A sharp week-on-week decline in value percentile rankings has hit several prominent technology companies, suggesting market perceptions around relative worth and fundamental strength are shifting.
What Does Value Ranking Mean?
Using percentile-based metrics, the Benzinga Edge Stock Ranking‘s value metric compares each company’s market price with core fundamentals such as assets, earnings, sales, and operating performance.
4 Overvalued Tech Stocks Deteriorating In Value Rankings
This week, Hewlett Packard Enterprise Co. (NYSE:HPE), Vimeo Inc. (NASDAQ:VMEO), DocuSign Inc. (NASDAQ:DOCU), and Yext Inc. (NYSE:YEXT) are notable tech stocks on the ‘Losers’ sheet that saw significant decreases in their value scores.
Hewlett Packard Enterprise
- Hewlett Packard Enterprise recorded a dramatic fall in value ranking, dropping from a previous score of 69.79 to just 29.86, a delta of 39.93 points week-on-week.
- The stock has gained 15.18% year-to-date and 43.53% over a year.
- It maintains a stronger price trend over the short, medium, and long terms with a moderate quality ranking. Additional performance details are available here.
Vimeo
- Vimeo also saw its value percentile deteriorate rapidly, falling from the 57.23rd to the 26.75th percentile, a decrease of 30.48 points.
- Higher by 19.14% in the YTD, the stock was up 52.27% over the year.
- With a good growth ranking, this stock maintained a stronger price trend over the short, medium, and long terms. Additional performance details are available here.
See Also: 3 Communication Services Stocks Show Improving Valuations
DocuSign
- DocuSign faced a significant crunch in its value score, dropping 22.32 points to land at 23.24 this week, compared to 45.75 last week.
- The stock has declined by 11.25% YTD, and it was up 41.28% over the year.
- It had a strong price trend in the short, medium, and long terms and a good growth ranking. Additional performance details are available here.
Yext
- Yext's week-on-week value metric declined from 27.62 to just 9.04, a steep dive of 18.58 points.
- It was up 33.08% over a year, but higher by 32.26% YTD.
- The stock experienced a stronger price trend in the short, medium, and long terms, with a poor growth ranking. Additional performance details are available here.
The latest value ranking slumps for Hewlett Packard Enterprise, Vimeo, DocuSign, and Yext illustrate that the tech sector's perceived overvaluation is being actively challenged. Each company's declining percentile score points to significant changes in how its market price aligns with fundamentals.
Price Action
The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, were higher in premarket on Monday. The SPY was up 0.21% at $658.79, while the QQQ advanced 0.16% to $586.32, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga
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