As price inflation ratchets up the pressure on consumer shopping habits, supply chain management firm Manhattan Associates looks to let some of the air out. Its seamless omnichannel experiences across the retail spectrum has MANH stock popping into buy range, landing it on both the IBD Breakout Stocks Index and the IBD 50.
Named for where it was founded in 1990 — in the Los Angeles coastal suburb of Manhattan Beach — the company now is headquartered in Atlanta. It helps streamline supply chain management across a range of industries, including retail, manufacturing, medical, pharmaceutical and food and beverage. Clients include popular brands like Crocs, Urban Outfitters and Floor & Decor.
In a just-released report, the company finds that 89% of consumers have altered their spending habits in response to cost-of-living challenges.
This added price pressure has shoppers seeking easy, frictionless and personalized experiences at all retail touchpoints, and retailers seeking to simplify supply chain management. Manhattan Associates notes that this trend is particularly true in nonfood retail. The company works with Crocs, Floor & Decor, Urban Outfitters and others with a focus on store digitization and omnichannel initiatives across both front- and back-end processes.
The same report found that 26% of retailers surveyed consider upgrading to an omnichannel, point-of-sale system as one of their top three business priorities for the next 12 months.
To that end, the company deploys the Manhattan Active Platform and other cloud-based systems. These are designed to deliver seamless integration and management of in-store and online retail. That includes all the supply chain logistics, inventory control and returns.
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Supply Chain Management Leader Attracts Top Funds
On July 25, Manhattan Associates reported second-quarter earnings growth of 88 cents per share, a 28% gain over the prior-year quarter. That brings the supply chain management leader's average earnings growth to 43.2% over the last three quarters.
Second-quarter sales growth rose 20% to $231 million. Over the last three years, annual revenue growth has averaged 13%.
When Manhattan Associates reports third-quarter results on Oct. 24, Wall Street forecasts 17% earnings growth, with estimates of a 12% gain in earnings per share for the full year.
While Manhattan Associates did not make this month's list of new buys by the best mutual funds, 41 funds with an A+ or A rating own shares in MANH stock.
MANH Stock Breaks Out In New Market Uptrend
After briefly clearing a 205.70 buy point in a cup with handle, MANH stock immediately retreated, eventually pulling back to its 50-day moving average. Since finding support at that benchmark line, Manhattan Associates has rebounded above that initial entry and back into buy range.
In a sign of market leadership, the relative strength line remains right around a new 52-week high.
Volume, however, remains an issue. While retaking its 50-day line and jumping back into a buy zone, volume in MANH stock has been light, consistently coming in below average. Such trade shows hesitation on the part of large investors.
The market indexes continue to build on the nascent uptrend despite the Israel-Hamas conflict, so look for heavier trade on the upside in MANH stock. Also keep in mind that Manhattan Associates is on deck to report earnings Oct. 24.
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