Get All Access for $5/mo

What is Jay Soloff's Stock of the Week ??? Applying AI to their business products is where companies can gain an edge in the AI race. eGain (EGAN) is doing just that, and revitalizing its customer knowledge business in...

By Jay Soloff

This story originally appeared on StockNews

Applying AI to their business products is where companies can gain an edge in the AI race. eGain (EGAN) is doing just that, and revitalizing its customer knowledge business in the process. Let's take a look at this stock that just released its latest earnings.

Releasing earnings on Thursday, eGain (EGAN) appears to be in turnaround mode. According to CEO Ashu Roy, the company was seeing stalled deals in the first half of the year, but "we are now seeing many of those deals re-engaging and new RFPs launching with urgency and intent."

EGAN provides a customer engagement platform that provides client agents with information at their fingertips when their customers contact them with issues. The company counts among its many customers, L.L. Bean, Lands' End, and even the IRS.

eGain recently started deploying AI into its knowledge management systems, and now has a whole suite of "Knowledge + AI" products that can either be used by a customer agent, or provide self service options to customer clients who want to bypass the human interaction.

These AI enhanced tools are particularly critical at this time, as call center workers currently are experiencing both large turnover, estimated in the overall industry at over 30%, and more complex customer inquiries. An eGain sponsored survey of call center agents found that 63% of 456 surveyed said the questions they now receive are more complicated than in the past.

EGAN ranks very highly on the Quality metric of our POWR Ratings outpacing over 93.5% of all stocks in the database. The company has a stellar A rating overall, ranking in the top 15 stocks of all the stocks we track.

EGAN is trading at just 2.5x cash, and has gross margins of that top 70%. Its enterprise value (EV) to sales is just 1.29, and the company has almost no debt, very unusual for a tech company at this stage. In fact, in the latest quarter the company actually repurchased almost $5 million of its common stock, and has over $73 million in cash or cash equivalents on hand.

CEO Roy is excited about the interest being raised by generative AI, and said it is "rejuvenating interest in knowledge platforms, and this will drive demand for our products in fiscal 2024" (the company's fiscal year ended with the recent quarter).

With all the hype around AI, this is exactly the kind of stock that draws my interest. One that is actually using AI to enhance its product offerings, and drive new contract interest.

What To Do Next?

If you like the stock shared above…then you will love this new special report sharing 3 low priced companies with tremendous upside potential.

3 Stocks to DOUBLE This Year >


EGAN shares were unchanged in after-hours trading Friday. Year-to-date, EGAN has declined -35.77%, versus a 16.81% rise in the benchmark S&P 500 index during the same period.



About the Author: Jay Soloff


Jay is the lead Options Portfolio Manager at Investors Alley. He is the editor of Options Floor Trader PRO, an investment advisory bringing you professional options trading strategies. Jay was formerly a professional options market maker on the floor of the CBOE and has been trading options for over two decades.

More...

The post What is Jay Soloff's Stock of the Week ??? appeared first on StockNews.com

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Wells Fargo Reportedly Fired More Than a Dozen Employees for Faking Keyboard Activity

The bank told Bloomberg that it "does not tolerate unethical behavior."

Innovation

The Key to Real Innovation Is Cross-Pollination — Here Are 10 Ways to Implement It in Your Business

Transform your business with this unique approach to sparking innovation.

Business Models

5 Questions to Ask to Make Sure Your Company's Financial Plan Is on Track

Conducting a "check-up" at midyear is essential to maintain a healthy financial plan.

Leadership

7 Ways You Might Be Damaging Your Credibility as an Entrepreneur

Here are seven credibility killers entrepreneurs need to be aware of.

Business Solutions

Why Every Solopreneur Needs to Embrace AI-Powered Teams

With the right approach, solopreneurs can harness AI to drive efficiency, productivity and business growth.

Side Hustle

These Are the 10 Best Online Side Hustles of 2024 to Earn Extra Cash

From teaching to testing artificial intelligence, these side hustles can earn you quick cash from home.