About The Deep Value Of Stock For The Digital

Yext (NYSE: YEXT) is limping along with a 6% gain in mid-day trading. The stock trades near the multi-year lows despite a history of strong growth around the 30% range. My investment thesis remains very bullish on investors eventually catching onto this bullish corporate story. The biggest fear in stock for the digital knowledge management company is the reliance on consumers using sites. This YEXT stock or YEXT stock news at https://www.webull.com/quote/nyse-yext is obtaining information about a company via Yext databases. The process still flowed through 3rd-party sites that could eventually find a solution to block Yext out of the process.

  • Moving Beyond Google

The recent product release of Answers is helping to solve this problem. Consumers are now able to get corporate answers directly from a company’s website to prevent potential customers from bouncing right back to Google to search for information on the brand that they couldn’t find on their website.

  • 30% Grower

Whether Yext ends up with 27% revenue growth in FY21 or jumps above 30% growth based on my thesis, the stock shouldn’t trade at yearly lows following the FQ4 report. Before reporting earnings, the stock traded down to $14 and was only about $1 above the yearly low just below $13. Alphabet has consistently traded in the range of 4x forward sales estimates for the last year, Yext has seen their multiple collapses by nearly half to only 3.6x sales.

  • Takeaway

The key investor takeaway is that Yext is back on track after a disappointing FQ3 report in early December. The stock shouldn’t trade at a lower P/S multiple of the slower growing Alphabet. Until this equation flips back into the rational levels of early 2019, Yext is an easy stock to hold for strong returns.

  • Disclosure

We have no positions in any stocks mentioned but maybe initiated a long position in YEXT over the next 72 hours. We are not receiving compensation for it. We are having no business relationship with any company whose stock is mentioned.

  • Additional disclosure

The information contained is for informational purposes only. Nothing in this should be taken as a solicitation to purchase or sell securities. Before you are buying or selling any stock like nyse shw at https://www.webull.com/quote/nyse-shw you should be your researched. You can be reaching your conclusion or you can consult a financial advisor. Investing is including risks and including loss of principal.