A number of stocks fell in the morning session after the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
Data analytics and digital solutions company ExlService Holdings (NASDAQ:EXLS) will be announcing earnings results this Tuesday after the bell. Here’s what to expect.
While strong cash flow is a key indicator of stability, it doesn’t always translate to superior returns.
Some cash-heavy businesses struggle with inefficient spending, slowing demand, or weak competitive positioning.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
A number of stocks fell in the morning session after disappointing fourth-quarter results from industry bellwether Gartner sparked widespread concerns about a slowdown in the sector.
Business services providers play a critical role for enterprises, assisting them with everything from new hardware integrations to consulting and marketing. But cutbacks in corporate spending and the threat of new AI products have kept sentiment in check,
and over the past six months, the industry’s 8.2% return has trailed the S&P 500 by 5.1 percentage points.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how data & business process services stocks fared in Q3, starting with EXL (NASDAQ:EXLS).
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they’re typically more established than penny stocks.
But their headline prices don’t guarantee quality, and investors should exercise caution as some have shaky business models.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
The best-performing stocks typically have robust sales growth, increasing margins, and rising returns on capital,
and those that can maintain this trifecta year in and year out often become the legends of the investing world.
Over the past six months, EXL’s stock price fell to $39.86. Shareholders have lost 14.6% of their capital, which is disappointing considering the S&P 500 has climbed by 21.3%. This might have investors contemplating their next move.
EXL’s third quarter results were met with a negative market reaction despite outperforming Wall Street’s revenue and non-GAAP earnings expectations. Management pointed to accelerated adoption of its data and AI-led solutions, which now comprise over half of total revenue, as a primary driver of growth. CEO Rohit Kapoor emphasized, “Our data and AI-led revenue grew 18% year-over-year, reaching 56% of total revenue,” highlighting increased client demand for AI-powered workflow transformation. The Insurance, Healthcare and Life Sciences, and Banking segments all contributed to top-line gains, with particular strength in Healthcare.
Investors looking for hidden gems should keep an eye on small-cap stocks because they’re frequently overlooked by Wall Street.
Many opportunities exist in this part of the market, but it is also a high-risk, high-reward environment due to the lack of reliable analyst price targets.
Shares of data analytics and digital solutions company ExlService Holdings (NASDAQ:EXLS) fell 3.7% in the afternoon session after the stock pulled back following the release of its third-quarter results that topped analyst expectations and raised its full-year guidance, though the update was seemingly overshadowed by concerns about competition.
Even if a company is profitable, it doesn’t always mean it’s a great investment.
Some struggle to maintain growth, face looming threats, or fail to reinvest wisely, limiting their future potential.
