Company Overview - OneSpan Inc. is a technology company with a market capitalization of $715 million, specializing in digital security solutions [1] - The company's product offerings include cloud authentication, mobile application security, electronic signatures, and other digital agreement authentication products [1] Industry Focus - OneSpan operates within the digital security sector, which is increasingly important as businesses and consumers seek secure online transactions and communications [1] - The company's strong credibility in the digital security space positions it well to capitalize on growing market demands for secure digital solutions [1]

Group 1 - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a consensus between Strong Buy and Buy, with 60% of the recommendations being Strong Buy from five brokerage firms [2][4] - The reliability of brokerage recommendations is questioned, as studies suggest they have little success in guiding investors towards stocks with significant price appreciation potential [4][5] - Analysts from brokerage firms tend to exhibit a positive bias in their ratings due to vested interests, leading to a higher number of favorable ratings compared to negative ones [5][9] Group 2 - The Zacks Rank, a proprietary stock rating tool, categorizes stocks from Strong Buy to Strong Sell and is based on earnings estimate revisions, making it a more effective indicator of near-term stock performance compared to ABR [7][10] - The Zacks Rank is updated more frequently than ABR, as it reflects real-time changes in earnings estimates, providing timely predictions for future stock prices [11] - OneSpan's Zacks Consensus Estimate for the current year remains unchanged at $1.34, suggesting that analysts have steady views on the company's earnings prospects, which may lead to performance in line with the broader market [12][13]

Company Performance - OneSpan (OSPN) shares have increased by 7.7% over the past month and reached a new 52-week high of $19.09, with a year-to-date gain of 74.4% compared to 33% for the Zacks Computer and Technology sector and 39.6% for the Zacks Internet - Software industry [1] - The company has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters, reporting EPS of $0.33 against a consensus estimate of $0.21 in its latest earnings report on October 30, 2024 [2] Valuation Metrics - OneSpan currently has a Value Score of D, with Growth and Momentum Scores of A and B respectively, resulting in a VGM Score of B [5] - The stock trades at 14X current fiscal year EPS estimates, below the peer industry average of 34.7X, and at 5X trailing cash flow compared to the peer group's average of 28.5X [5] Zacks Rank - OneSpan holds a Zacks Rank of 1 (Strong Buy) due to rising earnings estimates, aligning with the recommendation for investors to select stocks with Zacks Rank of 1 or 2 and Style Scores of A or B [6] Industry Comparison - The Internet - Software industry is in the top 14% of all industries, indicating favorable conditions for both OneSpan and its peer AppFolio, Inc. (APPF) [9] - AppFolio has a Zacks Rank of 2 (Buy) and reported a 27.45% earnings beat, with expected earnings of $5.66 per share on revenue of $790.55 million for the current fiscal year [7][8]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the aim of buying high and selling higher, capitalizing on established price movements [1] - The Zacks Momentum Style Score helps define momentum characteristics, with OneSpan (OSPN) currently holding a Momentum Style Score of B [2] - Style Scores complement the Zacks Rank system, which has a strong track record of outperforming the market; OSPN has a Zacks Rank of 1 (Strong Buy) [3] Group 2: OneSpan's Performance Metrics - OSPN shares have increased by 6.94% over the past week, outperforming the Zacks Internet - Software industry, which rose by 5.38% [6] - Over the last quarter, OSPN shares rose by 10.92%, and over the past year, they increased by 75.47%, while the S&P 500 only moved 7.42% and 32.55%, respectively [7] - The average 20-day trading volume for OSPN is 460,511 shares, indicating a bullish sign if the stock is rising with above-average volume [8] Group 3: Earnings Outlook - Recent earnings estimate revisions for OSPN show one upward revision and no downward revisions, increasing the consensus estimate from $1.16 to $1.34 over the past 60 days [10] - For the next fiscal year, there has been one upward estimate revision with no downward changes, indicating positive earnings outlook [10] - Given these factors, OSPN is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a potential pick for near-term gains [11]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on OneSpan (OSPN), and emphasizes the importance of using these recommendations in conjunction with other analytical tools for making investment decisions [1][4]. Group 1: Brokerage Recommendations - OneSpan has an average brokerage recommendation (ABR) of 1.80, indicating a rating between Strong Buy and Buy, based on recommendations from five brokerage firms [2]. - Out of the five recommendations, three are classified as Strong Buy, accounting for 60% of the total recommendations [2]. - Despite the positive ABR, the article cautions against making investment decisions solely based on this metric, as studies show limited success of brokerage recommendations in predicting stock price increases [4]. Group 2: Analyst Bias and Tools - Analysts from brokerage firms often exhibit a strong positive bias in their ratings due to vested interests, leading to a higher number of Strong Buy recommendations compared to Strong Sell recommendations [5][9]. - The Zacks Rank, a proprietary stock rating tool, is presented as a more reliable indicator of near-term price performance, based on earnings estimate revisions [7][10]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely earnings estimate revisions, while the ABR may not always be up-to-date [8][11]. Group 3: Earnings Estimates and Investment Potential - The Zacks Consensus Estimate for OneSpan has increased by 18.1% over the past month, reaching $1.34, indicating growing optimism among analysts regarding the company's earnings prospects [12]. - The significant change in the consensus estimate, along with other factors, has resulted in a Zacks Rank of 1 (Strong Buy) for OneSpan, suggesting potential for stock appreciation [13].

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even ...

OneSpan Inc. (NASDAQ: OSPN ) reported Q3 2024 earnings , with results in line with expectations and guidance. The company's revenues decreased YoY, but were primarily driven by hardware and software sunsetting, with growth ex-hardware of 5.5%. More importantly, the company continues to expandLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspect ...

In the latest market close, OneSpan (OSPN) reached $14.58, with a +0.83% movement compared to the previous day. The stock exceeded the S&P 500, which registered a loss of 0.03% for the day. Elsewhere, the Dow lost 0.61%, while the tech-heavy Nasdaq added 0.56%.The the stock of internet security company has fallen by 10.3% in the past month, lagging the Computer and Technology sector's gain of 1.65% and the S&P 500's gain of 1.39%.The investment community will be paying close attention to the earnings perfor ...

In the latest market close, OneSpan (OSPN) reached $14.46, with a -0.07% movement compared to the previous day. This change lagged the S&P 500's daily gain of 0.22%. On the other hand, the Dow registered a loss of 0.33%, and the technology-centric Nasdaq increased by 0.76%.Shares of the internet security company witnessed a loss of 10.84% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.29% and the S&P 500's gain of 1.47%.The investment community wil ...

OneSpan (OSPN) ended the recent trading session at $14.68, demonstrating a -0.74% swing from the preceding day's closing price. This change lagged the S&P 500's 0.17% loss on the day. Meanwhile, the Dow lost 0.44%, and the Nasdaq, a tech-heavy index, lost 0.04%. Coming into today, shares of the internet security company had lost 3.59% in the past month. In that same time, the Computer and Technology sector gained 1.41%, while the S&P 500 gained 1.25%. The investment community will be closely monitoring the ...