Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:AB Volvo (publ) (VLVLY) is a manufacturer of trucks, buses, construction equipment, and marine and industrial engines. The Zacks Consensus Estimate for its current year earnings has been revised 8.3% downward over the last 60 days.Endava plc (DAVA) is a technology services company. The Zacks Consensus Estimate for its current year earnings has been revised 25% downward over the last 60 days.Energy Vault Holdings, Inc. (NRGV) is an uti ...

The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major overso ...

The most oversold stocks in the information technology sector presents an opportunity to buy into undervalued companies.The RSI is a momentum indicator, which compares a stock’s strength on days when prices go up to its strength on days when prices go down. When compared to a stock’s price action, it can give traders a better sense of how a stock may perform in the short term. An asset is typically considered oversold when the RSI is below 30, according to Benzinga Pro.Here's the latest list of major overso ...

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, with a value below 30 indicating potential buying opportunities [1] Company Summaries - **Accenture Plc (ACN)**: - Recently acquired IAMConcepts, a Canadian IAM services company - Stock has decreased approximately 26% over the past six months, with a 52-week low of $236.67 - Current RSI value is 28, and shares closed at $243.11 after a 3.5% drop [7] - **C3.ai Inc (AI)**: - Missed first-quarter earnings estimates and provided weak guidance - Stock fell around 5% in the past month, with a 52-week low of $14.70 - Current RSI value is 28, and shares closed at $15.61 after a 0.8% decline [7] - **Endava PLC (DAVA)**: - Reported mixed quarterly results, with a focus on AI integration in projects - Stock has decreased approximately 24% over the past month, with a 52-week low of $9.36 - Current RSI value is 25.7, and shares closed at $9.40 after a 5.3% drop [7]

Core Insights - The information technology sector has several oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for identifying oversold conditions, with a value below 30 indicating that a stock may be oversold [1] Company Summaries - **Accenture Plc (ACN)**: - Recently acquired IAMConcepts, a Canadian company specializing in identity and access management services - Stock has fallen approximately 26% over the past six months, with a 52-week low of $236.67 - Current RSI value is 28, and shares closed at $243.11 after a 3.5% decline [7] - **C3.ai Inc (AI)**: - Missed first-quarter earnings estimates and provided weak guidance - Stock has decreased around 5% over the past month, with a 52-week low of $14.70 - Current RSI value is 28, and shares closed at $15.61 after a 0.8% decline [7] - **Endava PLC (DAVA)**: - Reported mixed quarterly results, with a focus on AI integration among clients - Stock has dropped approximately 24% over the past month, with a 52-week low of $9.36 - Current RSI value is 25.7, and shares closed at $9.40 after a 5.3% decline [7]

Group 1 - The long-term growth outlook for Endava PLC (NYSE: DAVA) remains strong, with attractive upside potential if expectations are met [1] - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies to enhance the investment process [1] Group 2 - There are no disclosed positions in any of the companies mentioned, indicating a neutral stance on potential conflicts of interest [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company [2]

Core Viewpoint - Endava PLC has experienced a significant decline in stock price due to disappointing financial results, despite previously beating analysts' expectations on the bottom line [2][5]. Company Overview - Endava PLC (NYSE:DAVA) is a technology company focused on providing digital transformation services to improve business operations through technology solutions [1]. - The company competes with major tech service providers such as Accenture and Cognizant [1]. Stock Performance - Endava's stock price has dropped by 30.81% this week, following a 14.7% increase in August [2][5]. - The stock has fallen 32.1% from the end of last Friday's trading session to Thursday's market close, currently priced at $10.15, with a slight increase of 1.76% or $0.18 today [3][5]. - Over the past year, the stock has reached a high of $34.94 and a low of $9.84, with a current market capitalization of approximately $593.1 million [4]. Financial Results - The decline in stock price is attributed to disappointing fourth-quarter 2025 financial results, which have led to a decrease in investor confidence [2][5]. - Despite past success in growing cash flow from fiscal years 2021 through 2023, recent results have not met investor expectations, contributing to the stock's decline [4].

Core Insights - Endava reported mixed results for Q4, with earnings per share of 32 cents exceeding the analyst consensus estimate of 16 cents, while quarterly sales of $249.310 million fell short of the consensus estimate of $249.950 million [1] - For FY2026, Endava projects adjusted EPS between $1.11 and $1.27, significantly higher than the market estimate of 85 cents, and anticipates sales in the range of $1.013 billion to $1.033 billion, slightly above the analyst estimate of $1.020 billion [2] - The company emphasized its strategic focus on AI, noting that over half of its employees are now utilizing AI in projects, and it has achieved its highest ever quarterly order book, although it remains cautious due to a volatile operating environment [3] Stock Performance and Analyst Ratings - Endava's shares increased by 0.8% to $10.05 following the earnings announcement [4] - Analysts have adjusted their price targets for Endava, with Needham maintaining a Buy rating but lowering the target from $20 to $12, Morgan Stanley maintaining an Equal-Weight rating and reducing the target from $17 to $11, and Guggenheim also maintaining a Buy rating while lowering the target from $20 to $18 [6]

Industry Overview - The IT services demand environment has experienced various cycles over the years, with significant changes influenced by market conditions and technological advancements [1] - The digital transformation wave, which began after the initial downturn in the early 2000s, has been a major driver of growth for the industry over the past two decades [2] Company Insights - Endava has been a key player in the IT services sector, successfully navigating through different market phases since its inception [2] - The company capitalized on increased technology spending that emerged following the COVID-19 pandemic, marking a significant boost in demand for IT services [3]

Core Insights - Endava plc (NYSE:DAVA) is a British tech consultancy that specializes in modernizing IT systems for large corporations, but it has faced significant challenges in the stock market, with shares dropping over 30% and stock value plummeting by more than 80% since early 2024 due to guidance that did not meet investor expectations [1][6] Financial Performance - On September 4, 2025, DAVA reported earnings per share of $0.329, surpassing the estimated $0.32, and achieved revenue of approximately $256.3 million, significantly exceeding the estimated $184 million [2] - Despite the positive earnings surprise, the company's revenue decreased by 4% year over year, and its workforce was reduced by 5%, indicating challenges in maintaining consistent growth [2][6] - The company set its full-year fiscal 2026 revenue and earnings targets below expectations, despite the positive earnings report [3][6] Valuation Metrics - DAVA has a price-to-earnings (P/E) ratio of approximately 24.05, indicating the price investors are willing to pay for each dollar of earnings [4] - The price-to-sales ratio stands at about 0.56, suggesting that the market values the company's sales at just over half of its current market price [4] - The enterprise value to sales ratio is approximately 0.71, reflecting the company's total valuation relative to its sales [4] Financial Stability - DAVA maintains a relatively low level of debt compared to its equity, with a debt-to-equity ratio of about 0.29, indicating financial stability [5][6] - The current ratio is approximately 2.18, suggesting good short-term financial health [5][6]