Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 15 Nov, 24 | PRCH | Speculative Buy | USD 3.11 | USD 3.63 | USD 4.05 | 6 days | 30.2% |
Data Powered by EOD Historical Data (“EODHD”).
Porch Group, Inc., together with its subsidiaries, operates a vertical software and insurance platform in the United States. The company operates in two segments, Vertical Software and Insurance. The Vertical Software segment provides software and services to inspection, mortgage, and title companies on a subscription and transactional basis, as well as move and post-move services. This segment offers inspection software and services, title insurance software, mortgage software, moving services, mover and homeowner marketing, and measurement software for roofers. The Insurance segment offers consumers with insurance and warranty products to protect their homes. This segment provides property-related insurance and captive reinsurance products; and warranty products under the Porch Warranty, American Home Protect, and Residential Warranty Services brands. The company was founded in 2011 and is headquartered in Seattle, Washington.
Lower Cash Cycle: 9.5 Days in Q3 FY24 vs Industry Median of 24.5 Days
Improved Profitability: Net Margin of 12.9% in Q3 FY24 vs Industry Median of 1.9%
Lower Liquidity: Current Ratio of 0.83x in Q3 FY24 vs Industry Median of 1.75x
Balance Sheet Risk: % LT Debt to Total Capital of 123.9% in Q3 FY24 vs Industry Median of 7.7%
Competitive Landscape, Execution Risk of Business Model, Dependence on Real Estate Market Cycles, Customer Concentration Risk, Integration Challenges from Acquisitions, Legal Risks, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 3.11 | 2.65 | 3.63 | 4.05 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
PRCH's stock price has found support at key levels and has started to rise, signaling a potential reversal and the likelihood of upward movement. The 14-day Relative Strength Index (RSI) is above the midpoint, indicating the possibility of a pullback that could pave the way for a rally. Furthermore, both the 21-day and 50-day Simple Moving Averages (SMAs) are positioned below the midpoint, bolstering the bullish sentiment, with these levels acting as immediate support.
As per the above-mentioned technical indicators analysis, Porch Group, Inc (NASDAQ: PRCH) is looking technically well-placed on the chart, and a ‘Speculative Buy’ recommendation has been given on the stock at USD 3.11 as of 14 November 2024.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Software - Application
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| PRCH Porch Group Inc |
-0.105 2.06% | 4.99 | - | - | 0.83 | 1.80 | 1.16 | -6.4866 |
| CRM Salesforce.com Inc |
-5.855 1.70% | 337.80 | 100.89 | 27.47 | 7.42 | 4.34 | 7.44 | 26.81 |
| SAPGF SAP SE |
0.05 0.02% | 245.50 | 76.28 | 22.88 | 5.61 | 3.84 | 5.59 | 26.18 |
| SAP SAP SE ADR |
-1.6 0.65% | 246.30 | 75.80 | 22.37 | 5.62 | 3.75 | 5.51 | 25.79 |
| INTU Intuit Inc |
-3.31 0.51% | 640.08 | 55.56 | 32.68 | 11.28 | 10.07 | 11.62 | 40.11 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is November 14, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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