Nice’s NICE platform, Nice Actimize, recently introduced the market’s first AI-powered Fraud Investigations solution, offering comprehensive end-to-end fraud management from detection to investigation.
Designed to optimize fraud investigations post-detection, the solution helps financial institutions save time and reduce costs with its automated workflow and specialized fraud case management.
Leveraging advanced Generative AI, the system automates key processes, enhancing customer responsiveness and ensuring compliance with regulatory deadlines.
The solution integrates fraud prevention and investigation efforts to create an automated feedback loop that aids in preventing future fraud while also streamlining the claims management and reimbursement processes.
Nice Price and Consensus
Nice price-consensus-chart | Nice Quote
Will Strong Product Portfolio Aid NICE’s Customer Base?
NICE’s diverse portfolio, featuring solutions like Actimize, Evidencentral, CXone and Inform Elite, has been gaining popularity. Nice’s emphasis on its Actimize platform has been a key catalyst.
Further expanding its capabilities, NICE Actimize introduced SURVEIL-X Behavior in August. It is an AI-powered solution within its SURVEIL-X suite, enhancing financial firms’ ability to monitor and address employee conduct risks across multiple dimensions proactively.
The company’s diverse portfolio is also helping it gain new customers. Its partnerships with AT&T T and Microsoft have been a key catalyst.
NICE recently expanded its collaboration with AT&T to offer a unified incident capture and data analytics solution for NextGen 9-1-1 centers, showcasing it at APCO 2024.
Its expanding cloud offerings, mainly its CXone platform, are a bonus. During second-quarter 2024, it reported cloud revenues of $482 million, up 26% year over year.
NICE’s policy of frequently updating its portfolio has been a key catalyst as it aids in fending off competitors from other industry players like Five9 FIVN, Salesforce CRM and 8X8, who are also expanding their portfolio in the CX market.
In June, Five9 announced an enhanced collaboration with Salesforce, integrating AI-powered solutions to enhance customer experiences in contact centers through real-time agent guidance and conversation intelligence.
NICE’s Earnings Estimate Revisions Are Positive
Nice’s efforts to enhance its customer experience with its robust cloud solutions are expected to drive top-line growth.
For the third quarter of 2024, NICE projects non-GAAP revenues to be between $676 million and $686 million, calling for 13% year-over-year growth at the midpoint. Non-GAAP earnings are estimated in the $2.62-2.72 per share band, suggesting 18% year-over-year growth at the midpoint.
The Zacks Consensus Estimate for revenues is pegged at $682.67 million, indicating 13.52% growth year over year. The consensus mark for earnings is pegged at $2.68 per share, unchanged in the past 30 days.
Here’s What Investors Should do With NICE Stock
NICE shares have declined 14.3% in the year-to-date period against the Computer and Technology sector’s growth of 22.1%.
Nice has been suffering from the foreign exchange headwinds in the APAC market. The stiff competition has also hurt the company’s growth despite the strong pipeline of its solutions.
The forward 12-month Price/Sales ratio for Nice stands at 3.66, higher than its Zacks Internet - Software sector’s 2.69, reflecting a stretched valuation.
Nice currently carries Zacks Rank #3 (Hold), which suggests that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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