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Best IT Services stocks to own for 2024 – Guggenheim

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Best IT Services stocks to own for 2024 – Guggenheim
© Reuters. Best IT Services stocks to own for 2024 – Guggenheim

IT Services providers have been experiencing low demand amid macroeconomic uncertainty, with not many stocks in the sector offering near-term upside to consensus figures. Against this backdrop, analysts at Guggenheim shared in a note this week a list of the Best IT Services stocks to own for 2024.

They noted that the soft near-term demand is a result of “deprioritized discretionary spend,” adding that the reduced spending is evident “particularly across transformation-oriented discretionary agendas as enterprises shifted budget priorities toward outsourcing-reliant cost optimization.”

Despite this, Guggenheim remains constructive on the medium-term opportunities, expecting cyclical headwinds to clear and AI-driven technology to start opening up new areas of growth.

“We believe we are in the early innings of an AI-driven technology cycle. IT Services providers are often “tip of spear” for innovation, as those indexed to consulting capabilities help plan, roadmap, develop, and implement new technology for enterprise customers,” they said.

The analysts also expect acquisitions to be key during this phase, and are most optimistic about stocks offering growth upside and exposure to discretionary spend.

The best IT Services stocks to own according to Guggenheim are Accenture (NYSE:), Andava Ltd. (DAVA), EPAM Systems (EPAM) and Globant (GLOB). Each of these has a Buy rating at the firm, while DAVA is additionally a ‘Best Idea.’

“[W]e expect these companies to better capture secularly-driven demand recovery. Each is also adept at systematic tuck-in acquisitions, continuously pivoting capability sets to meet demand,” said the analysts.

Here’s why these stocks are Buys at Guggenheim.

Accenture (price target $425): “We see ACN as among the best-positioned to capture secular demand themes given its end-to-end service offerings, investments ahead of demand trends, and durable capital allocation framework balancing acquisitions and shareholder return.”

Andava (price target $60): The stock “presents a buying opportunity in a high-quality digital pure-play well-positioned to benefit from return of discretionary spend.”

EPAM (price target $350): “Despite near-term uncertainty, we believe EPAM is among the best-positioned to benefit from demand recovery given its focus on digital enablement.”

Globant (price target $250): “A Latin American-based digital pure-play showing resilience amidst macroeconomic uncertainty, GLOB has demonstrated the strengths and differentiation of its customer relationships and Studio model, which we believe will continue to underpin double-digit growth in the medium term.”

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US Labor Department corrects productivity data

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Insights from Token2049: How crypto wealth is made

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Oak Valley Community Bank Named One of Central Valley’s Best Places to Work

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OAKDALE, Calif., April 26, 2024 (GLOBE NEWSWIRE) — Oak Valley Community Bank, a wholly-owned subsidiary of Oak Valley Bancorp (NASDAQ: OVLY) is pleased to announce that it was named by Best Companies Group as one of 2024 Best Places to Work: Central Valley. At the same time, OVCB was recognized by Opportunity Stanislaus for Growing the Economy by increasing their workforce by 10% or more throughout 2023.

We are honored to be acknowledged for our growth and named one of the Best Places to Work in the Central Valley. This recognition is a testament to our commitment to fostering a positive and supportive workplace environment and excellence in all that we do. Our success is built on our service culture, which is embraced by all members of our team. Our exceptional service is what distinguishes us. It’s not just about meeting expectations; it’s about exceeding them in ways that build lasting trust and loyalty. By delivering on this promise consistently, we create our own brand ambassadors “ who speak highly of the bank and refer colleagues and friends. We would like to take this opportunity to recognize our team. We are grateful for their loyalty and commitment to our customers, our communities, and each other, stated Chris Courtney, CEO.

Best Places to Work: Central Valley is a survey and recognition program dedicated to celebrating those employers locally who excel at creating quality jobs and environments where employees are happy to work. As a research-driven program from Best Companies Group, Best Places to Work examines a company’s practices, programs, and benefits and surveys employees for their perspective. All companies that participated in the 2024 Best Places to Work: Central Valley program receive an in-depth evaluation identifying strengths and weaknesses according to their employees. In turn, this report can be used in developing or enhancing employee retention and recruitment programs.

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We are honored to be recognized with this year’s Best Places to Work recipients; Automation Group; O’Dell (NYSE:) Engineering, Inc., Grimbleby Coleman Advisors & Accountants, Haggerty Construction, Inc., ITSolutions-Currie, One Digital, The Wonderful Company, and Community Hospice & Health Services.

Best Places to Work: Central Valley is brought to you by Opportunity Stanislaus. For more information on Best Places to Work: Central Valley visit www.bestplacestoworkcentralvalley.com.

About Opportunity Stanislaus Opportunity Stanislaus is a local economic development organization focused on improving the economic vitality of Stanislaus County. To do so, they help local entrepreneurs start and grow businesses and work to attract innovative companies to the county. For more information visit www.opportunitystanislaus.com.

About Oak Valley Community Bank OVCB offers a variety of loan and deposit products to individuals and small businesses. They currently operate through 18 conveniently located branches: Oakdale, Turlock, Stockton, Patterson, Ripon, Escalon, Manteca, Tracy, Sacramento, Roseville, two branches in Sonora, three branches in Modesto, and three branches in their Eastern Sierra Division, which includes Bridgeport, Mammoth Lakes, and Bishop. For more information visit www.ovcb.com.

Contact:Chris Courtney/Rick McCarty
Phone:(209) 848-BANK (2265)    
 Toll Free (866) 8447500
 www.ovcb.com
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