(KNOW) Know IT - Ratings and Ratios

Knowit AB is a Swedish consultancy firm operating across Northern Europe, providing a broad spectrum of services including management consulting, IT and digital product development, and various specialized solutions such as cybersecurity, cloud services, and digital transformation. The company is divided into five business segments: Solutions, Experience, Connectivity, Insight, and Other, catering to diverse client needs across industries.

With a presence in Sweden, Norway, Denmark, Finland, Poland, and internationally, Knowit AB leverages its expertise in areas like commercial excellence, digital HR, data analytics, and organization and leadership solutions to drive client success. The companys comprehensive service portfolio extends to cloud strategy and migration, cybersecurity, smart mobility, and sustainability services, positioning it as a versatile partner for businesses undergoing digital evolution.

From a technical analysis perspective, KNOWs stock has shown a recent price of 132.00 SEK, with its 20-day Simple Moving Average (SMA20) at 135.05 SEK, indicating a slight downward trend. The stock is currently below both its 50-day SMA (140.90 SEK) and 200-day SMA (143.01 SEK), suggesting a bearish outlook in the short to medium term. The Average True Range (ATR) of 3.61 SEK (or 2.74%) indicates moderate volatility. Given these technical indicators, a potential short-term trading strategy could involve waiting for the stock to break above its SMA20 or SMA50 to confirm a reversal in the downtrend.

Fundamentally, Knowit AB has a market capitalization of 3648.16M SEK, with a P/E ratio of 43.36 and a forward P/E of 29.59. The Return on Equity (RoE) stands at 2.03%, indicating relatively modest profitability. Considering the P/E and forward P/E, the market expects an improvement in earnings. If Knowit AB can deliver on this expectation, the stock might see a positive revaluation.

Forecasting the future performance of KNOW involves integrating both technical and fundamental analyses. If the company can achieve the expected earnings growth reflected in its forward P/E, and if the stock price can break through its current SMA resistance levels, theres potential for a positive outlook. A potential price target could be near its 52-week high of 178.89 SEK, assuming the company meets its earnings expectations and the overall market sentiment towards IT consulting services remains favorable. Conversely, failure to meet earnings expectations or a downturn in the IT consulting sector could push the price towards its 52-week low of 124.97 SEK.