Investors interested in stocks from the Internet - Software sector have probably already heard of Nice (NICE) and Paycor HCM, Inc. (PYCR) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets c ...

Company Performance and Financials - NICE launched CXone Mpower, an AI-driven platform to enhance customer service automation and engagement, tailored to customer needs [1] - The company secured over 100 large enterprise accounts year-to-date, displacing legacy competitors and attracting 45 leading brands after failed deployments from other cloud vendors [2] - For Q1 fiscal 2025, the Zacks Consensus Estimate for earnings is $2 90 per share, indicating a 12 4% YoY growth, while revenue is estimated at $721 31 million, a 9 4% increase from the prior-year quarter [3] - NICE shares have fallen 20 4% over the past year, underperforming the Zacks Computer & Technology sector (29 3%) and the Zacks Internet – Software industry (30 6%) [4] - The company's earnings have beaten the Zacks Consensus Estimate in the trailing four quarters, with an average surprise of 4 88% [3] Market Position and Competition - NICE faces stiff competition in the Customer Engagement and Financial Crime and Compliance segments, competing with companies like Aspect, Calabrio, Genesys, and Verint Systems in Workforce Optimization [7] - In the Contact Center as a Service market, NICE competes with key players such as Avaya, Cisco Systems, Five9, and TalkDesk, alongside niche vendors [8] - The company leads in AI-driven solutions for customer experiences, financial crime, and digital policing transformation, monitoring 5 billion transactions daily and safeguarding $6 trillion [13] - NICE serves the top 10 global banks and has a projected Total Addressable Market (TAM) of $5 billion by 2028, driven by advancements in its X-Sight platform and cloud solutions [13] Growth Drivers and Challenges - NICE has expanded its partner ecosystem by adding over 40 partners, including 20 international partners, which is expected to drive growth [2] - The company's presence in over 150 countries and engagement with more than 85% of Fortune 100 customers provides a solid foundation for international expansion [10] - Despite challenges, NICE is expected to benefit from growth in the cloud business and AI domain, driven by platform innovation and a growing client base [6] - The adoption of AI solutions like Autopilot, CSAT, and Copilot has significantly boosted NICE's performance by enhancing customer engagement and automating services [9] - The company's negative share price movement is attributed to declining service revenue due to the transition to cloud-based services and volatility in product revenues [5] Industry and Market Trends - NICE's Financial Crime and Compliance market solutions, such as X-Sight and Xceed, help financial organizations manage risks, prevent fraud, and ensure compliance in real-time [12] - Key competitors in the Financial Crime and Compliance space include BAE Systems, FICO, NASDAQ Smarts, Oracle, and SAS Institute, offering specialized and comprehensive solutions [12]

Company Performance - Nice (NICE) closed at $165.72, reflecting a -0.37% change from the previous day, underperforming the S&P 500 which gained 0.16% [1] - Over the past month, Nice's shares have decreased by 9.55%, compared to a loss of 0.39% in the Computer and Technology sector and a 2.7% loss in the S&P 500 [1] Upcoming Earnings - Nice is expected to report an EPS of $2.96, indicating a 25.42% increase from the same quarter last year [2] - Revenue is forecasted at $713.01 million, representing a 14.41% growth from the prior-year quarter [2] Analyst Forecasts - Recent revisions to analyst forecasts for Nice are important as they reflect near-term business trends and analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for stocks [4] Valuation Metrics - Nice has a Forward P/E ratio of 13.48, significantly lower than the industry average of 28.07, suggesting it is trading at a discount [6] - The PEG ratio for Nice is 0.93, compared to an industry average of 2.1, indicating favorable growth expectations relative to its valuation [6] Industry Context - The Internet - Software industry, which includes Nice, has a Zacks Industry Rank of 25, placing it in the top 10% of over 250 industries [7] - Strong industry rankings correlate with stock performance, with the top 50% of rated industries outperforming the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Nice (NICE), and suggests that while the average brokerage recommendation (ABR) indicates a positive outlook, it may not be a reliable basis for investment decisions [1][4]. Group 1: Brokerage Recommendations - Nice has an average brokerage recommendation (ABR) of 1.33, indicating a position between Strong Buy and Buy, based on recommendations from 15 brokerage firms [2]. - Out of the 15 recommendations, 12 are Strong Buy and 1 is Buy, which accounts for 80% and 6.7% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high potential for price appreciation [4]. - The vested interests of brokerage firms can lead to a bias in analysts' ratings, with a ratio of five "Strong Buy" recommendations for every "Strong Sell" [5][9]. - This misalignment of interests suggests that brokerage recommendations may mislead investors rather than provide accurate insights into stock price movements [6][9]. Group 3: Zacks Rank as an Alternative - Zacks Rank, a proprietary stock rating tool, categorizes stocks into five groups and is based on earnings estimate revisions, making it a more effective indicator of near-term stock performance [7][10]. - Unlike ABR, which is based solely on brokerage recommendations, Zacks Rank is updated frequently to reflect changes in earnings estimates, providing timely predictions for stock prices [11]. - For Nice, the Zacks Consensus Estimate for the current year remains unchanged at $11.05, leading to a Zacks Rank of 3 (Hold), suggesting caution despite the positive ABR [12][13].

Core Insights - NICE's shares have increased by 10.9% over the past three months, outperforming the Zacks Computer & Technology sector's return of 10.2% due to strong growth in the cloud business, which accounted for 72.5% of total revenues and experienced a 24% year-over-year growth in Q3 2024 [1][3] Financial Performance - NICE reported total revenues of $690 million for Q3 2024, reflecting a 15% year-over-year increase, with cloud revenues contributing $500 million, marking a 24% increase [3] - Annual recurring revenues from cloud services surpassed $2 billion, indicating significant growth potential driven by increasing demand for scalable and innovative cloud solutions [3] Segment Performance - Customer engagement revenues grew by 16% year-over-year, primarily due to the success of the AI-powered CXone solutions [4] - Revenues from financial crime and compliance grew by 8% year-over-year, driven by cloud revenues and sales of X-Sight and Xceed platforms [4] - The Financial Crime and Compliance segment is experiencing slowing growth, alongside a 12% decline in the APAC region, presenting challenges [2] Strategic Initiatives - NICE is focusing on four strategic pillars: Digital, Analytics, Cloud, and AI & Automation, to enhance customer experiences and drive growth [5] - The introduction of CXone Mpower aims to fully automate customer service, allowing businesses to optimize their service structures [6] AI Adoption and Partnerships - The adoption of AI solutions, including products like Autopilot and Copilot, has significantly contributed to NICE's performance, with a six-fold increase in annual contract value for CXone Copilot in Q3 2024 [7] - NICE has expanded its partner ecosystem in 2024, adding over 40 new partners, including 20 international ones, to support its CXone platform [5][8] Customer Base and Market Presence - NICE serves over 25,000 organizations across 150 countries, including 85 of the Fortune 100 companies, showcasing its strong market presence [9] - AUSIEX's implementation of the NICE CXone platform resulted in a 33% increase in customer engagement [9] Future Guidance - For FY24, NICE projects non-GAAP revenues between $2.715 billion and $2.735 billion, indicating a 15% year-over-year growth at the midpoint, with non-GAAP earnings estimated between $10.95 and $11.5 per share, implying a 26% year-over-year growth at the midpoint [10] - The Zacks Consensus Estimate for revenues is pegged at $2.73 billion, indicating a year-over-year growth of 14.69% [10]

Core Insights - The article highlights the first positive reimbursement decision for LYTENAVA™ (bevacizumab gamma) by NICE, marking a significant milestone for Outlook Therapeutics in the treatment of wet AMD [1][2][4] Company Overview - Outlook Therapeutics, Inc. is a biopharmaceutical company focused on developing and commercializing LYTENAVA™ for retinal diseases, particularly wet AMD [9] - LYTENAVA™ is the first ophthalmic formulation of bevacizumab approved in the EU and UK for treating wet AMD, with an initial 10 years of market exclusivity [1][9] Regulatory Approval and Market Launch - NICE has recommended LYTENAVA™ as a treatment option for wet AMD, applicable in England and Wales, following its marketing authorization by the UK Medicines and Healthcare products Regulatory Agency (MHRA) [2][3] - The commercial launch of LYTENAVA™ in the UK is anticipated in the first half of 2025, with plans for subsequent launches in EU countries [2][9] Clinical Evidence - The NICE recommendation was based on results from three completed registration clinical trials: NORSE ONE, NORSE TWO, and NORSE THREE, along with supporting studies [4] Strategic Collaborations - Outlook Therapeutics has entered a strategic collaboration with Cencora to support the global commercial launch of LYTENAVA™, focusing on market access and distribution efficiency [5]

Core Insights - Nice Ltd (NASDAQ: NICE) has experienced a decline of 5% over the past year, contrasting sharply with a 32% gain in the S&P 500 index [1] Company Performance - The performance of Nice Ltd has been underwhelming compared to broader market indices, indicating potential challenges or market sentiment issues affecting the company [1] Analyst Perspective - The article reflects a long position in Nice Ltd, suggesting a belief in the company's potential despite recent performance [2]

Core Insights - NICE has enhanced its contact center operations through a partnership with Maxicare, improving customer experience and agent empowerment [1] - The implementation of NICE's Workforce Management (WFM) has led to significant improvements in key performance metrics for Maxicare [2][3] - NICE's cloud revenues have shown substantial growth, reflecting the increasing demand for cloud-native solutions [4] Group 1: Operational Enhancements - Maxicare has utilized NICE WFM to improve average handle time, response time, and call abandonment rates [2] - The collaboration has resulted in a 90% customer satisfaction rate for Maxicare, with plans for further service quality enhancements [3] Group 2: Product Portfolio and Revenue Growth - NICE's diverse product portfolio, including solutions like Actimize and CXone, has contributed to a 24% year-over-year increase in cloud revenues, reaching $500 million in Q3 2024 [4] - The successful implementation of NICE CXone by AUSIEX has led to a 33% increase in customer engagement [5] Group 3: Strategic Partnerships - NICE's partnerships with AT&T and Microsoft have been pivotal in attracting new customers and expanding its market presence [7][8] - The collaboration with AT&T focuses on providing a unified incident capture and data analytics solution for NextGen 9-1-1 centers [7] Group 4: Financial Estimates - The Zacks Consensus Estimate for NICE's Q4 2024 revenues is $713.01 million, indicating a 14.41% year-over-year growth [9] - The consensus estimate for earnings per share is $2.96, reflecting a 25.42% year-over-year increase [9] Group 5: Competitive Landscape - NICE faces challenges from stiff competition and foreign exchange headwinds in the APAC market, impacting its top-line growth [11] - Competitors like Five9 and Salesforce are enhancing their portfolios in the customer experience market, posing additional challenges for NICE [12]

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Core Viewpoint - Nice (NICE) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the consensus measure of EPS estimates from sell-side analysts, reflecting the company's changing earnings picture [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4][6]. Company Performance and Outlook - The upgrade for Nice indicates an improvement in the company's underlying business, which is expected to lead to increased stock prices as investors respond positively to this trend [5][11]. - For the fiscal year ending December 2024, Nice is projected to earn $10.83 per share, representing a 23.2% increase from the previous year, with a 1% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - The upgrade to Zacks Rank 2 places Nice in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11].