Jack Henry: IT Solutions For The Financial Services Industry

Apr. 05, 2022 4:00 PM ETJKHY1 Comment3 Likes
Jim Van Meerten profile picture
Jim Van Meerten
66.01K Followers

Summary

  • 100% technical buy signals.
  • 11 new highs and up 9.84% in the last month.
  • 29.45% gain in the last year.
  • Analysts' price targets as high as 206.00.

Business visual data analyzing technology by creative computer software

Blue Planet Studio/iStock via Getty Images

The Chart of the Day belongs to the IT systems design company Jack Henry & Associates (JKHY). I found the stock by using Barchart's powerful screening function to find the stock with the highest Weighted Alpha and technical buy signals that are closest to their 52 week highs, then used the Flipchart function to review the charts for consistent price appreciation. Since the Trend Spotter signaled a buy on 2/9 the stock gained 16.08%. The stock is within .05% of its 52 week high.

Jack Henry JKHY

JHKY Price vs Daily Moving Averages

Jack Henry & Associates, Inc. provides technology solutions and payment processing services primarily for financial services organizations in the United States. It operates through four segments: Core, Payments, Complementary, and Corporate and Other. The company offers information and transaction processing solutions for banks ranging from community to multi-billion-dollar asset institutions under the Jack Henry Banking brand; core data processing solutions for various credit unions under the Symitar brand; and specialized financial performance, imaging and payments processing, information security and risk management, retail delivery, and online and mobile solutions to financial institutions and corporate entities under the ProfitStars brand. It also provides a suite of integrated applications required to process deposit, loan, and general ledger transactions, as well as to maintain centralized customer/member information; and complementary products and services that enable core bank and credit union clients to respond to evolving customer/member demands. The company's Jack Henry Banking business brand offers SilverLake, a robust solution primarily designed for commercial-focused banks; CIF 20/20, a parameter-driven, easy-to-use system for banks; and Core Director, a cost-efficient system with point-and-click operation. Its Symitar business brand provides Episys, a robust platform designed for credit unions. In addition, the company offers digital products and services and electronic payment solutions; purchases and resells hardware systems, including servers, workstations, scanners, and other devices; and provides implementation, training, and support services. Jack Henry & Associates, Inc. was founded in 1976 and is headquartered in Monett, Missouri.

Barchart's Opinion Trading systems are listed below. Please note that the Barchart Opinion indicators are updated live during the session every 20 minutes and can therefore change during the day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report.

Barchart Technical Indicators:

  • 100% technical buy signals
  • 36.92+ Weighted Alpha
  • 29.45% gain in the last year
  • Trend Spotter buy signal
  • Above its 20, 50 and 100 day moving averages
  • 11 new highs and up 9.84% in the last month
  • Relative Strength Index 78.99%
  • Technical support level at 198.11
  • Recently traded at 203.99 with a 50 day moving average of 178.37

Fundamental Factors:

  • Market Cap $14.1 billion
  • P/E 42.92
  • Dividend yield .98%
  • Revenue expected to grow 10.10% this year and another 6.70% next year
  • Earnings estimated to increase 16.70% this year, an additional 8.30% next year and continue to compound at an annual rate of 14.00% for the next 5 years

Analysts and Investor Sentiment -- I don't buy stocks because everyone else is buying but I do realize that if major firms and investors are dumping a stock, it's hard to make money swimming against the tide:

  • Wall Street analysts issued 2 strong buy, 9 hold and 1 underperform opinion on the stock
  • Some analysts have a price target as high as 206.00
  • 7,200 investors are monitoring the stock on Seeking Alpha

Ratings Summary

SA Authors Not Covered -
Wall Street Hold 3.25
Quant Hold 3.40

Factor Grades

Now 3M ago 6M ago
Valuation D- D+ D
Growth D D D-
Profitability A- B+ A-
Momentum A B- C+
Revisions A B+ C+

Quant Ranking

Sector

Information Technology

Industry

Data Processing and Outsourced Services

Ranked in Industry

13 out of 56

Ranked in Sector

118 out of 586

Ranked Overall

1016 out of 4284

This article was written by

Jim Van Meerten profile picture
66.01K Followers
Jim Van Meerten writes on financial subjects here and on Barchart Portfolio Blogs and Seeking Alpha. He earned a BS in Accounting and Business Administration from Berry College; a Juris Doctorate from the Woodrow Wilson School of Law; and attended post-baccalaureate and graduate courses in Business Administration, Quantitative Math, and Education at Florida Atlantic University, Georgia State University and University of North Carolina at Charlotte. In the past he has been an accountant, attorney, adjunct professor in Business Law, Accounting and Internal Auditing, financial advisor, supervisory principal, and compliance officer. He also passed the Georgia CPA Exam, the Certified Internal Auditor Exam, and the FINRA Series 7, 24 and 9/10 exams.He is presently also a contributor on MSN Top Stocks Blog, Motley Fool and is a member of the M100 on Marketocracy, an elete honor chosen by the editors of Marketocracy as being in the top 100 portfolio managers of over 100,000 portfoiios they review. He would enjoy hearing your comments at JimVanMeerten@gmail.com.
Follow

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in JKHY over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.

Recommended For You

Comments (1)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.