Deutsche Bank Resumed a Hold Rating on Endava plc (DAVA)
The firm noted in a research report that the cautious rating reflects broader industry challenges, highlighting that the payments, processors, and IT services sectors have underperformed against the S&P 500 this year. This underperformance was driven by overly optimistic investor expectations around the November election that did not materialize.
The analyst highlighted that trade uncertainties and concerns about consumer spending have made the outlook for the group very uncertain, which is the most uncertain in the last five years. Under the current market scenario, Deutsche Bank favors companies with consistent sales growth, margin expansion, and strong free cash flow generation.
Endava plc (NYSE:DAVA) is a technology service provider specializing in digital transformation and engineering services. It helps clients design, develop, and deploy software products and platforms using agile and AI-driven approaches.
While we acknowledge the potential of DAVA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.
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Yahoo
10 minutes ago
- Yahoo
Pittsburgh man tells Dave Ramsey he wants to marry his girlfriend of 8 months — but balked when she suggested a prenup
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But when considering marriage, Mike and his girlfriend still have work to do. Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says — and that 'anyone' can do it Financial red flags that can predict a breakup Financial disagreements can put strain on any relationship. In fact, a recent survey from the New York Post found that 32% of Americans are uncomfortable discussing finances in their relationship. And 44% worry that discussing finances with their partner will lead to disagreements. If you cannot openly discuss finances with your partner, it's often a red flag. When sharing your life with someone, the ability to openly dialogue about big picture issues, including money, is critical. When a partner actively avoids talking about finances, it can put an ongoing strain on your relationship. After all, anytime you need to make a household money decision, the lack of communication could quickly lead to an issue. 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CNBC
12 minutes ago
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Bull market enters the 'anything goes' phase. Should you follow?
"Hey, you never know" was the catchphrase of New York State Lottery ads through much of the 1990s. An old friend in advertising who worked on another state's lottery account once told me his creative team couldn't get that line out of their minds, failing to improve upon the way it so perfectly captured the awareness of long odds that make the notion of winning that much more enticing. "I'll probably lose – but what if I don't?" Without belaboring a clumsy and reductionist analogy between negative-sum lottery games and positive-sum investing, the recent re-embrace of meme-stock trading, proliferating short-squeeze stampedes and the alt-coin crypto revival has that "Hey, you never know" flavor. And, frankly, the thing about markets is you truly never do know what stocks will work, or why, or how much good or bad news is priced in at a given moment. The best professional investors of all time get it right maybe 55% of the time, so why wouldn't amateurs shoot for low-probability/high-payout bets? We've already been citing the rushing torrent of speculative adrenaline in racier, gamier stocks for weeks, and now we appear firmly in the "Anything goes" phase of this bull market. The question is whether to view this outbreak of frothy fun as a warning that the broader market has grown euphorically risky, or as a sort of "rationally reckless" impulse that can help energize an otherwise sturdy and poised bull market. An enormous proportion of last week's trading volume was in zombie 2021-era busted momentum plays such as OpenDoor and GoPro , along with heavily shorted household names Kohl's and Krispy Kreme . Last week JPMorgan calculated that the investor crowding into the most volatile and often lower-quality "high-beta" stocks has essentially never been more extreme over the past 35 years. 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"In this new world, an increasingly large number of (particularly young) citizens believe that leveraged speculation is the only way to break out of the American caste system. It is no surprise that online gambling has boomed in this new era," he says. "It is hard to blame the young speculators who have embraced financial nihilism." It's common for financial-wellness types to lament the way consumers of modest means spend on lottery tickets (more than $300 a year per capita in states that have lotteries), when they could build a cushion more safely by saving that money. But research shows that saving such sums is rarely enough to materially change a person's financial reality, whereas the longshot windfall could. 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It remains notable that for all the wild action in the spicier parts of the market, the core of the equity complex has scarcely made a misstep in months. The furious springtime rebound rally has given way to a calm, low-drama grind – a "boring is bullish" mode. The S & P 500 was nearly static on multiple days last week, reflecting some groups cooling off and others playing some catch-up, a so-far orderly rotation that nonetheless bears monitoring. The benefit of the doubt remains with the bullish overall trend, even while the case for a tactical pause or retrenchment builds. Stock reactions to earnings have been slightly net negative for the companies reporting even as the aggregate "beat rate" has been expectedly high. The Nasdaq 100 is getting pretty stretched relative to its longer-term trend and has put in a significant multi-month peak in the second half of July the past two years. Arguably, the consensus is now a bit complacent regarding the potential impact of tariff outcomes, lulled by a slow-and-steady economy helped by a torrid tech capex binge. Valuation is not much of a tactical help, but I'll note that Microsoft – an excellent measuring tool given it's been near the top of the index and at the front lines of tech trends for more than a generation – is again trading above 33-times forward 12-month earnings. Its P/E has been no higher than 34 since the early 2000s, all in the past few years. Elevated, sure, and reflective of a market pricing in plenty of positives. But not exactly bubbly – the stock traded above 50x in the two years before the March 2000 peak of the tech mania, a time when the public intoxication with risk reached genuine historic extremes that the current speculative wave has not yet even closely approached.


CNBC
12 minutes ago
- CNBC
These overbought stocks could take a dip after the market's record gains
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