Trading idea: Teleperformance (TEP-FR)
Our system also triggered an Enter Long Tactical signal on November 30, 2021 that imply a likely bullish acceleration. Teleperformance has a rather strong track record, with a Behavioral score of 10/10, therefore the bullish signal is to be considered as mainly Strategic.
Teleperformance is a € 21 Bn market cap world leader in outsourced services and consulting to companies dedicated to customer relationship management. The group specializes in the outsourcing of contact centers dedicated to customer relationship management.
Revenues are mainly derived from customer experience management services (89% of sales) including customer information services, technical assistance, customer acquisition, back-office services. The group also offers integrated business process management and digital transformation services and high added value consulting services. The second leg of revenues consists on specialized services (11% of sales) including online interpretation, management of visa applications and debt collection.
Teleperformance is a quality growth stock, with regular outperformance, strongt organic growth thanks to digital transformation and émergence of new service lines to support digital disruption and strong profitability. The company reported a y/y organic growth above 20% in Q3-21 and lifted its FY21 guidance. For 2021 sales are expected to reach €7 Bn coupled with a 14.7% operating margin. EPS are expect to grow by double digit in the next following years, thanks to solid organic growth coupled with operating margin improvement.
The company is also expected to continue « bolt on acquisitions ».
Short term catalyst : Acquisitions, growth acceleration.
This signal looks mainly company specific.