Freshworks demonstrates strong technical momentum, recently setting a new 52-week high.
Shares are up nearly 30% over the past year.
FRSH maintains a 100% “Buy” technical opinion from Barchart.
Analyst sentiment is positive, with most price targets above current levels.
Today’s Featured Stock
Valued at $3.59 billion, Freshworks (FRSH) provides a software-as-a-service platform that enables small and medium-sized businesses to support customers through e-mail, phone, websites, and social networks.
What I’m Watching
I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals and superior current momentum. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. FRSH checks those boxes. The Trend Seeker issued a new “Buy” signal on Oct. 5. Since that signal, shares are up 5.6%.
Barchart’s Technical Indicators for Freshworks
Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.
Freshworks hit a 52-week high of $14.58 on Oct. 16.
Freshworks has a Weighted Alpha of 41.36.
FRSH has a 100% “Buy” opinion from Barchart.
The stock has gained 28.08% over the past 52 weeks.
Freshworks has its Trend Seeker “Buy” signal intact.
The stock recently traded at $14.04 with a 50-day moving average of $12.95.
FRSH had 9 highs and gained 13.76% in the last month.
60-month beta of 0.90
Relative Strength Index (RSI) is at 61.
There’s a technical support level around $13.38.
Don’t Forget the Fundamentals
$3.59 billion market capitalization.
79.17x trailing price-earnings ratio.
Revenue is expected to grow 15.02% this year and another 14.19% next year.
Earnings are estimated to increase by 1.38% this year and an additional 23.97% next year.
Analyst and Investor Sentiment on Freshworks
Wall Street analysts followed by Barchart give the stock 7 “Strong Buy,” 1 “Moderate Buy,” and 9 “Hold” opinions with price targets from $10 to $25.
Value Line rates the stock “Average.”
Morningstar thinks the stock is 13% undervalued with a fair value of $15.83.
CFRA’s MarketScope rates the stock as “Hold.”
10,540 investors are following the stock on Seeking Alpha, which rates it as a “Strong Buy.”
TipRanks’ analysts have a consensus of $15.56, which is above Friday’s close.
Short interest is 8.95% of the float with 4.63 days to cover the float.
The Bottom Line on Freshworks
The stock has had solid growth, excellent profitability, impressive stock momentum, and a wave of upward earnings and revenue estimate revisions from analysts. I am concerned with its valuation, however, and as such advise a rational stop loss.
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