Investors with an interest in Technology Services stocks have likely encountered both TTEC Holdings (TTEC) and Everpure (PSTG) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.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 favors stocks with strong earnings estimate revision trend ...

Core Insights - TTEC has appointed Chris Brown as president of TTEC Digital, effective immediately, succeeding David Seybold who will depart on April 30, 2026 [1][2] - Brown's leadership is expected to drive TTEC Digital's global strategy, P&L management, and operational execution, leveraging his extensive experience and institutional knowledge [2][3] Leadership Transition - David Seybold will remain with TTEC until April 30, 2026, to ensure a smooth transition [2] - Chris Brown has been with TTEC since 2015 and previously served as Chief of Staff to the Chairman and CEO, focusing on corporate development and strategic partnerships [3][4] Chris Brown's Background - Brown has over two decades of experience advising technology and services firms on M&A, capital markets, and strategic transformation, with a focus on SaaS, AI, and cloud sectors [4] - He has held senior leadership roles in investment banking at UBS and management consulting at Mercer, and played a key role in the acquisition of Liquid Robotics by Boeing [4] TTEC Digital's Vision - Brown emphasized the unique capabilities of TTEC Digital in combining talent, technology partnerships, and AI expertise to deliver value for enterprise clients globally [5] - TTEC Digital is recognized as the world's largest pureplay CX technology and services provider, enhancing customer engagement and operational efficiency [5][6] Company Overview - TTEC Holdings, Inc. is a global consulting, technology, and managed services company focused on data, AI, and customer experience [6] - The company offers outcome-based solutions that span the entire enterprise and improve customer interactions across various channels [6]

Core Insights - TTEC has launched Fin-TTEC, a fintech-focused practice aimed at providing scalable, end-to-end operational support to facilitate sustainable growth in the fintech sector [1][7] - The practice addresses the operational challenges faced by fintech companies, emphasizing the need for a robust operational backbone to support rapid growth [2][3] Operational Support Features - Fin-TTEC offers flexible solutions that adapt to clients' evolving needs, ensuring comprehensive operational support throughout the customer lifecycle [5][6] - The approach includes 100% interaction analysis to prevent revenue loss, agentic AI for faster customer onboarding, and real-time AI guidance for resolving complex issues [5][6] Automation and Efficiency - The practice incorporates automation to handle routine tasks, ensuring human agents focus on complex financial needs [6] - It leverages global delivery and real-time localization to provide seamless support across different markets, enhancing scalability during demand surges [6] Market Positioning - Fin-TTEC formalizes TTEC's specialization in supporting digital financial services firms amid increasing regulatory expectations and customer experience demands [7] - The practice serves a variety of high-growth fintech sectors, including payments, lending, digital banking, and embedded finance [7]

Industry Overview - The technology services industry is mature with strong demand for services, leading to growth in 2025. The global shift towards digitization presents opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [1] - Companies are rapidly adopting generative AI, machine learning (ML), blockchain, and data science to gain a competitive edge, driven by elevated demand for enterprise software that enhances productivity and decision-making [2] Current Challenges - The technology services sector has experienced a loss of momentum in 2026 due to macroeconomic concerns and geopolitical conflicts. Despite these challenges, a focus has been placed on three small-sized technology services stocks with favorable Zacks Ranks that have delivered double-digit returns year to date [3] Company Highlights TTEC Holdings Inc. - TTEC Holdings is a customer experience technology and services company, operating through TTEC Digital and TTEC Engage segments, focusing on customer engagement solutions [7][8] - Expected revenue growth rate is -5% and earnings growth rate is 9.1% for the current year, with a 5.3% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [9] Dave Inc. - Dave provides banking apps and personal financial management tools, including budgeting tools and discretionary overdraft services [11][12] - Expected revenue growth rate is 25.4% and earnings growth rate is 9.9% for the current year, with a 3% improvement in the Zacks Consensus Estimate for earnings over the last seven days [12] LiveRamp Holdings Inc. - LiveRamp operates as a marketing technology company, offering data foundation, digital transformation, and consumer engagement services [13][14] - Expected revenue growth rate is 8.6% and earnings growth rate is 31.8% for the next year, with a 0.4% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [14]

Core Viewpoint - TTEC Holdings (TTEC) is positioned as a strong investment opportunity due to its improving earnings outlook and analysts' increasing earnings estimates [1][2]. Earnings Estimate Revisions - The trend of rising earnings estimate revisions reflects growing analyst optimism regarding TTEC's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, TTEC is projected to earn $0.26 per share, indicating a year-over-year decline of 7.1%. However, the Zacks Consensus Estimate has increased by 5.56% due to one upward revision [6]. - For the full year, TTEC is expected to earn $1.20 per share, representing a 9.1% increase from the previous year. The consensus estimate has risen by 6.4% following one upward revision [7][8]. Zacks Rank - TTEC currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in revising earnings estimates upward, which historically correlates with stock outperformance [3][9]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [9]. Stock Performance - TTEC's stock has appreciated by 5.8% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [10].

Core Insights - TTEC has achieved Great Place to Work Certification™ in 15 countries and regions based on employee feedback from the Trust Index™ survey [1][2][3] Group 1: Certification Details - In 2026, TTEC received certification in Australia, Brazil, Bulgaria, Canada, Colombia, Costa Rica, Egypt, Greece, India, Mexico, Philippines, Poland, South Africa, the United Kingdom, and the United States, with South Africa being certified for the first time [2] - The certification is awarded to organizations that meet strict benchmarks for employee trust, leadership credibility, workplace fairness, pride, and camaraderie [3] Group 2: Company Culture and Strategy - TTEC's Chief People Officer highlighted that the recognition reflects the experiences of employees and emphasizes the importance of local leadership, listening, and investment in people [4] - The company's culture strategy focuses on creating meaningful career pathways, developing frontline leaders, and providing AI-enabled tools and training to enhance performance and professional growth [4] Group 3: Industry Context - As organizations globally compete for skilled talent in an AI-driven customer experience landscape, TTEC's certification underscores its commitment to building high-performing teams based on trust, inclusion, and opportunity [5]

Core Viewpoint - TTEC Holdings (TTEC) is currently viewed as a more attractive investment option compared to Pure Storage (PSTG) for value investors, based on various valuation metrics and earnings outlook [1][7]. Valuation Metrics - TTEC has a forward P/E ratio of 2.08, significantly lower than PSTG's forward P/E of 27.03 [5]. - TTEC's PEG ratio stands at 0.17, indicating a favorable valuation when considering expected earnings growth, while PSTG has a PEG ratio of 1.45 [5]. - TTEC's P/B ratio is 1.07, compared to PSTG's P/B ratio of 14.36, further highlighting TTEC's undervaluation [6]. Earnings Outlook - TTEC holds a Zacks Rank of 1 (Strong Buy), indicating a positive revision in earnings estimates, while PSTG has a Zacks Rank of 3 (Hold) [3]. - The improving earnings outlook for TTEC positions it favorably within the Zacks Rank model, suggesting it is a superior value option at this time [7].

Core Insights - TTEC has won multiple honors at the 2026 Stevie Awards for Sales & Customer Service, including three Gold, one Silver, and three Bronze awards, highlighting its innovation in AI-driven customer experience and sales excellence [6][14]. Awards and Recognitions - TTEC's Learning Wizard Suite received a Gold award for Customer Service or Call Center Training Practice of the Year, recognized for accelerating associate readiness and enhancing frontline performance [7]. - Natalia Woźniak was awarded Gold as Sales Representative of the Year for her sustained excellence and leadership [7]. - Batuhan Yorgancilar earned Gold as Rising Star in Sales (Under 30) for his impactful contributions to emerging sales programs [8]. - TTEC Poland received a Silver award for Best Use of Thought Leadership in Complex Sales, showcasing its innovative approach to navigating complex enterprise environments [9]. - TTEC Greece was recognized with a Bronze award for Achievement in Global Customer Service Excellence, emphasizing its scalable multilingual customer experience delivery model [15]. - The SmartHire solution was awarded Bronze for Best Use of AI Integration in Contact Centers, demonstrating TTEC's commitment to leveraging AI for optimizing hiring processes [15]. Company Strategy and Vision - TTEC's President John Abou emphasized the importance of combining innovative AI solutions with human expertise to achieve measurable outcomes, particularly as enterprises undergo AI transformation [11]. - The Stevie Awards celebrate organizations that drive measurable impact and innovation across industries, aligning with TTEC's mission to enhance customer experience through advanced technology [11].

Core Insights - TTEC Digital has been recognized for its expertise in customer engagement and data analytics, receiving a Google Public Sector Partner Expertise Badge for Customer Engagement [1] - The company has completed the Google Partner Development Sprint for Data and Analytics, emphasizing its commitment to delivering advanced AI solutions for government agencies [2] Company Achievements - TTEC Digital's recognition and completion of the Data and Analytics Sprint demonstrate its capability to enhance constituent engagement using Google Cloud technology [3] - As a Premier Google Cloud Co-sell Partner, TTEC Digital holds an exclusive status among top Google partners globally, highlighting its strong partnership with Google [4] Service Offerings - TTEC Digital specializes in transforming customer experiences for public sector organizations by integrating industry expertise with human-centered design, data analytics, AI, and consulting services [3] - The company provides a range of services including AI-enhanced customer engagement, customer acquisition, tech support, and fraud prevention, leveraging next-generation digital technology [5]

Financial Data and Key Metrics Changes - For the full year 2025, revenue was $2.136 billion, exceeding the high end of guidance, while adjusted EBITDA was $214 million, reflecting year-over-year growth of 5.6% [4][22] - Fourth quarter revenue was $570 million, a slight increase from $567 million in the prior year, with adjusted EBITDA at $62 million, or 10.9% of revenue, compared to $51 million, or 9% [20][21] - Free cash flow was positive at $83 million in 2025, a significant improvement from a negative $104 million in the prior year [32] Business Line Data and Key Metrics Changes - In the Engage segment, fourth quarter revenue decreased 1.8% to $444 million, but operating income increased by 62% to $36 million, or 8.1% of revenue [23][24] - The Digital segment saw fourth quarter revenue increase by 9.2% to $125 million, driven by product resale, although operating income decreased to $12 million, or 9.4% of revenue [26][27] - For the full year, Engage revenue was $1.67 billion, a decrease of 4.6%, while Digital revenue was $469 million, an increase of 2.2% [25][28] Market Data and Key Metrics Changes - The company noted a significant shift in the market towards AI-enabled solutions, with expectations of near 100% AI adoption among current clients by the end of 2026 [6][19] - The overall market for customer experience (CX) services is estimated at $400 billion, with a growing demand for end-to-end transformative solutions [7][72] Company Strategy and Development Direction - The company is focused on profitable and sustainable growth, emphasizing the integration of AI into its services and expanding its role as a strategic partner for clients [10][18] - There is a deliberate strategy to rationalize underperforming contracts to secure a healthier client portfolio and superior margins [14][25] - The company aims to deepen technology partnerships and invest in specialized talent to enhance its service offerings [18][19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the current macro environment and the AI landscape, emphasizing the need for effective execution of AI solutions [7][8] - The company expects revenue declines in 2026, particularly in the Engage and Digital segments, but anticipates continued growth in adjusted EBITDA and operating income [34][39] - Management remains confident in the long-term growth potential of the business, despite short-term revenue headwinds [39] Other Important Information - A non-cash goodwill impairment charge of $193 million was recorded due to a decline in market capitalization, but it does not impact the company's operational capabilities [30][31] - The company ended 2025 with a net leverage ratio of 3.58x, a decrease from 3.99x in the prior year, reflecting improved cash flow generation and reduced borrowings [33] Q&A Session Summary Question: AI adoption and ongoing work with customers - Management discussed the goal of achieving nearly 100% AI adoption among clients by the end of 2026, focusing on enabling associates and automating low-value transactions [43][46] Question: Revenue mix shift between project-based and recurring revenue - Management indicated a focus on achieving a 50% recurring revenue model in the Digital segment, with an expectation of more technology integration in the Engage business over time [50][53] Question: Impact of offshore mix shift on onshore revenue - Management clarified that a significant portion of onshore revenue is tied to regulated sectors, limiting the ability to shift to offshore operations [60][62] Question: Defending against clients pushing for AI efficiency savings - Management noted that currently, clients are not pressuring for cost savings from AI efficiencies, as there is a strong demand for advisory services on AI integration [66][68] Question: Benefits from client consolidation - Management expressed confidence that client consolidation will accelerate, as companies seek fewer partners with deeper technological capabilities [78][80]