BILL Surges 6% in a Month: Should You Buy, Hold or Sell the Stock?

Core Insights - BILL Holdings (BILL) shares have outperformed the Zacks Computer & Technology sector and its peer Intuit (INTU) over the past month, with a 5.7% increase compared to Intuit's 0.3% rise and a broader sector decline of 0.8% [1] Financial Performance - BILL registered a 16% year-over-year growth in revenues, with core revenues also rising 16% to $301 million, driven by customer acquisition and expanded payment offerings [2] - In the fourth quarter of fiscal 2024, BILL added 11,300 net new customers, with a retention rate of 83% for standalone customers, indicating strong customer loyalty [3] Product Development and Partnerships - BILL is enhancing its position in the financial technology landscape with a growing portfolio, including upgrades to its payment engine, mobile app, and new local transfer options for international payments [4] - The Spend and Expense solution saw a revenue growth of 26%, supported by a 28% increase in card payment volume, and added 1,300 net new businesses in the same quarter [5] - Partnerships with Regions Bank and Adyen are aimed at streamlining payments and enhancing cash-management processes for commercial clients [6] Future Outlook - For the first quarter of fiscal 2025, BILL expects revenues between $346 million and $351 million, indicating a year-over-year growth of 13-15% [8] - Non-GAAP earnings per share are projected to be between 48 cents and 51 cents, with the consensus mark for earnings declining 5.7% in the past 30 days to 49 cents [8] Valuation Concerns - BILL stock is considered to have a stretched valuation, with a forward 12-month Price/Sales ratio of 4.32X, higher than the sector's 3.12X, leading to a Zacks Rank of 3 (Hold) [9]