Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the Stocks to Buy with Exponential Growth Heading into 2026. On October 16, analyst Michael Infante from Morgan Stanley maintained a “Buy” rating on the company’s stock and has a $27.00 price target. The analyst’s rating is backed by a combination of factors demonstrating that Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is well-placed for growth. As per the analyst, the company is expected to witness a rise in organic net new ARR as large deals ...

Core Insights - Resources Connection, Inc. (RGP) operates in the professional services sector, specifically within the Zacks Staffing Firms industry, providing consulting services in finance, accounting, and human resources [1] Financial Performance - RGP reported an earnings per share (EPS) of -$0.07 for the quarter ending in August 2025, which was better than the estimated EPS of -$0.15, indicating a significant improvement from the previous quarter [2][6] - The company's revenue for the same quarter was approximately $120.23 million, slightly exceeding the estimated revenue of $119.97 million, although it represents a decrease from $136.93 million reported in the same period last year [3][6] - RGP has consistently exceeded consensus revenue estimates in each of the last four quarters, with the latest revenue exceeding the Zacks Consensus Estimate by 1.19% [3] Valuation Metrics - RGP has a negative price-to-earnings (P/E) ratio of -0.85, while maintaining a price-to-sales ratio of 0.30, indicating that investors are paying 30 cents for every dollar of sales [4][6] - The enterprise value to sales ratio is 0.19, and the enterprise value to operating cash flow ratio is 5.51, reflecting the company's valuation relative to its revenue and operating cash flow [4] Financial Health - The company has a debt-to-equity ratio of 0.12, indicating a relatively low level of debt compared to equity, and a current ratio of 2.70, suggesting a strong ability to cover short-term liabilities with short-term assets [5][6] - RGP's financial metrics demonstrate resilience and potential for future growth despite challenges [5]

Market Overview - Most assets, including stocks and Treasuries, are currently stagnant, with gold, silver, crude oil, and Bitcoin trading slightly lower, while the dollar shows a minor increase [1] - Investors are awaiting the Federal Reserve's interest rate decision, with futures markets indicating a 25-basis point cut is fully priced in, and a 6% chance of a 50-basis point cut [2] Federal Reserve Meeting - The current Federal Reserve meeting is noted as unusual due to political influences, with President Trump advocating for a significant rate cut [3] - Fed Chairman Jay Powell and the committee are shifting focus from tariff-driven inflation to labor market weaknesses [4] Mortgage Rates and Refinancing - The 30-year mortgage rates have decreased, recently falling below 6.4%, which has led to a surge in refinancing applications, reaching the highest level since early 2022 according to the Mortgage Bankers Association [4] Company News: Workday Inc. - Workday Inc. shares are experiencing a surge following an activist investment from Elliott Management, which has acquired a $2 billion stake and aims to enhance the company's value [6] - Workday announced a $5 billion stock buyback plan over the next two years and disclosed the acquisition of AI-focused firm Sana for $1.1 billion [6]

Core Insights - TimesSquare Capital Management reported a gross return of 11.28% and a net return of 11.02% for its "U.S. Small Cap Growth Strategy" in Q2 2025, underperforming the Russell 2000 Growth Index which returned 11.97% [1] - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is highlighted as a key stock, with a one-month return of 3.43% but a 52-week decline of 17.12%, closing at $19.90 per share with a market cap of $6.48 billion [2][4] Company Performance - Clearwater Analytics reported revenue of $181.9 million in Q2 2025, marking a 70% year-over-year increase [4] - The company has made acquisitions of Enfusion, Beacon, and Bistro assets to enhance its product offerings, although this has led to a short-term dilutive impact on its financial profile, contributing to an 18% drop in share value [3] Investment Sentiment - Clearwater Analytics is not among the top 30 most popular stocks among hedge funds, with 51 hedge fund portfolios holding the stock at the end of Q2 2025, up from 41 in the previous quarter [4] - Analysts suggest that while Clearwater Analytics has potential, certain AI stocks may offer greater upside potential with less downside risk [4]