Ahrvo Daily Movers ⬆: Mastech Digital
About Mastech Digital
Mastech Digital (ticker: MHH) provides digital transformation IT services to large, medium-sized, and small companies in the United States. It operates through two segments, Data and Analytics Services, and IT Staffing Services. The company offers data management and analytics services, including project-based consulting services in the areas of master data management, enterprise data integration, big data and analytics, and digital transformation by using onsite and offshore resources. It also provides a range of IT staffing services in the areas of data management and analytics, cloud, mobility, social, automation, business intelligence/data warehousing, web services, enterprise resource planning and customer resource management, and e-business solutions. In addition, the company offers digital transformation services through Salesforce.com and digital learning methods. The company was formerly known as Mastech Holdings, Inc. and changed its name to Mastech Digital, Inc. in September 2016. Mastech Digital, Inc. was founded in 1986 and is headquartered in Pittsburgh, Pennsylvania.
Ahrvo Stock Rankings
Mastech Digital is a top-fifty rated stock on Ahrvo, coming in 46th place (out of over 7,000+ stocks we cover) based on the most recent daily rankings. MHH has an AhrvoScore (overall score) of 99. Over the last 3 months, Mastech has seen a slight increase in AhrvoScore, up 1 point. Momentum Score, Value Score, and Growth Score are top-notch, coming in at 100, 84, and 99, respectively. MHH has a Quality Score of 62, largely attributed to its growth profile. However, the Quality Score is up 3 points (5%) over the last 3 months. Over the same time period, Momentum is flat (already at 100), Value is down 6 points (driven by strong price action), while Growth up 1 point. Relative to competitors, Mastech Digital ranks higher across all stock scores: Ahrvo Score 99 vs. 72, Momentum Score 100 vs. 64, Value Score 84 vs. 59, Quality Score 64 vs. 62, and Growth Score 97 vs. 69. Ahrvo’s proprietary trading signal also indicates that MHH is a STRONG BUY.
Our Take
Mastech has been a strong performer relative to other small-cap stocks. The Russell 2000 (ticker: IWM) is down 26% year-to-date, while Mastech is up 44% -outperforming by 60%. Demand for Mastech’s IT staffing and digital learning services has accelerated during the coronavirus pandemic. Furthermore, the companies recruiting centers in the U.S. and India help companies source talent in a very competitive technology job market. While MHH works with large corporations, it also works closely with medium and small organizations, which helps diversify their revenue base. Mastech’s business model has strong operating leverage- revenue is up 9% over the last year, while net income (profitability) is up 28%. Mastech has a 12-month median price target of $20, representing 20% upside from current levels. The stocks RSI is in neutral territory, presenting investors with an opportunity to acquire a stake in a growth company driven by a secular themes- remote work and digital learning. Like most small-cap stocks, MHH exhibits periods of high volatility, so investors need to have an appetite for risk.
-Appo Agbamu, CFA
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