1 Small-Cap Tech Stock That Looks Promising

• Mitek Systems (MITK) is trading at a new 52-week high.
• Shares have strong technical momentum and are up more than 67% over the past year.
• MITK maintains a 100% “Buy” opinion from Barchart.
• Analyst sentiment is robust with multiple “Strong Buy” ratings. 

Today’s Featured Stock

Valued at $688 million, Mitek Systems (MITK) is primarily engaged in the development and sale of software products with particular focus on intelligent character recognition and forms processing technology. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction; and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. MITK checks those boxes. Since the Trend Seeker issued a new “Buy” on Feb. 9, shares are up 25.87%.

More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.

 

www.barchart.com

Barchart Technical Indicators for Mitek Systems

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Mitek Systems scored a 52-week high of $15.61 on March 5.

• Mitek has a Weighted Alpha of +85.58.
• MITK has a 100% “Buy” opinion from Barchart.
• The stock has gained 65.04% over the past 52 weeks.
• Mitek has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $14.90 with a 50-day moving average of $11.56.
• MITK has made 8 new highs and is up 26.12% over the past month.
• Relative Strength Index (RSI) is at 69.80.
• There’s a technical support level around $14.91.

Don’t Forget the Fundamentals

• $688 million market capitalization.
• 18.08x trailing price-earnings ratio.
• Revenue is projected to grow 7.39% this year and another 8.07% next year.
• Earnings are estimated to increase 20.63% this year and an additional 6.24% next year.

Analyst and Investor Sentiment on Mitek Systems

• The Wall Street analysts followed by Barchart gave the stock 5 “Strong Buy” and 1 “Hold” opinions with price targets between $13 and $17.
• Value Line rates the stock “Above Average.”
• CFRA’s MarketScope rates the stock a “Strong Buy.”
• Morningstar thinks the stock is 19% undervalued with a fair value of $18.89.
• 482 investors following the stock on Motley Fool think it will beat the market while 121 think it won’t.
• 11,610 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is 4.21% of the float with 1.75 days to cover the float.

The Bottom Line on Mitek Systems

Mitek operates in a highly competitive market with rapid technological advancements, posing risks of obsolescence and increased competition. However, there are no “Sell” recommendations on this stock.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.