Yext's Solid Q1 Caught Our Attention as Improving Fundamentals Reveal Stock's Potential

Fintel has launched coverage of Yext (US:YEXT) this week, after being alerted by the brand management software companys significant surge in its stock price, rising by 38.4% in trading on Wednesday.

While any rally usually warrants attention, when we applied Fintels quant analysis on the stock, it sparked even more interest under the microscope.

While the stocks rally pushes YEXT to annual highs, the stock has only really recovered back to levels seen in late 2021 toward the beginning of the rate hiking cycle.

This surge was fueled by the company's bullish first-quarter results, which exceeded the market's sales and EPS expectations as the figures surpassed the midpoint of management's guidance. The company's strong performance was attributed to expense efficiencies and stable trends in its core direct business.

The subscription software firm provides what it calls "digital knowledge management." It works with customers to manage their digital listings across more than 100 third-party providers such as Apple's iOS, Google search and Facebook. It listed its shares in April 2017 in an initial public offering that quickly afforded it a $1 billion market capitalization.