Momentum Stock Watch: Syntel, Inc. (SYNT)

Company Profile:

Syntel, Inc. provides digital transformation, information technology, and knowledge process outsourcing services worldwide. The company operates through Banking and Financial Services; Healthcare and Life Sciences; Insurance; Retail, Logistics and Telecom; and Manufacturing segments. It offers managed services, including software applications development, maintenance, and testing, as well as IT infrastructure, cloud, and migration services. The company also provides technology services in the areas of enterprise architecture, data warehousing and business intelligence, enterprise application integration, enterprise data management, business process management, and enterprise resource planning. In addition, it offers consulting and implementation services built around SMAC technologies, including social media, Web and mobile applications, big data, analytics, and Internet of things; and KPO services that provide outsourced solutions for knowledge and business processes. Syntel, Inc. was founded in 1980 and is headquartered in Troy, Michigan.

Recent News:

Syntel, Inc. announced that it has been identified as a sample vendor in the Gartner “Hype Cycle for Application Services, 2015” report.

Wall Street sell-side analysts are expecting Syntel, Inc. to report earnings of $0.75 for the current fiscal quarter. Most recently the firm posted earnings per share of $0.72 for the period ending on 2015-06-30.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

SYNT’s strengths can be seen in its better growth, strong profitability and better efficiency. Its revenue and net income have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 55.90. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry and the sector. We rate Syntel, Inc. (SYNT) a Strong BUY.


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