AU · rank #20 · 2026-10-21
DSGX
NASDAQ · $7.45B (USD)
The exact numbers the algorithm saw.
| Composite score Z-score blend of all factors below. | 1.039 |
|---|---|
| EPS revisions (30d) Change in consensus EPS estimate over the past 30 days ($/share). | +$0.19 |
| Net revisions (30d) Number of analysts revising upward minus downward. | 6 |
| Insider signal (90d) $0 across 0 unique buyers. | -0.206 |
| Analyst upside Consensus target $102.62 | +18.4% |
| Momentum acceleration 3-month minus 12-month momentum. | +34.59% |
| Analyst rating 5 = Strong Buy, 1 = Strong Sell. | 4.43 |
| Gross margin TTM | +77.6% |
| 52w high | $97.71 |
| Market cap (USD) | $7.45B |
The AI research card
Independent qualitative review of each pick before the order is placed. On the rare day the research service is unavailable, the paper book trades on the quant ranking alone and no card appears here.
Summary
Descartes Systems operates a logistics network and data platform spanning customs, freight, transportation, warehouse, and trade-intelligence workflows, monetizing network scale across a fragmented global supply chain.
Rationale
100% revision agreement across six analysts, an 18% analyst upside, a 9.2% earnings beat, and 34.6% momentum acceleration collectively reinforce the analyst_upside signal for a high-gross-margin (78%) compounder executing two acquisitions while growing EBITDA 18% YoY.
Material risks
- 1The two rapid-fire acquisitions (Tai + Extensiv, ~$220M combined, both closed within weeks of each other) create near-term integration execution risk that could disappoint on cross-sell synergies and compress the EBITDA margin that underpins the quality thesis.
- 2SAP, Oracle, Manhattan, and Blue Yonder can bundle transportation, trade-compliance, and WMS functionality into enterprise contracts, directly threatening Descartes' positioning in the warehouse and freight-brokerage segments it just paid to enter via Extensiv and Tai.
AI verdict council
Each pick is reviewed independently by 3 models before any order. 3 of 3 voted to proceed.