) hit a 52-week high of $35.76 during yesterday's trading
session. However, the stock closed the session a notch lower at
$35.74. The average trading volume aggregated 7, 89,467
Despite its strong price appreciation, this Zacks Rank #3
(Hold) stock still has enough fundamentals that may further drive
it upward. The stock is currently trading at a forward P/E of
10.4x. Unisys remains bullish regarding strong long-term growth
from its Technology segment with new product offerings.
Unisys reported fourth-quarter 2013 net income of $117.4
million or $2.37 per share compared with $81.8 million or $1.67
per share in the year-earlier quarter. The strong year-over-year
performance was primarily attributable to an increase in revenues
in both of its operating segments and a decline in operating
Unisys is investing heavily on developing a team dedicated to
pursuing growth opportunities for application-managed services
both for its existing and new clients. Unisys has also been
restructuring its business to improve profitability. This
includes slashing jobs to reduce costs, selling non-core
businesses and revamping its sales strategy, while investing in a
few higher-growth areas such as outsourcing.
The company is currently concentrating on business
opportunities in fewer, more profitable markets in the
information technology (IT) marketplace. To drive future growth,
Unisys is focusing its resources and investments in four
targeted, high potential market areas, including security (IT
security and physical security); data center transformation and
outsourcing services; end-user outsourcing and support services;
and applications modernization and outsourcing services.
Over the last 7 days, earnings estimates revisions remained
static for 2014. Although there is a lacuna of estimate
revisions, we envision an uptrend for the stock backed by its
strong growth potential.
Other Stocks to Consider
Stocks that look promising and are worth a look now include
Barracuda Networks, Inc.
), each carrying a Zacks Rank #2 (Buy).
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UNISYS (UIS): Free Stock Analysis Report
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