CXM - Sprinklr: Rebound Software Stock Trading At Bargain Multiples

2024-07-17 23:53:14 ET

Summary

• CXM stock has fallen ~20% this year, offering a cheap valuation that makes up for its growth deceleration.
• Sprinklr offers a broad product portfolio centered on the customer experience management space. It has already drawn a number of blue-chip customers and addressed a $60 billion TAM.
• The company's growth deceleration is balanced against high gross margins, sharply rising operating margins, and free cash flow.
• The stock trades at a very attractive ~2x forward revenue multiple.

As stock markets continue to rally to record heights, I continue to focus my tech stock portfolio on growth names that have fallen out of favor. I'm willing to take on names with some growth deceleration in exchange for cheap valuation multiples....

For further details see: