Advertisement
- United States
- /
- Professional Services
- /
- NasdaqGS:TASK
TaskUs, Inc.'s (NASDAQ:TASK) 25% Jump Shows Its Popularity With Investors
Despite an already strong run, TaskUs, Inc. (NASDAQ:TASK) shares have been powering on, with a gain of 25% in the last thirty days. The last 30 days bring the annual gain to a very sharp 33%.
After such a large jump in price, TaskUs may be sending very bearish signals at the moment with a price-to-earnings (or "P/E") ratio of 30x, since almost half of all companies in the United States have P/E ratios under 18x and even P/E's lower than 10x are not unusual. Although, it's not wise to just take the P/E at face value as there may be an explanation why it's so lofty.
Recent times have been pleasing for TaskUs as its earnings have risen in spite of the market's earnings going into reverse. It seems that many are expecting the company to continue defying the broader market adversity, which has increased investors’ willingness to pay up for the stock. If not, then existing shareholders might be a little nervous about the viability of the share price.
Check out our latest analysis for TaskUs
How Is TaskUs' Growth Trending?
The only time you'd be truly comfortable seeing a P/E as steep as TaskUs' is when the company's growth is on track to outshine the market decidedly.
Taking a look back first, we see that the company grew earnings per share by an impressive 33% last year. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. Therefore, it's fair to say that earnings growth has been inconsistent recently for the company.
Looking ahead now, EPS is anticipated to climb by 20% each year during the coming three years according to the ten analysts following the company. That's shaping up to be materially higher than the 10% each year growth forecast for the broader market.
In light of this, it's understandable that TaskUs' P/E sits above the majority of other companies. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
The Bottom Line On TaskUs' P/E
TaskUs' P/E is flying high just like its stock has during the last month. It's argued the price-to-earnings ratio is an inferior measure of value within certain industries, but it can be a powerful business sentiment indicator.
We've established that TaskUs maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. Right now shareholders are comfortable with the P/E as they are quite confident future earnings aren't under threat. It's hard to see the share price falling strongly in the near future under these circumstances.
The company's balance sheet is another key area for risk analysis. Our free balance sheet analysis for TaskUs with six simple checks will allow you to discover any risks that could be an issue.
Of course, you might also be able to find a better stock than TaskUs. So you may wish to see this free collection of other companies that have reasonable P/E ratios and have grown earnings strongly.
Valuation is complex, but we're here to simplify it.
Discover if TaskUs might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
Access Free AnalysisHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
About NasdaqGS:TASK
TaskUs
Provides outsourced digital services for companies in Philippines, the United States, India, and internationally.
Very undervalued with flawless balance sheet.
Similar Companies
Market Insights
Advertisement
Weekly Picks
JO
Jolt_Communications on Myseum ·
The Future of Social Sharing Is Private and People Are Ready
Fair Value:US$7.9577.4% undervalued
35 followersusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
TO
Tokyo on ASML Holding ·
EU#3 - From Philips Management Buyout to Europe’s Biggest Company
Fair Value:€1.31k9.0% undervalued
30 followersusers have followed this narrative
4 commentsusers have commented on this narrative
11 likesusers have liked this narrative
YI
yiannisz on Booking Holdings ·
Booking Holdings: Why Ground-Level Travel Trends Still Favor the Platform Giants
Fair Value:US$5.47k6.3% undervalued
7 followersusers have followed this narrative
0 commentsusers have commented on this narrative
4 likesusers have liked this narrative
CO
composite32 on Shell ·
A fully integrated LNG business seems to be ignored by the market.
Fair Value:UK£36.122.7% undervalued
38 followersusers have followed this narrative
0 commentsusers have commented on this narrative
9 likesusers have liked this narrative
Recently Updated Narratives
CO
composite32 on SEGRO ·
SEGRO's Revenue to Rise 14.7% Amidst Optimistic Growth Plans
Fair Value:UK£9.3918.8% undervalued
6 followersusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
AL
alex30free on Beijer Ref ·
The Green Consolidator
Fair Value:SEK 128.821.0% overvalued
1 followerusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
BE
BenjaminMartins on EDP ·
EDP as a safe capital allocation with a potential upside of 28% with steady dividends
Fair Value:€513.2% undervalued
1 followerusers have followed this narrative
0 commentsusers have commented on this narrative
0 likesusers have liked this narrative
Popular Narratives
WE
WealthAP on PayPal Holdings ·
The "Sleeping Giant" Stumbles, Then Wakes Up
Fair Value:US$8236.2% undervalued
85 followersusers have followed this narrative
6 commentsusers have commented on this narrative
35 likesusers have liked this narrative
OO
OOO97 on Neo Performance Materials ·
Undervalued Key Player in Magnets/Rare Earth
Fair Value:CA$25.3324.6% undervalued
75 followersusers have followed this narrative
0 commentsusers have commented on this narrative
19 likesusers have liked this narrative
AN
AnalystConsensusTarget on NVIDIA ·
NVDA: Expanding AI Demand Will Drive Major Data Center Investments Through 2026
Fair Value:US$253.0226.6% undervalued
1049 followersusers have followed this narrative
6 commentsusers have commented on this narrative
31 likesusers have liked this narrative
Trending Discussion
HE
Hemingway on Aeva Technologies ·
NVDA+AEVA Agreement is a game changer for the AEVA stock even though it is just a partnership and does not have a roll out until 2028 (which means receivables as early as 2027, I would imagine) This agreement effectively moves the goal posts of profitability for AEVA much closer since this is in addition to the recent Forterra agreement, as well as the (previously announced) European carmaker agreement (which is believed to be Mercedes-Benz and estimated to be worth at least 1 billion in sales alone) Underneath all of this, AEVA has a pre-existing agreement with Daimler Truck. So business seems to be booming, especially with really big name brands…which tends to bring in even more brand names (and thus more agreements/contracts/announcements, etc). This dynamic often creates more coverage from analysts (often with upside stock initial coverage) that I believe will be occurring over the next 3 to 6 months (as professional traders/analysts often research for 2 to 3 months before initiating coverage of a new issue). I also feel that the above momentum increases the likelihood that companies that do not currently utilize 4G LIDAR technology might consider buying AEVA outright. Realistically, even with a substantial premium to the current stock price, the cost of AEVA would be a rounding error for the likes of a company such as Tesla, and certainly would allow them to maintain their technological edge as the competition for self-driving vehicles continues to heat up. However, I think it is equally possible for NVidea to decide to lock-in the AEVA technology for their upcoming autonomous hardware/software package by buying them outright. Obviously, the above factors and recent activity in the AEVA stock are cause for optimism. Of course, this all just one opinion , so please do your own due diligence. Disclaimer: I/We DO trade in this stock from time to time and I/we may (or may not have) a position currently, so again, please do your own due diligence.
0
|0
