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Bull Of The Day: Yext (YEXT)

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YEXT (YEXT - Free Report) is a Zacks Rank #1 (Strong Buy) that has a D for Value and a B for Growth.  Yext provides digital media technology services. It offers advertising, monetization, phone and directory services which includes business listings on search sites and real-time reputation management. Let’s explore more about this company in this Bull of The Day article.

Description

Yext  offers a cloud-based digital knowledge platform, which allows businesses to manage their digital knowledge in the cloud such as financial information, resources and performance of these resources on a consolidated basis and sync it to other application such as Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri, and Yelp. It offers the Yext Knowledge Engine package on a subscription basis, which has an access to Listings, Pages, Reviews and other features. The Listing feature provides customers with control over their digital presence, including their location and other related attributes published on the used third-party applications. The Pages feature allows customers to establish landing pages on their own websites and to manage digital content on those sites, including calls to action. The Reviews presence enables customers to encourage and facilitate reviews from end consumers. The company was founded by Howard Lerman, Brent Metz, and Brian Distelburger in 2006 and is headquartered in New York, NY..

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

Yext (YEXT - Free Report) has a solid earnings history with the company topping the Zacks Consensus in three of the last four quarters.

Over the course of the last four quarters the average positive earnings surprise works out to be 48%.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

Annual Estimates are moving higher for YEXT.

This quarter has decreased from $0.15 to $0.13.

Next quarter has also slid from $0.16 to $0.15.

The full year fiscal 2025 has increased from $0.40 to $0.41 over the last 30 days.

Next year has seen a slight decrease from $0.66 to $0.64 over the last 30 days.

Growth

For fiscal 2025 the company is expected to show 4% growth with $420 million in sales.  Next year that number grows to $463 million for a 10.2% increase.

Valuation

The forward earnings multiple for YEXT comes in at 17x which is right around this historic market multiple. It should be noted that the current market multiple is at 23x.  The price to book multiple comes in at 5.4x and being a mostly asset slim model that gives this metric plenty of room to run. Price to sales comes in at 2.2x and that number will improve next year as revenue growth accelerates.


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