growth to a range of 32% to 34%. Behind our strong momentum is our focus on helping brands close the engagement capacity gap with our highly differentiated customer engagement cloud platform.”


Reaffirms Guidance

The Company reaffirmed guidance for fiscal full-year 2023 for EPS of $2.50 versus $2.51 consensus analyst estimates. The Company sees fiscal full-year 2023 revenue between $921.2 million to $958.8 million versus $944.11 million consensus analyst estimates. Cloud revenue growth is expected between 32% and 34% YoY.

Conference Call Takeaways

CEO Bodner believes cloud momentum will remain strong as they raise annual guidance by 200 basis points to a range of 32% to 34%. It’s differentiated customers engagement cloud platform has become more urgent for companies especially in light of recent macroeconomic conditions. The Company helps brands reduce costs and elevate customer experiences. Cloud revenues continue to accelerate growing 38% YoY as the mix continues to shift to the cloud. New PLR bookings rose 27% YoY. The Company also received 26 cloud orders that exceed $1 million total contract values including notable brands like Comcast, Marriott, Zillow, and Wells Fargo. The Company added over 100 new logos including NVIDA, Eastman Chemical, St. John’s University and KinderCare. He highlighted some notable wins in the quarter including a $15 million contract from a leading insurance company and a $3 million order from a healthcare company.

Verint Systems Stock is a Customer Engagement Play

VRNT Opportunistic Pullback Levels

Using the rifle charts on the weekly and daily time frames provides a precision view of the landscape for VRNT stock. The weekly rifle chart triggered a mini inverse pup breakdown on the rejection off the $44.19  Fibonacci (fib) level as it leaned near the $39.46 fib level before staging a bounce. The weekly 5-period moving average (MA) is falling at $43.69 followed by the 15-period MA at $49.44 with weekly lower Bollinger bands (BBs) at the $39.46 fib. The weekly stochastic formed a mini inverse pup falling through the 20-band. The weekly market structure low (MSL) buy triggers on the breakout above $42.89. The daily rifle chart is attempting a breakout with a tight channel as the 5-period MA rises at $42.79 followed by the 15-period MA at $42.48. The daily upper BBs overlap with the daily 50-period MA at $48.29. The daily stochastic formed a mini pup rising through the 50-band. Prudent investors can look for opportunistic pullbacks at the $42.45 fib, $41.75 fib, $41.19, $40.58 fib, $39.46 fib, $38.19 fib, and the $37.19 fib level. Investors can also watch a lead cloud SaaS peer Salesforce (NASDAQ: CRM) to gauge sentiment.

Should you invest $1,000 in Verint Systems right now?

Before you consider Verint Systems, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Verint Systems wasn't on the list.

While Verint Systems currently has a "Moderate Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Verint Systems (VRNT)
2.3766 of 5 stars
$38.12-0.2%N/A-165.74Moderate Buy$59.40
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Jea Yu

About Jea Yu

Contributing Author: Trading Strategies

With over 20 years of active participation and analysis of the US equities, options and futures markets, Mr. Yu brings fresh insights into the workings of the financial markets. He has published four books by esteemed publishers McGraw-Hill, John Wiley & Sons, Marketplace Books and Bloomberg Press. His brainchild, the Underground Trader, was voted Forbes Best of the Web for four consecutive years under the active trader category. He has been a featured speaker all over the country at various expos and seminars who enjoys a standing-room-only reception in the largest convention halls from New York to Las Vegas. He has been quoted and featured in USA Today, Wall Street Journal, Traders Magazine and the Financial Times and various trade publications like Stocks & Commodities, Active Trader and Online Investor. Mr. Yu has a B.A. in Liberal Arts and minor in Business Administration from the University of Maryland.
Contact Jea Yu via email at JeaYu21@gmail.com.