Tera Software Receives 'Hold' Rating from MarketsMOJO, Shows Strong Performance and Attractive Valuation

Tera Software, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on October 30, 2024. This upgrade is based on various technical indicators that show a bullish trend for the stock.
One of the main reasons for the 'Hold' rating is the stock's strong performance in the past year, with a return of 89.74%. Additionally, the company's profits have also increased by 34.9%, resulting in a low PEG ratio of 0.5. This indicates that the stock is trading at a discount compared to its historical valuations.

Moreover, Tera Software has a very attractive valuation with a ROCE of 5.3 and an enterprise value to capital employed ratio of 0.9. This further supports the 'Hold' rating as it shows the company's ability to generate returns for its shareholders.

However, the company's long-term fundamental strength is weak with an average ROCE of 6.58%. This is due to poor growth in net sales and operating profit over the last 5 years. Additionally, the company's ability to service its debt is also weak, with a low EBIT to interest ratio of 1.39.

In terms of ownership, the majority shareholders of Tera Software are non-institutional investors. This indicates that the stock may be more volatile and subject to market fluctuations.

Overall, Tera Software has shown market-beating performance in the long term as well as the near term. However, investors should consider the company's weak long-term fundamentals before making any investment decisions.