SPS Commerce (NASDAQ:SPSC) Stock, Quote.Headers.trade-ideas

SPS Commerce

SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.

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U.S. stocks traded mixed, with the Nasdaq Composite gaining around 100 points on Friday.

Shares of  SPS Commerce, Inc. (NASDAQ: SPSC) rose sharply during Friday’s session following upbeat results.

SPS Commerce Posts Upbeat Results, Joins Masonite International, Impinj And Other Big Stocks Moving Higher On Friday

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U.S. stocks closed lower on Friday. All three major indices recorded losses last week, with the Dow Jones losing 1.96%, notching its worst weekly performance since March.

This Analyst With 83% Accuracy Rate Sees Around 7% Upside In Alphabet - Here Are 5 Stock Picks For Last Week From Wall Street&#39;s Most Accurate Analysts

SPS Commerce Inc

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) has outperformed the market over the past 15 years by 13.26% on an annualized basis producing an average annual return of 25.11%. Currently, SPS Commerce has a market capitalization of $7.31 billion. 
Buying $1000 In SPSC: If an investor had bought $1000 of SPSC stock 15 years ago, it would be worth $28,791.18 today based on a price of $195.05 for SPSC at the time of writing.
<h3>SPS Commerce's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1727110818_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $1000 Invested In SPS Commerce 15 Years Ago Would Be Worth Today

In a recent exclusive interview with Benzinga, Paul Eitelman, chief investment strategist for North America at Russell Investments, provided insights into the sectors of small-cap stocks that stand out <a href="https://www.benzinga.com/trading-ideas/small-cap-analysis">amidst economic uncertainty</a>.
While small-caps as a whole face some macroeconomic risks, Eitelman highlights several specific sectors that could offer substantial opportunities.
<h1 class="wp-block-heading">Where Small-Cap Managers Are Finding Opportunities</h1>
Eitelman notes that &#8220;dedicated small-cap managers are finding opportunities to tilt their portfolio strategies toward banks, technology and select highly indebted companies that are likely to benefit from lower interest rates going forward.&#8221; These sectors are positioned to thrive, especially as interest rates begin to decline.
Technology continues to dominate market discussions, and small-cap tech companies could be key beneficiaries of economic shifts, particularly those aligned with innovative growth areas like AI and data services.
The Russell 2000 index is one of the more popular indices tracking small cap U.S. equity. ETFs that track this index include the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>), the Vanguard Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VTWO#NYSE">VTWO</a>) and the Avantis US Small Cap Equity ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AVSC#NYSE">AVSC</a>). The Invesco S&amp;P SmallCap Information Technology ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSCT#NYSE">PSCT</a>) is a lesser-known but technology-focused ETF tracking small cap companies. The top 3 holdings of this ETF are Fabrinet (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FN#NYSE">FN</a>), SPS Commerce, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) and Badger Meter Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BMI#NYSE">BMI</a>).
Read Also: <a href="https://www.benzinga.com/news/24/08/40423157/small-cap-ai-stocks-on-the-rise-3-hidden-gems-you-shouldnt-miss">Small-Cap AI Stocks On The Rise: 3 Hidden Gems You Shouldn&#8217;t Miss</a>
<h1 class="wp-block-heading">Stock Selection: Primary Driver Of Risk, Return</h1>
However, Eitelman cautions that given the high macroeconomic uncertainty, broad sector bets are risky. He recommends a more refined approach: "Our preference into high macro uncertainty is to target only modest sector tilts and let stock selection shine as the primary driver of risk and return."
This focus on stock selection over aggressive sector rotation makes sense in an environment where not all companies are equally positioned to navigate fluctuating interest rates or economic slowdowns. 
Banks, for example, are likely to benefit from a soft landing scenario, while indebted companies could see relief as rates fall. Tech remains a favorite sector due to its long-term growth prospects, even amid near-term uncertainty.
Overall, Eitelman's strategy emphasizes precision and caution, advising investors to prioritize stock-picking and avoid broad over-exposure in the small-cap space.
Read Next: 
<ul>
<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/09/40749609/this-small-cap-top-pick-is-positioned-for-strong-gains-jpmorgan-sees-over-50-upside">This Small Cap &#8216;Top Pick&#8217; Is Positioned For Strong Gains, JPMorgan Sees Over 50% Upside</a></li>
</ul>
Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference on Oct. 9-10, 2024</a>, at the Chicago Marriott Downtown Magnificent Mile.
Get exclusive access to CEO presentations, 1:1 meetings with investors, and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur, or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders.
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SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) has outperformed the market over the past 10 years by 10.48% on an annualized basis producing an average annual return of 21.11%. Currently, SPS Commerce has a market capitalization of $7.07 billion. 
Buying $100 In SPSC: If an investor had bought $100 of SPSC stock 10 years ago, it would be worth $684.82 today based on a price of $188.60 for SPSC at the time of writing.
<h3>SPS Commerce's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1725571816_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$100 Invested In This Stock 10 Years Ago Would Be Worth $700 Today

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) has outperformed the market over the past 10 years by 10.55% on an annualized basis producing an average annual return of 21.31%. Currently, SPS Commerce has a market capitalization of $7.37 billion. 
Buying $1000 In SPSC: If an investor had bought $1000 of SPSC stock 10 years ago, it would be worth $7,003.43 today based on a price of $196.50 for SPSC at the time of writing.
<h3>SPS Commerce's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1724081414_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

$1000 Invested In SPS Commerce 10 Years Ago Would Be Worth This Much Today

Disclosed in a recent SEC filing on August 13, Wehrwein, Director at SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>), made a noteworthy transaction involving the exercise of company stock options.
What Happened: In an insider options sale disclosed in a Form 4 filing on Tuesday with the <a href="https://www.sec.gov/Archives/edgar/data/0001092699/000143774924026426//Archives/edgar/data/1092699/000143774924026426/0001437749-24-026426-index.htm">U.S. Securities and Exchange Commission</a>, Wehrwein, Director at SPS Commerce, exercised stock options for 2,000 shares of SPSC. The transaction value amounted to $205,740.
Currently, SPS Commerce shares are trading down 0.0%, priced at $196.27 during Wednesday's morning. This values Wehrwein's 2,000 shares at $205,740.
<h3>Unveiling the Story Behind SPS Commerce</h3>
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.
<h3>SPS Commerce: Delving into Financials</h3>
Revenue Growth: Over the 3 months period, SPS Commerce showcased positive performance, achieving a revenue growth rate of 17.77% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.
Holistic Profitability Examination:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 66.13%, suggesting potential challenges in cost control and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): SPS Commerce's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.49.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 102.22, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: With a relatively high Price to Sales ratio of 12.66 as compared to the industry average, the stock might be considered overvalued based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio 59.8 is above the industry average, suggesting that the market values the company more highly for each unit of EBITDA. This could be attributed to factors such as strong growth prospects or superior operational efficiency.
</li>
</ul>
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
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<h3>Delving Into the Significance of Insider Transactions</h3>
Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Cracking Transaction Codes</h3>
Taking a closer look at transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001092699">Check Out The Full List Of SPS Commerce's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Engaging In Options Activity, Sven Wehrwein Exercises Options Valued At $205K In SPS Commerce

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Shares of stocks in the broader tech sector are trading lower amid a sell off due to US economy concerns.

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) has outperformed the market over the past 10 years by 11.13% on an annualized basis producing an average annual return of 21.91%. Currently, SPS Commerce has a market capitalization of $7.50 billion. 
Buying $1000 In SPSC: If an investor had bought $1000 of SPSC stock 10 years ago, it would be worth $7,236.56 today based on a price of $202.30 for SPSC at the time of writing.
<h3>SPS Commerce's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1722616313_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Needham analyst Scott Berg reiterates SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and maintains $230 price target.

Reiteration

Needham Reiterates Buy on SPS Commerce, Maintains $230 Price Target

SupplyPike is a first of its kind SaaS solution that provides ongoing monitoring and management of invoice deductions to recover lost revenue along with the information needed to improve processes and eliminate deductions in the future.
For the&nbsp;third quarter&nbsp;of 2024, SPS Commerce anticipates the acquisition will add approximately&nbsp;$3.0 million&nbsp;in revenue and expects Adjusted EBITDA to be negatively impacted by approximately&nbsp;$750,000.
For fiscal year 2024, the company expects the acquisition will add approximately&nbsp;$8.0 million&nbsp;in revenue and expects Adjusted EBITDA to be negatively impacted by approximately&nbsp;$1.5 million.
For fiscal year 2025, the company expects the acquisition will add approximately&nbsp;$25.0 million&nbsp;in revenue and breakeven in Adjusted EBITDA.

SPS Commerce Acquires SupplyPike For Approximately $119M Cash, Net Of Cash Acquired, And $87M In SPS Commerce Stock

Northland Capital Markets analyst Nehal Chokshi downgrades SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) from Outperform to Market Perform and raises the price target from $205 to $209.

Downgrades

Northland Capital Markets Downgrades SPS Commerce to Market Perform, Raises Price Target to $209

Craig-Hallum analyst Jeff Van Sinderen maintains SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and raises the price target from $210 to $230.

Craig-Hallum Maintains Buy on SPS Commerce, Raises Price Target to $230

Stifel analyst Tom Roderick maintains SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and raises the price target from $200 to $225.

Stifel Maintains Buy on SPS Commerce, Raises Price Target to $225

During the last three months, 6 analysts shared their evaluations of SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>), revealing diverse outlooks from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
<table>
<thead>
<tr>
<th></th>
<th style="text-align: right;">Bullish</th>
<th style="text-align: right;">Somewhat Bullish</th>
<th style="text-align: right;">Indifferent</th>
<th style="text-align: right;">Somewhat Bearish</th>
<th style="text-align: right;">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td style="text-align: right;">5</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td style="text-align: right;">2</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">1</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td style="text-align: right;">3</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
<td style="text-align: right;">0</td>
</tr>
</tbody>
</table>
Insights from analysts' 12-month price targets are revealed, presenting an average target of $217.17, a high estimate of $240.00, and a low estimate of $186.00. This upward trend is evident, with the current average reflecting a 5.83% increase from the previous average price target of $205.20.
<img src="https://www.benzinga.com/files/images/story/2024/1722006101_0.png" alt="price target chart" />
<h2>Understanding Analyst Ratings: A Comprehensive Breakdown</h2>
A clear picture of SPS Commerce's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
<table>
<thead>
<tr>
<th>Analyst</th>
<th>Analyst Firm</th>
<th>Action Taken</th>
<th>Rating</th>
<th>Current Price Target</th>
<th>Prior Price Target</th>
</tr>
</thead>
<tbody>
<tr>
<td>Gil Luria</td>
<td>DA Davidson</td>
<td>Raises</td>
<td>Buy</td>
<td>$240.00</td>
<td>$225.00</td>
</tr>
<tr>
<td>Joe Vruwink</td>
<td>Baird</td>
<td>Raises</td>
<td>Neutral</td>
<td>$186.00</td>
<td>$178.00</td>
</tr>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Raises</td>
<td>Buy</td>
<td>$230.00</td>
<td>$205.00</td>
</tr>
<tr>
<td>Lachlan Brown</td>
<td>Redburn Atlantic</td>
<td>Announces</td>
<td>Buy</td>
<td>$220.00</td>
<td>-</td>
</tr>
<tr>
<td>Scott Berg</td>
<td>Needham</td>
<td>Maintains</td>
<td>Buy</td>
<td>$205.00</td>
<td>$205.00</td>
</tr>
<tr>
<td>George Kurosawa</td>
<td>Citigroup</td>
<td>Raises</td>
<td>Buy</td>
<td>$222.00</td>
<td>$213.00</td>
</tr>
</tbody>
</table>
<h3>Key Insights:</h3>
<ul>
<li>Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to SPS Commerce. This information offers a snapshot of how analysts perceive the current state of the company.</li>
<li>Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of SPS Commerce compared to the broader market.</li>
<li>Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of SPS Commerce's stock. This comparison reveals trends in analysts' expectations over time.</li>
</ul>
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of SPS Commerce's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
<a href="https://www.benzinga.com/quote/SPSC/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on SPS Commerce analyst ratings.</a>
<h2>All You Need to Know About SPS Commerce</h2>
SPS Commerce Inc is a provider of cloud-based supply chain management services for retailers, grocers, distributors, suppliers, and logistics firms to increase supply chain performance, optimize inventory levels and sell-through, reduce operational costs, improve order visibility, and satisfy consumer demands for a seamless omnichannel experience. Its solutions are delivered through the SPS Commerce platform and provide integrations and retail performance analytics to its customers. Its products are; Fulfillment, Analytics, and Other products like Assortment and Community also it provides one-time services such as professional services and testing and certification. The group derives revenue from recurring monthly fees and set-up fees.
<h3>SPS Commerce's Economic Impact: An Analysis</h3>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Growth: SPS Commerce's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 18.84%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: SPS Commerce's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 12.04% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): SPS Commerce's ROE excels beyond industry benchmarks, reaching 2.67%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 2.16%, the company showcases effective utilization of assets.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.02.
<h2>Analyst Ratings: What Are They?</h2>
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Navigating 6 Analyst Ratings For SPS Commerce

DA Davidson analyst Gil Luria maintains SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and raises the price target from $225 to $240.

DA Davidson Maintains Buy on SPS Commerce, Raises Price Target to $240

Baird analyst Joe Vruwink maintains SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Neutral and raises the price target from $178 to $186.

Baird Maintains Neutral on SPS Commerce, Raises Price Target to $186

Needham analyst Scott Berg maintains SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) with a Buy and raises the price target from $205 to $230.

Needham Maintains Buy on SPS Commerce, Raises Price Target to $230

Guidance

SPS Commerce Sees Q3 Adj. EPS $0.83-$0.84 vs $0.83 Est., Revenue $157.6M-$158.6M vs $157.03M Est.; Sees FY24 Adj. EPS $3.63-$3.66 vs $3.33 Est., Revenue $624.2M-$626.0M vs $623.48M Est.

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) reported quarterly earnings of $0.80 per share which beat the analyst consensus estimate of $0.77 by 3.9 percent. This is a 15.94 percent increase over earnings of $0.69 per share from the same period last year. The company reported quarterly sales of $153.596 million which beat the analyst consensus estimate of $151.920 million by 1.10 percent. This is a 17.77 percent increase over sales of $130.416 million the same period last year.

Earnings

Earnings Beats

SPS Commerce Q2 2024 Adj EPS $0.80 Beats $0.77 Estimate, Sales $153.596M Beat $151.920M Estimate

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) has outperformed the market over the past 10 years by 11.3% on an annualized basis producing an average annual return of 22.21%. Currently, SPS Commerce has a market capitalization of $7.63 billion. 
Buying $1000 In SPSC: If an investor had bought $1000 of SPSC stock 10 years ago, it would be worth $7,574.48 today based on a price of $205.95 for SPSC at the time of writing.
<h3>SPS Commerce's Performance Over Last 10 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721232016_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Here's How Much $1000 Invested In SPS Commerce 10 Years Ago Would Be Worth Today

SPS Commerce (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SPSC#NASDAQ">SPSC</a>) has outperformed the market over the past 15 years by 12.09% on an annualized basis producing an average annual return of 25.03%. Currently, SPS Commerce has a market capitalization of $7.04 billion. 
Buying $100 In SPSC: If an investor had bought $100 of SPSC stock 15 years ago, it would be worth $2,852.65 today based on a price of $190.10 for SPSC at the time of writing.
<h3>SPS Commerce's Performance Over Last 15 Years</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1719936021_0.png" alt="comp_fig" />
Finally -- what's the point of all this? The key insight to take from this article is to note how much of a difference compounded returns can make in your cash growth over a period of time.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

If You Invested $100 In This Stock 15 Years Ago, You Would Have $2,900 Today

D.A. Davidson analyst Gil Luria reiterated a Buy rating on SPS Commerce (SPSC – Research Report) today. The company's shares opened today at $210.8...

SPS Commerce (SPSC) Receives a Buy from D.A. Davidson

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Adweek recently published sponsored content on digital tracking and cookies. If you follow <a href="https://investorplace.com/industries/technology/">tech stocks</a> and the advertising business, there aren&rsquo;t many other topics that garner so much interest.&nbsp;



Written by Epsilon VP of Product Management Tyler McDaniel, the <a href="https://www.adweek.com/sponsored/if-you-want-to-future-proof-your-brand-you-gotta-drop-the-cookie/">headline said it all</a>: If You Want to Future-Proof Your Brand, You Gotta Drop the Cookie.



Epsilon, if you&rsquo;re unfamiliar, is a <a href="https://www.epsilon.com/us/about-us">marketing and advertising solutions</a> provider. It helps brands use data and technology to get closer to their customers. It&rsquo;s <a href="https://www.epsilon.com/us/about-us/pressroom/publicis-groupe-finalizes-the-acquisition-of-epsilon#:~:text=Publicis%20Groupe%20(Euronext%20Paris%3A%20FR0000130577,8.2%20times%20Adjusted%20EBITDA%20multiple.">owned by Paris-based</a> Publicis Groupe (OTCMKTS:<a href="https://investorplace.com/stock-quotes/pubgy-stock-quote/">PUBGY</a>), an advertising and public relations conglomerate.&nbsp;



Essentially, McDaniel lays out the reasons why first-party data is so much better than third-party cookies.




&ldquo;Marketers will continue to struggle against third-party identifier deprecation as the digital world changes. But first-party data strategies will allow brands to take back the power of their marketing and use data as a tool to better connect with consumers,&rdquo; McDaniel wrote.&nbsp;




Who are the digital tracking tech stocks to buy to ride the move to first-party data? Here are three possibilities.&nbsp;



<h2>HubSpot (HUBS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/hubs1600-300x169.jpg" alt="Hubspot (HUBS) logo displayed on a mobile phone"><div>Source: rafapress / Shutterstock.com</div></div>HubSpot (NYSE:<a href="https://investorplace.com/stock-quotes/hubs-stock-quote/">HUBS</a>) stock is not cheap. It trades at <a href="https://www.morningstar.com/stocks/xnys/hubs/valuation">57x cash flow</a>. However, relative to its five-year average of 117x cash flow, it&rsquo;s fair value, historically speaking.



As the company&rsquo;s investor relations site states, its <a href="https://ir.hubspot.com/">software and services</a> are meant to help its customers &mdash; over <a href="https://knowledge.hubspot.com/hubfs/Quarterly%20Investor%20Presentation%20Q124.pdf">217,000 in more than 135 countries</a> &mdash; attract and retain more customers. That&rsquo;s exactly what martech is.&nbsp;



The company is focused on helping SMBs (small and medium-sized businesses) connect all the technology required to successfully grow a business. It <a href="https://www.hubspot.com/our-story">started in 2006</a> with a <a href="https://www.linkedin.com/pulse/hubspot-just-another-marketing-automation-tool-heres-sheth-docsumo/">marketing hub</a> that combined traditional inbound marketing with digital marketing tools to attract new customers.&nbsp;



Over the next 18 years it added a number of different products, or hubs, ultimately creating a smart CRM (customer relationship management) platform that unifies all of its various products in one place.



It estimates that its TAM (total addressable market) will grow to $77 billion by 2028 from $51 billion in 2023. It has captured less than 10% of this TAM. It will use AI to grow its share of this significant market.&nbsp;



It&rsquo;s come a long way. In Q1 2017, it had revenue of $82 million. In Q1 2024, it was $617 million. It grew revenue 23% year-over-year in the first quarter by growing its customer base by 22%.&nbsp;



<h2>Applovin (APP)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/02/applovin-app-1600-300x169.jpg" alt="AppLovin (APP) logo and page displayed on phone and computer screen"><div>Source: shutterstock.com/T. Schneider</div></div>Applovin (NASDAQ:<a href="https://investorplace.com/stock-quotes/app-stock-quote/">APP</a>) stock is up nearly 100% in 2024. That&rsquo;s the good news. The bad news is that it traded above $110 in 2021, about 42% higher than where it currently trades.&nbsp;



Based in Silicon Valley, the company&rsquo;s software platform uses <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0001751008/fdffbf95-8771-4628-97f1-dd79acda2fa2.pdf">AI-powered solutions</a> to help its customers &ldquo;reach, monetize and grow their global audience.&rdquo;&nbsp;



It has two operating segments: Software Platform (<a href="https://s27.q4cdn.com/966411597/files/doc_financials/2024/q1/q1/1Q24-AppLovin-Shareholder-Letter.pdf">64% of revenue</a>) and Apps (36%). In Q1 2024, the former&rsquo;s revenue grew 91% to $678 million while the latter&rsquo;s revenue was up 5% to $380 million. Overall, its adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $549 million, 101% higher YOY, with a healthy 52% EBITDA margin.&nbsp;



For 2024, it expects revenue of $1.07 billion at the midpoint of its guidance, $560 million adjusted EBITDA, and an adjusted EBITDA margin of 52.5%.&nbsp;



Much of the company&rsquo;s growth has to do with AXON, the company&rsquo;s AI-powered advertising engine, which matches advertiser demand with publisher supply through hyperfast online auctions. It is martech at its finest.&nbsp;&nbsp;



Sixteen out of the 23 analysts that cover its stock rate it a Buy with a <a href="https://www.marketwatch.com/investing/stock/app/analystestimates">target price of $99</a>, well above where it&rsquo;s currently trading.&nbsp;&nbsp;&nbsp;&nbsp;



<h2>SPS Commerce (SPSC)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2019/08/cloud1600-300x169.jpg" alt="an image of a cloud imprinted on a circuit board lit up by blue circuit lights. cheap cloud stocks"><div>Source: Shutterstock</div></div>While it might not be martech in the traditional sense, SPS Commerce&rsquo;s (NASDAQ:<a href="https://investorplace.com/stock-quotes/spsc-stock-quote/">SPSC</a>) cloud-based supply chain solutions enable <a href="https://www.spscommerce.com/about/">more than 120,000</a> retail supply chain partners to communicate across the various channels that make for successful omnichannel retail.&nbsp;



Getting and keeping customers is what martech is about. SPS Commerce&rsquo;s cloud-based smart CRM platform, combined with its various Hubs, is absolutely focused on the same thing.&nbsp;



Although SPSC stock has underperformed the S&amp;P 500 by 227 basis points in 2024, its five-year return of 262% smokes the index. I don&rsquo;t see why it can&rsquo;t outperform over the next five years.



The company reported <a href="https://www.investing.com/news/sps-commerce-earnings-beat-by-003-revenue-topped-estimates-3537656">Q2 2024 results</a> July 25 after the markets closed. Its earnings per share were 80 cents, three cents higher than Wall Street&rsquo;s estimate. On the top line, it generated $153.6 million in revenue, about $1.7 million higher than the consensus.&nbsp;



For 2024, it is forecasting EPS of at least $3.63, 30 cents higher than analyst expectations, with $625 million revenue at the midpoint of its guidance, $1.2 million higher.&nbsp;



In its Q2 2024 press release, the company said the quarter is the 94th consecutive quarter of growth. It doesn&rsquo;t get much better.&nbsp; &nbsp; &nbsp;



On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/"> Publishing Guidelines</a>.



On the&nbsp;date of publication, the responsible editor did not have (either&nbsp;directly or indirectly) any positions in the securities mentioned in this article.
<div>Will Ashworth has written about investments full-time since 2008. Publications where he&rsquo;s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/07/3-tech-stocks-poised-to-thrive-in-the-post-digital-tracking-era/">3 Tech Stocks Poised to Thrive in the Post-Digital-Tracking Era </a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

3 Tech Stocks Poised to Thrive in the Post-Digital-Tracking Era

SPS Commerce Beats Q2 Estimates, But Revenue Growth Is A Concern

SPS Commerce (SPSC) has shared an announcement. On July 31, 2024, SPS Commerce, Inc. completed the acquisition of SupplyPike, Inc. for roughly $206...

SPS Commerce Expands with Acquisition of SupplyPike

William Blair analyst Dylan Becker has maintained their neutral stance on SPSC stock, giving a Hold rating on July 29. Dylan Becker has given his H...

SPS Commerce Acquisition of SupplyPike: Strategic Move with Short-Term Financial Challenges

Analyst Scott Berg from Needham maintained a Buy rating on SPS Commerce (SPSC – Research Report) and increased the price target to $230.00 from $20...

Buy Rating Affirmed: SPS Commerce's Strategic Acquisition of SupplyPike Promises Growth and Market Expansion

SPS Commerce files for secondary offering of 404,587 shares

Baird Q2 2024 Small/Mid Cap Growth Equity Fund Commentary

SPS Commerce (SPSC – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Gil Luria from D.A. Dav...

Buy Rating Affirmed for SPS Commerce on Consistent ARR Growth and Successful M&A Strategy

Loop Capital Markets analyst Mark Schappel maintained a Buy rating on SPS Commerce (SPSC – Research Report) today and set a price target of $230.00...

SPS Commerce (SPSC) Gets a Buy from Loop Capital Markets

APPF

CACI

CNMD

DAVA

DECK

GKOS

GLBE

HUBS

INSP

ITCI

LGIH

MANH

MSTR

NBIX

PCTY

PODD

POOL

PRCT

PUBGY

RGEN

RXST

SMCI

TREX

VERX

XPEL

ZBRA

Press Releases

SPS Commerce to Present at the Morgan Stanley Technology, Media & Telecom Conference

SPS Commerce Announces Purchase of Vision33's SAP Business One (SAP B1) SPS Integration Technology

SPS Commerce Announces Date of First Quarter 2024 Financial Results

SPS Commerce Reports First Quarter 2024 Financial Results

SPS Commerce Acquires Traverse Systems

SPS Commerce to Present at the William Blair 44th Annual Growth Stock Conference

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