Momentum Stock Watch: NIC Inc. (EGOV)

Company Profile:

NIC Inc. is the nation’s premier provider of innovative digital government solutions and secure payment processing, which help make government interactions more accessible for everyone through technology. The family of NIC companies has developed a library of more than 13,000 digital government services for more than 5,500 federal, state, and local government agencies. Among these solutions is the ground-breaking personal assistant for government, Gov2Go, delivering citizens personalized reminders and a single access point for government interactions. NIC Inc. was founded in 1991 and is based in Olathe, Kansas.

Recent News:

The company announced net income of $15.9 million and earnings per share of 24 cents on total revenues of $87.0 million for the three months ended September 30, 2018.

On Oct. 3, 2018, the U.S. General Services Administration (GSA) awarded the Company a contract to implement a GSA-led information technology modernization project for the United States Department of Agriculture (USDA).

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:

EGOV’s strengths can be seen in its better growth, robust profitability and strong efficiency compared with its peers. Its revenue has increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in MACD and Stochastic oscillator, the RSI stands at 46.18 with positive bias. We rate NIC Inc. (EGOV) a STRONG BUY.