NICE Wins Pinal County Deal: Should You Buy, Hold or Sell the Stock?

Nice NICE shares have risen 4.3% in the past month, outperforming the Zacks Computer & Technology sector's decline of 2.2%.

The upside can be attributed to Nice's diverse portfolio, which is helping it gain new customers. Actimize, Evidencentral, CXone and Inform Elite are some of the solutions that have been gaining popularity. NICE's focus on its Evidencentral platform has been a key catalyst.

Nice recently announced that the Pinal County Attorney's Office in Arizona would be adopting its NICE Justice digital evidence management solution, part of the AI-driven Evidencentral platform.

The latest development aims to transform how the office handles digital evidence, providing a streamlined, cloud-based system that enhances efficiency and service delivery. 

Robust Portfolio Boosts Nice's Prospects

NICE's expanding portfolio has been a major growth driver of its success. In August, NICE announced that the Augusta (Georgia) Judicial Circuit DA's Office would deploy NICE Justice to expedite case processing and enhance digital evidence management.

Nice has a diverse portfolio, which is helping it gain new customers. Its partnerships with AT&T T and Microsoft have been a key catalyst.

NICE recently expanded its collaboration with AT&T to offer a unified incident capture and data analytics solution for NextGen 9-1-1 centers, showcasing it at APCO 2024.

A deepening partnership with Microsoft is noteworthy. NTR-X Compliance Recording and Assurance Solution has secured transactable solution status in Microsoft's Azure Marketplace.

NICE's expanding cloud offerings, mainly its CXone platform, are a plus. During the second quarter of 2024, it reported cloud revenues of $482 million, up 26% year over year.

NICE's policy of frequently updating its portfolio has been a key catalyst as it aids in fending off competitors from other industry players like Five9 FIVN, Salesforce and 8X8, who are also expanding their portfolio in the CX market.

In June, Five9 announced an enhanced collaboration with Salesforce, integrating AI-powered solutions to improve customer experiences in contact centers.

NICE's Q3 Guidance Positive

Nice's efforts to enhance its customer experience with its robust cloud solutions are expected to drive top-line growth.

For the third quarter of 2024, NICE projects non-GAAP revenues to be between $676 million and $686 million, calling for 13% year-over-year growth at the midpoint. Non-GAAP earnings are estimated in the $2.62-2.72 per share band, suggesting 18% year-over-year growth at the midpoint.

The Zacks Consensus Estimate for revenues is pegged at $682.67 million, indicating 13.52% growth year over year. The consensus mark for earnings is pegged at $2.68 per share, increased by a penny over the past 30 days, indicating an 18.06 % year-over-year increase.

Here's What Investors Should do With NICE Stock

Despite Nice's strong portfolio and growing client base, the foreign exchange headwinds in the APAC market and stiff competition are major concerns.

The forward 12-month Price/Sales ratio for Nice stands at 4.18, higher than its Zacks Computers - IT Services sector's 2.99, reflecting a stretched valuation.

Nice currently carries Zacks Rank #3 (Hold), which suggests that it may be wise to wait for a more favorable entry point in the stock.

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