Is a Breakout in the Charts for SS&C Technologies Holdings (SSNC)?

SS&C Technologies (SSNC) is approaching a resistance level.  If it surpasses this level a breakout could occur…

SS&C Technologies (SSNC) provides software products and software-enabled services to a variety of customers primarily in financial services but also healthcare firms. In addition, the company provides portfolio accounting, portfolio management, trading, banking/lending, and other software to asset managers, banks, and financial advisors.

The company is seeing success with its newest products and growing its client base. It was able to leverage algorithmics capabilities and the pandemic into its investment scenarios. On the health side, SSNC launched its flu pilot program, which provides outreach to SS&C Health clients to enhance the rates of flu vaccinations. The company also developed a similar COVAX program that ensured the successful completion of the COVID Vaccine.

SS&C has a healthy balance sheet with $1.8 billion in cash and only $78 million in short-term debt as of the last reported quarter. The firm’s net margin of 12.2% is higher than the industry average. In its most recent quarter, earnings were up 5% year over year, while revenue was flat.

The stock’s trailing P/E is elevated at 28.27, but its forward P/E is low at 14.73. The company has an overall grade of A, or a Strong Buy in our POWR Ratings, along with a Momentum Grade of A. Aside from a drop yesterday, the stock has been in an uptrend over the past ten days. 

Take a look at the 1-year chart of SSNC below with the added notations…

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