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BILL Plunges 34% Year to Date: How Should You Approach the Stock?
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BILL Holdings (BILL - Free Report) shares have plunged 33.9% on a year-to-date (YTD) basis, underperforming the Zacks Computer & Technology sector’s return of 22%.
Over the same time frame, INTU shares have lost 3.6%. The industry has appreciated 22% YTD.
The underperformance can be attributed to challenging macroeconomic conditions, which hurt the spending power of small and mid-size businesses as they tightened their spending budgets on digital initiatives.
Strong Portfolio Aids BILL’s Prospect
BILL’s strong portfolio is helping it to win new clients.
In fiscal 2024, BILL served 0.5 million businesses. In the fourth quarter of 2024, BILL added a total of 11,300 net new customers, with 4,600 customers from its direct and accounting channels and 6,700 from financial institutions.
BILL’s latest payment solutions, including the Local Transfer option for faster international payments, are expected to enhance its Instant Payment and Invoice Financing services.
BILL’s rich partner base, which includes the likes of Adyen (ADYEY - Free Report) , Regions Financial (RF - Free Report) , Airwalex and Xero, has been helping expand its clientele.
Partnership with Airwalex supports BILL to provide fast international payments. With the help of Xero, BILL integrates its onboarding and bill payment capabilities into its software.
BILL’s collaboration with Adyen helps incorporate its virtual card offering, enhancing accounts payable and receivable solutions for SMBs.
In June 2024, BILL teamed up with Regions Bank to launch Regions CashFlowIQSM, a digital solution designed to streamline payments and enhance cash-management processes for commercial clients.
BILL’s strategic acquisitions of Finmark, Divvy and Invoice2go have been a key catalyst. These strategic acquisitions have expanded BILL’s portfolio by including financial planning tools, enhancing digital financial management and also extending its reach globally.
BILL’s Q1 Outlook Looks Promising
For first-quarter fiscal 2025, BILL expects revenues to be between $346 million and $351 million, indicating growth of 13-15% year over year. Non-GAAP earnings per share are expected to be between 48 cents and 51 cents.
The Zacks Consensus Estimate is pegged at $348.07 million, suggesting a rise of 14.13% year over year.
The consensus mark for earnings is pegged at 49 cents, down by a penny over the past 30 days.
BILL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.70%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BILL - Buy, Hold or Sell?
BILL stock is not so cheap, as the Value Score of D indicates that the stock is overvalued.
The forward 12-month Price/Sales ratio for BILL stands at 4.62X, higher than its Zacks Internet - Software sector’s 3.35X, reflecting a stretched valuation
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BILL Plunges 34% Year to Date: How Should You Approach the Stock?
BILL Holdings (BILL - Free Report) shares have plunged 33.9% on a year-to-date (YTD) basis, underperforming the Zacks Computer & Technology sector’s return of 22%.
BILL shares have also underperformed the Zacks Internet - Software industry and peers like Intuit (INTU - Free Report) .
Over the same time frame, INTU shares have lost 3.6%. The industry has appreciated 22% YTD.
The underperformance can be attributed to challenging macroeconomic conditions, which hurt the spending power of small and mid-size businesses as they tightened their spending budgets on digital initiatives.
Strong Portfolio Aids BILL’s Prospect
BILL’s strong portfolio is helping it to win new clients.
In fiscal 2024, BILL served 0.5 million businesses. In the fourth quarter of 2024, BILL added a total of 11,300 net new customers, with 4,600 customers from its direct and accounting channels and 6,700 from financial institutions.
BILL Holdings, Inc. Price and Consensus
BILL Holdings, Inc. price-consensus-chart | BILL Holdings, Inc. Quote
BILL’s latest payment solutions, including the Local Transfer option for faster international payments, are expected to enhance its Instant Payment and Invoice Financing services.
BILL’s rich partner base, which includes the likes of Adyen (ADYEY - Free Report) , Regions Financial (RF - Free Report) , Airwalex and Xero, has been helping expand its clientele.
Partnership with Airwalex supports BILL to provide fast international payments. With the help of Xero, BILL integrates its onboarding and bill payment capabilities into its software.
BILL’s collaboration with Adyen helps incorporate its virtual card offering, enhancing accounts payable and receivable solutions for SMBs.
In June 2024, BILL teamed up with Regions Bank to launch Regions CashFlowIQSM, a digital solution designed to streamline payments and enhance cash-management processes for commercial clients.
BILL’s strategic acquisitions of Finmark, Divvy and Invoice2go have been a key catalyst. These strategic acquisitions have expanded BILL’s portfolio by including financial planning tools, enhancing digital financial management and also extending its reach globally.
BILL’s Q1 Outlook Looks Promising
For first-quarter fiscal 2025, BILL expects revenues to be between $346 million and $351 million, indicating growth of 13-15% year over year. Non-GAAP earnings per share are expected to be between 48 cents and 51 cents.
The Zacks Consensus Estimate is pegged at $348.07 million, suggesting a rise of 14.13% year over year.
The consensus mark for earnings is pegged at 49 cents, down by a penny over the past 30 days.
BILL’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 24.70%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
BILL - Buy, Hold or Sell?
BILL stock is not so cheap, as the Value Score of D indicates that the stock is overvalued.
The forward 12-month Price/Sales ratio for BILL stands at 4.62X, higher than its Zacks Internet - Software sector’s 3.35X, reflecting a stretched valuation
BILL Holdings currently carries Zacks Rank #3 (Hold), suggesting that investors should wait for a better entry point into the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.