Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Convergys' Shares Jumped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of business relationship management expert Convergys (NYSE: CVG  ) found a soul mate in Mr. Market today as the stock jumped 13.8% in intraday trading amid fairly heavy volume.

So what: The just-reported third quarter saw 47% stronger non-GAAP earnings compared to the year-ago period, beating analyst estimates and backed up by strong sales in both IT and customer management solutions. Mind you, the stock also gained as much as 16% on the second-quarter report, only to lose 30% in a matter of days right behind that pop.

Now what: On days like this, Convergys may look like a solid performer, but the long-term picture tells a different story. This is a perennial 1-star or 2-star stock in our 5-star CAPS system, backed up by one-year and five-year charts where Convergys always lags behind direct rivals TeleTech (Nasdaq: TTEC  ) and Accenture (NYSE: ACN  ) , as well as on-and-off competitor IBM (NYSE: IBM  ) . All of these Convergys alternatives also carry more respectable CAPS ratings. In short, a couple of good-looking quarters don't erase years of slow growth and thin margins.

There are plenty of fish in the IT sea. Grab this free report to learn more about one game-changing technology trend -- and one stock that rules the roost in this exciting market.

Interested in more info about Convergys? Click here to add it to My Watchlist.

Fool contributor Anders Bylund holds no position in any of the companies mentioned. The Motley Fool owns shares of International Business Machines. Motley Fool newsletter services have recommended buying shares of Accenture. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinion, but we all believe that considering a diverse range of insights makes us better investors. Check out Anders' holdings and bio, or follow him on Twitter and Google+. We have a disclosure policy.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1582510, ~/Articles/ArticleHandler.aspx, 10/22/2016 12:07:31 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:01 PM
CVG $29.69 Down -0.10 -0.34%
Convergys CAPS Rating: ****
ACN $115.59 Down -0.46 -0.40%
Accenture CAPS Rating: ****
IBM $149.63 Down -1.89 -1.25%
IBM CAPS Rating: ****
TTEC $28.40 Up +0.15 +0.53%
TeleTech Holdings CAPS Rating: No stars