This Little-Known Software Stock Just Set a New All-Time High
Red Violet (RDVT) demonstrates strong price momentum, with its shares up more than 40% over the past year.
Shares maintain a 100% "Buy" technical opinion from Barchart.
Despite being seen as slightly overvalued by Morningstar, RDVT maintains robust technical support and broad investor interest, powering its current upward trajectory.
Valued at $1.18 billion, Red Violet (RDVT) is a software and services company. It specializes in big data analysis, providing cloud-based, mission-critical information solutions to enterprises.
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. RDVT checks those boxes. The Trend Seeker issued a new "Buy" signal on July 29. Since then, the stock has gained 7.72%.
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The stock recently traded at $73.02 with a 50-day moving average of $66.52.
Revenue is projected to grow 18.34% this year and another 13.63% next year.
Earnings are estimated to increase by 25.77% this year and an additional 5.20% next year.
The Wall Street analysts followed by Barchart give the stock 2 "Strong Buy" and 1 "Hold" opinions with price targets between $73 and $85.
Morningstar thinks the stock is 6% overvalued with a fair value of $68.77.
5,000 investors are following the stock on Seeking Alpha, which rates it a "Strong Buy."
TipRanks' analysts' price targets are between $73 and $81 with a consensus price target of $77.
Short interest is 3.72% of the float with 3.24 days to cover the float.
While the valuation is a little high, the company is profitable, has great price momentum, and is gathering positive analyst commentary.
Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculate should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.
