Amdocs (DOX) shares edged up slightly after a week of moderate moves, catching the eye of investors tracking sector sentiment. The company’s recent 1% daily gain and 5% climb over the past month add some interest to its performance.
See our latest analysis for Amdocs.
While Amdocs has seen a modest uptick recently, it is worth noting that momentum has cooled compared to earlier in the year. The company’s latest share price of $84.57 puts its 1-year total shareholder return at -6%, suggesting investors remain cautious, even as the 5-year total shareholder return stands at a solid 46%. It appears that the stock’s long-term gains are intact, though sentiment has softened in the short run.
If you’re interested in broadening your search, now might be the perfect moment to discover fast growing stocks with high insider ownership.
With shares lagging over the past year yet trading at a meaningful discount to analyst targets, investors may wonder if Amdocs is undervalued at these levels, or if future growth is already factored into the price.
Amdocs recently closed at $84.57, while the most widely followed narrative pegs its fair value closer to $104.00. This suggests a notable gap, pointing to market skepticism or a disconnect with analyst expectations.
The accelerating adoption of cloud, automation, and AI/ML across telecom and media sectors is driving a multi-year wave of IT stack modernization. Amdocs is winning new large-scale modernization and migration deals in cloud, generative AI, and data services, which is expanding its total addressable market and supporting sustained topline revenue growth.
Read the complete narrative.
Want to know what propels this bullish case? The secret lies in aggressive profit margin expansion and growth that bucks the trend for most IT peers. Find out the ambitious assumptions underwriting this valuation and why some think Amdocs could shatter expectations.
Result: Fair Value of $104.00 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, persistent macro uncertainty and heavy reliance on a handful of large telecom clients could pose challenges to Amdocs’s ability to deliver its anticipated growth.
Find out about the key risks to this Amdocs narrative.
If you think a different story is unfolding, or want to dig into the numbers yourself, you can craft your own view in just a few minutes. Do it your way.
A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Amdocs.