|premium|

Bill.com Stock Forecast: Earnings send BILL through chart resistance, next stop $185

  • Bill.com has advanced 17% on Friday.
  • BILL fiscal fourth quarter earnings beat analyst projections on top and bottom lines.
  • The stock's advance has placed it above resistance at $168.

Bill.com (BILL) stock is up 16.7% at $174.36 during Friday's morning session after dazzling the market with an earnings beat on Thursday night. The software-as-a-service company, beloved nearly unanimously by Wall Street analysts, reported a beat on both top and bottom lines with adjusted earnings per share (EPS) of $-0.03 on revenue of $200.2 million. The EPS figure was 11 cents ahead of consensus, and revenue bested the average forecast by $17 million.

The market was mostly impressed with revenue that exploded 156% YoY. Transaction fees were up 201% YoY, and organic core revenue came in 71% YoY.

"In 2022, 400,000 businesses used our solutions to automate their financial operations, get paid faster, and better manage their cash flow, more than three times the number of businesses that used us in the prior fiscal year," said CEO and founder Rene Lacerte. "We managed more than $225 billion in payments, and our network grew to 4.7 million members that have originated or received an electronic payment through our platform."

Management guided for a midpoint of $209.5 million in revenue during the next quarter and said it would achieve a non-GAAP EPS of $0.05 to $0.07. The fact that Bill.com is turning the corner so quickly toward profitability also has helped to send the stock higher. The average analyst price target is $186.42.

Bill.com stock forecast

At the current run rate for fiscal 2023, Bill.com stock is trading close to 20 times sales (19.6x). That does not seem to matter to its outspoken supporters, however, which are mostly hedge funds and other instituional investors. Like Snowflake (SNOW), Bill.com gets to sit in the premium seats and has not fared as badly as other high-multiple tech stocks in 2022's sell-off. It still gets the benefit of the doubt.

Friday's rally has pushed BILL above the $168 resistance level. That price level worked as a support level in February and March. The rally also places it back in league with where it was before the May earnings release sent shares tumbling.

Now the $185 level should be the focal point for all bulls looking to take profits. This region of resistance stems from the latter half of April and also coincides with the consensus price target for the stock. Above there is the $210 level from early and mid-April. The Accumulation/Distribution indicator has been trending up since late May and probably gave some traders the hint that BILL was ready for a rally.

BILL daily chart

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to PremiumSign In

Author

Clay Webster

Clay Webster

FXStreet

Clay Webster grew up in the US outside Buffalo, New York and Lancaster, Pennsylvania. He began investing after college following the 2008 financial crisis.

More from Clay Webster
Share:

Editor's Picks

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s  irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest 

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.