ExlService Holdings (EXLS) is the IBD Stock of the Day, driven by a shift in business strategy that’s fueling AI-fueled growth. The company has been expanding its services from business process outsourcing to data analytics, artificial intelligence, and digital solutions.
After an earnings beat-and-raise, analysts moved price targets sharply higher for EXLS stock at the end of October. CEO Rohit Kapoor attributed the success to the ongoing execution of their data and AI-led strategy, which enabled the company to accelerate its growth.
EXLS boasts a 47.37 buy point from a flat base, formed entirely above the 50-day moving average. However, shares turned lower on Wednesday, shedding 3.1%. The stock had been finding support at its 21-day exponential moving average but undercut that level as the Fed signaled a slower pace of rate cuts.
Despite this, ExlService’s earnings have accelerated, with two quarters of increasing sales and revenue growth. The company’s RS Rating stands at 91, indicating it’s outperforming the S&P 500 index.
Analysts now forecast EXLS earnings will increase 14% in 2024 and rise a further 16% in 2025, driven by its partnership with Nvidia, one of the biggest names in AI. The company has also launched an insurance product using Nvidia AI software, which is expected to drive growth in this segment.
With its Composite Rating at near-perfect 98 out of 99, EXLS appears poised for further success as it continues to execute its data and AI-led strategy.
Source: https://www.investors.com/research/ibd-stock-of-the-day/exlservice-stock-ai-drives-accelerating-growth