Braze(BRZE) ZACKS·2024-11-13 20:01Industry Overview - The technology services industry is mature and thriving in 2024, with revenues, income, and cash flows expected to gradually return to pre-pandemic levels, supporting stable dividend payouts [1] - The industry benefits from robust demand for multi-cloud-enabled software solutions as companies transition from legacy platforms to modern cloud-based infrastructure [3] - Industry players are integrating artificial intelligence and machine learning tools into applications to enhance dynamism and results, driven by elevated demand for enterprise software that boosts productivity and decision-making [4] - The Zacks Defined Technology Services industry has rallied 76.4% over the past year and surged 53.8% year-to-date, ranking within the top 26% of Zacks Ranked Industries, indicating potential market outperformance in the next three to six months [5] Recommended Stocks - Five mid and small-cap technology services stocks with favorable Zacks Rank and significant short-term price upside potential are recommended: MediaAlpha Inc (MAX), Braze Inc (BRZE), Byrna Technologies Inc (BYRN), The Real Brokerage Inc (REAX), and Klaviyo Inc (KVYO) [2][6] MediaAlpha Inc (MAX) - MediaAlpha operates an insurance customer acquisition platform in the US, optimizing customer acquisition in property and casualty insurance, health insurance, and life insurance through a real-time programmatic technology platform [7] - The stock has an average short-term price target representing a 95.6% jump from the last closing price of 35.70, with a maximum upside of 110.1% and a maximum downside of 16% [11] - Expected revenue and earnings growth rates are 23.9% and over 100%, respectively, for the current year, with the Zacks Consensus Estimate for current-year earnings improving over 100% in the last 90 days [12] Byrna Technologies Inc (BYRN) - Byrna Technologies develops and sells less-lethal personal security solutions, including handheld devices and shoulder-fired launchers, targeting both consumer and professional security markets [14][16] - The stock has an average short-term price target representing a 24.4% increase from the last closing price of 5.51, with a maximum upside of 56.9% and no downside [20] - Expected revenue and earnings growth rates are 76.2% and 0.1%, respectively, for the current year, with the Zacks Consensus Estimate for current-year earnings improving 16.7% in the last seven days [21] Klaviyo Inc (KVYO) - Klaviyo provides a cloud-native SaaS platform for data storage, segmentation, campaigns, and messaging infrastructure, offering personalized marketing tools including email, SMS, and push notifications [23][24] - The stock has an average short-term price target representing a 13.3% increase from the last closing price of $36.53, with a maximum upside of 28.7% and a maximum downside of 17.9% [25] - Expected revenue and earnings growth rates are 32.2% and 36.1%, respectively, for the current year, with the Zacks Consensus Estimate for current-year earnings improving 2.1% in the last 30 days [26]