EVH Question

Marty,

Have you seen EVH?  Had an impressive beat and raise on Thursday.  Trades at less than 2x sales, and has been trading sideways since the fall of 2021.  I always take note of the companies beating and raising and first bought SMCI in 2022 because of thier beat and raise quarter.  It's in the software group and i never see software stocks trading at this low of price to sales ratio.   Plus they are forecasting over 60 percent growth for 2025.  I took a positon friday and will keep an eye on it.  RS not there as it's been moving sideways for a long time.  Your insight would be appreciated.

Todd

Todd,

EVH has consolidated in a base for 42 weeks, and formed a cup with handle pattern with a buy point of $33.71. The problem with EVH is that it continues to trade sideways, and it needs to break out of that base and  power higher. It did move in 2020/2021 from $5 to $34 and has shown the ability to rip higher in the past. The longer the base the higher in space!

You are right on the money in that this company is extremely inexpensive much like SMCI was in 2022/2023. The company has delivered at least seven quarters in a row of 40% revenue growth. This stock is one to watch, and is likely going to test your patience.

Regards,

Marty