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EVLV Soars 64% in 6 Months: How to Approach the Stock Ahead of 2025?

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Evolv Technologies (EVLV - Free Report) shares have surged 63.6% over the past six months, outperforming the Zacks Computer & Technology sector’s appreciation of 6.6% and the Zacks Computers - IT Services industry’s return of 18.6%.

EVLV’s exceptional performance can be attributed to its innovative security solutions, strategic partnerships and an expanding customer base.

EVLV’s Earnings Estimates Trend Steady

For 2024, EVLV expects total revenues to be $100 million, indicating 25% year-over-year growth. Adjusted EBITDA is expected to improve 40% year over year.

The Zacks Consensus Estimate for EVLV’s third-quarter revenues is pegged at $25.63 million, indicating year-over-year growth of 26.94%.

The consensus mark for third-quarter loss is pegged at 11 cents per share, unchanged over the past 90 days, and indicating a year-over-year decline of 37.5%.

The Zacks Consensus Estimate for EVLV’s 2024 revenues is pegged at $100.05 million, indicating year-over-year growth of 24.41%.

The consensus mark for EVLV’s 2024 loss is pegged at 26 cents per share, unchanged over the past 90 days, and indicating year-over-year growth of 63.38%.

EVLV beat the Zacks Consensus Estimate for earnings in the trailing four quarters, the average surprise being 56.59%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Rich Partner Base & Expanding Footprint Aid EVLV

EVLV is positioning itself as a leader in the security technology sector, leveraging its innovative solutions, strategic partnerships and an expanding customer base across diverse sectors like education, healthcare and professional sports.

EVLV’s rich partner base includes major players like Motorola Solutions (MSI - Free Report) , Johnson Controls International (JCI - Free Report) , Ricoh Co. (RICOY - Free Report) , ASM Global, Securitas Technology and Alliance Technology Group. In the second quarter of 2024, EVLV’s unit bookings with Motorola skyrocketed 196% on a year-over-year basis.

EVLV’s partnership with ASM Global, a leading operator of live entertainment venues, spans five continents with a portfolio of over 350 premium venues, strengthening the company’s footprint in professional sports and live entertainment markets. The company’s recent high-profile wins include Soldier Field, Target Center, NHL Ice, Honda Center and the Canadian Life Center.

However, despite the strong momentum, EVLV faces several challenges. Limited renewals and the expiration of the ESSER funding in the education sector pose headwinds in the near term.

Furthermore, macroeconomic uncertainties and the slower adoption of EVLV’s technology in larger school districts are impacting the company’s growth.

What Should Investors Do With EVLV Stock?

While EVLV’s impressive portfolio and strategic partnerships are noteworthy, macroeconomic challenges and slower adoption rates in the education sector are concerning.

EVLV currently carries a Zacks Rank #3 (Hold), suggesting that it may be wise for investors to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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