Endava (DAVA) is singled out by the publication this week as an attractive stock. Despite corporate spending on software and tech decelerating due to recession concerns, Endava is said to be well positioned in 2023.
The expectation for lower growth rates for Salesforce (CRM) and ServiceNow (NOW) has weighed on shares of London-based Endava (DAVA), with share down 39% over the last 52 weeks. However, Barron’s pointed out that companies are always looking to get more efficient by cutting costs and replacing old software with newer tech. In addition, Endava’s relatively small size is noted to allow it to work more closely with customers.
Endava has seen revenue grow at a 29% annual clip over the past three years and is forecast to see sales compound annually at a 28% pace to $1.44B over the next two years. That means shares currently trade with an attractive PEG ratio of under 1X.