EXCLUSIVE: Russell Strategist Uncovers Top Small-Cap Picks — Seizing Opportunities In A Low-Rate Environment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 09 2024
0mins
Should l Buy SPSC?
Source: Benzinga
Investment Insights: Paul Eitelman from Russell Investments highlights that small-cap managers are focusing on sectors like banks, technology, and highly indebted companies that may benefit from declining interest rates, while emphasizing the importance of stock selection over broad sector bets due to economic uncertainty.
Market Strategy: Eitelman advises a cautious approach in the small-cap space, recommending targeted sector tilts and prioritizing individual stock performance to navigate fluctuating economic conditions effectively.
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Analyst Views on SPSC
Wall Street analysts forecast SPSC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SPSC is 99.13 USD with a low forecast of 80.00 USD and a high forecast of 110.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
4 Buy
6 Hold
0 Sell
Moderate Buy
Current: 68.540
Low
80.00
Averages
99.13
High
110.00
Current: 68.540
Low
80.00
Averages
99.13
High
110.00
About SPSC
SPS Commerce, Inc. is a provider of retail supply chain cloud services, connecting trading partners around the globe to optimize supply chain operations for all retail partners. The Company supports data-driven partnerships with innovative cloud technology and customer-obsessed service that focuses on retail, grocery, distribution, supply, manufacturing, and logistics firms. The Company's products include Fulfillment, Analytics, and Other products. Fulfillment products offer a comprehensive solution designed to streamline supply chain operations. The Analytics products simplifies managing sell-through data from our customers business partners by handling data acquisition, cleansing, normalization, and delivery. Its Other products offer complementary products, such as assortment and community. In addition to these offerings, it also provides one-time services such as professional services and testing and certification.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SPS Commerce Set to Announce Q4 Earnings
- Earnings Announcement: SPS Commerce is set to release its Q4 earnings on February 12 after market close, with a consensus EPS estimate of $1.01, reflecting a 13.5% year-over-year growth, indicating the company's ongoing potential for profitability.
- Revenue Expectations: Analysts project Q4 revenue to reach $193.6 million, up 13.3% year-over-year, demonstrating the company's ability to maintain stable revenue growth amid strong market demand.
- Performance Beat Record: Over the past two years, SPS Commerce has beaten EPS estimates 100% of the time and has surpassed revenue estimates 88% of the time, showcasing the company's consistency and reliability in financial performance.
- Estimate Revision Dynamics: Despite no upward revisions and one downward revision in EPS estimates over the past three months, this has not diminished market confidence in the company's future performance, potentially providing investors with a more attractive entry point.
See More
SPS Commerce Launches MAX AI Functionality for Supply Chain
- AI Functionality Innovation: SPS Commerce's MAX leverages 300,000 trading connections and decades of expertise to help customers unlock greater value from AI, which is expected to significantly enhance operational efficiency and decision-making capabilities in the supply chain.
- Real-Time Monitoring Capability: The MAX Monitor feature continuously monitors transactions and workflows, automating routine tasks and proactively providing critical insights, which is anticipated to save time and improve operational performance, thereby enhancing customer competitive advantage.
- Embedded Workflow Integration: The MAX Chat feature is embedded directly into daily operations, allowing customers more direct access to proprietary insights, helping teams resolve potential issues before they escalate, thus reducing the risk of rejected shipments.
- Multi-Party Collaboration Support: MAX Connect supports collaboration with other agents, aiming to maximize the impact of AI for retailers, suppliers, and logistics partners, driving the intelligence and efficiency of the supply chain network.
See More
Activist Investor Pushes for Sale of SPS Commerce
- Investor Engagement: Activist investor Irenic Capital Management has taken a stake in SPS Commerce (SPSC) and is urging the supply chain software maker to explore sale options, indicating a strong interest in the company's future direction.
- Management Interaction: According to a Bloomberg report, Irenic has engaged with SPS Commerce's board and management, suggesting a desire to drive strategic changes through proactive dialogue to enhance shareholder value.
- Stock Price Volatility: SPS Commerce shares fell 2% on Thursday, with a total decline of over 50% in the past year, reflecting market concerns about the company's current operational status and the context of activist involvement.
- Competitive Pressure: Prior to Irenic's involvement, another activist investor, Anson Funds Management, disclosed its stake in SPS and called for the ousting of the CEO, further intensifying pressure on the company's governance and strategic direction.
See More
TRAN Capital Management Fully Divests SPS Commerce Stake for $15.37 Million
- Complete Divestiture: TRAN Capital Management sold its entire stake of 147,591 shares in SPS Commerce during Q4 2026, with a transaction value of $15.37 million, indicating a potential loss of confidence in the stock's future performance, which may affect market perception.
- Position Change: The divestiture resulted in a net position change of $15.37 million for TRAN, reflecting a reassessment of market prospects, particularly as SPS's stock has fallen over 50% from its peak, suggesting caution among investors.
- Top Holdings Analysis: Following the sale of SPS, TRAN's top holdings include Nvidia ($60.95 million), Talen Energy ($59.99 million), and Amazon ($59.51 million), indicating a strategic shift towards technology and energy sectors, likely in pursuit of more stable returns.
- Market Performance: As of January 21, 2026, SPS Commerce shares were priced at $91.13, down 53% year-over-year, facing pressure in the competitive supply chain management sector, prompting investors to closely monitor its future sales growth and strategic direction.
See More
SPS Commerce Unveils New Products to Address Supply Chain Trends
- AI-Powered Supply Chain Orchestration: SPS Commerce plans to launch AI-enabled fulfillment capabilities in early 2026, aimed at enhancing supplier performance through real-time data sharing, which is expected to significantly reduce errors and delays, thereby improving overall supply chain efficiency.
- Omnichannel Precision Enhancement: The newly introduced PDF Order Automation converts traditional PDF orders into ERP-ready digital transactions, enabling trading partners to maintain synchronization in order response speed and accuracy to meet the growing omnichannel demands.
- Support for Trade Rewiring: The SPS Relationship Center streamlines the onboarding process for new partners, reducing time to revenue and helping retailers and suppliers maintain visibility across multi-tier supply chains, thus minimizing potential operational disruption risks.
- Adaptive Commerce Era: SPS's Supply Chain Performance Dashboard provides a shared view of critical operational indicators, assisting trading partners in proactively identifying issues and adjusting strategies during demand fluctuations to ensure shelf availability and financial stability.
See More
SPS Commerce to Present at 28th Annual Needham Growth Conference on January 13, 2026
- Conference Participation: SPS Commerce will present at the 28th Annual Needham Growth Conference on January 13, 2026, at 12:45 PM E.T., showcasing its leadership in retail supply chain cloud services, which is expected to attract investor interest.
- Sustained Growth: The company has achieved 99 consecutive quarters of revenue growth, indicating strong market demand across retail, grocery, and distribution sectors, further solidifying its competitive advantage in the industry.
- Customer Base: SPS Commerce currently serves over 50,000 recurring revenue customers across retail, supply chain, and logistics, demonstrating its extensive market penetration and customer loyalty.
- Technological Innovation: By leveraging innovative cloud technology and customer-centric service, SPS Commerce optimizes supply chain operations, enabling clients to focus on their core business, thereby enhancing overall market competitiveness.
See More
SPS Commerce Set to Announce Q4 Earnings
- Earnings Announcement: SPS Commerce is set to release its Q4 earnings on February 12 after market close, with a consensus EPS estimate of $1.01, reflecting a 13.5% year-over-year growth, indicating the company's ongoing potential for profitability.
- Revenue Expectations: Analysts project Q4 revenue to reach $193.6 million, up 13.3% year-over-year, demonstrating the company's ability to maintain stable revenue growth amid strong market demand.
- Performance Beat Record: Over the past two years, SPS Commerce has beaten EPS estimates 100% of the time and has surpassed revenue estimates 88% of the time, showcasing the company's consistency and reliability in financial performance.
- Estimate Revision Dynamics: Despite no upward revisions and one downward revision in EPS estimates over the past three months, this has not diminished market confidence in the company's future performance, potentially providing investors with a more attractive entry point.
See More
SPS Commerce Launches MAX AI Functionality for Supply Chain
- AI Functionality Innovation: SPS Commerce's MAX leverages 300,000 trading connections and decades of expertise to help customers unlock greater value from AI, which is expected to significantly enhance operational efficiency and decision-making capabilities in the supply chain.
- Real-Time Monitoring Capability: The MAX Monitor feature continuously monitors transactions and workflows, automating routine tasks and proactively providing critical insights, which is anticipated to save time and improve operational performance, thereby enhancing customer competitive advantage.
- Embedded Workflow Integration: The MAX Chat feature is embedded directly into daily operations, allowing customers more direct access to proprietary insights, helping teams resolve potential issues before they escalate, thus reducing the risk of rejected shipments.
- Multi-Party Collaboration Support: MAX Connect supports collaboration with other agents, aiming to maximize the impact of AI for retailers, suppliers, and logistics partners, driving the intelligence and efficiency of the supply chain network.
See More
Activist Investor Pushes for Sale of SPS Commerce
- Investor Engagement: Activist investor Irenic Capital Management has taken a stake in SPS Commerce (SPSC) and is urging the supply chain software maker to explore sale options, indicating a strong interest in the company's future direction.
- Management Interaction: According to a Bloomberg report, Irenic has engaged with SPS Commerce's board and management, suggesting a desire to drive strategic changes through proactive dialogue to enhance shareholder value.
- Stock Price Volatility: SPS Commerce shares fell 2% on Thursday, with a total decline of over 50% in the past year, reflecting market concerns about the company's current operational status and the context of activist involvement.
- Competitive Pressure: Prior to Irenic's involvement, another activist investor, Anson Funds Management, disclosed its stake in SPS and called for the ousting of the CEO, further intensifying pressure on the company's governance and strategic direction.
See More
TRAN Capital Management Fully Divests SPS Commerce Stake for $15.37 Million
- Complete Divestiture: TRAN Capital Management sold its entire stake of 147,591 shares in SPS Commerce during Q4 2026, with a transaction value of $15.37 million, indicating a potential loss of confidence in the stock's future performance, which may affect market perception.
- Position Change: The divestiture resulted in a net position change of $15.37 million for TRAN, reflecting a reassessment of market prospects, particularly as SPS's stock has fallen over 50% from its peak, suggesting caution among investors.
- Top Holdings Analysis: Following the sale of SPS, TRAN's top holdings include Nvidia ($60.95 million), Talen Energy ($59.99 million), and Amazon ($59.51 million), indicating a strategic shift towards technology and energy sectors, likely in pursuit of more stable returns.
- Market Performance: As of January 21, 2026, SPS Commerce shares were priced at $91.13, down 53% year-over-year, facing pressure in the competitive supply chain management sector, prompting investors to closely monitor its future sales growth and strategic direction.
See More
SPS Commerce Unveils New Products to Address Supply Chain Trends
- AI-Powered Supply Chain Orchestration: SPS Commerce plans to launch AI-enabled fulfillment capabilities in early 2026, aimed at enhancing supplier performance through real-time data sharing, which is expected to significantly reduce errors and delays, thereby improving overall supply chain efficiency.
- Omnichannel Precision Enhancement: The newly introduced PDF Order Automation converts traditional PDF orders into ERP-ready digital transactions, enabling trading partners to maintain synchronization in order response speed and accuracy to meet the growing omnichannel demands.
- Support for Trade Rewiring: The SPS Relationship Center streamlines the onboarding process for new partners, reducing time to revenue and helping retailers and suppliers maintain visibility across multi-tier supply chains, thus minimizing potential operational disruption risks.
- Adaptive Commerce Era: SPS's Supply Chain Performance Dashboard provides a shared view of critical operational indicators, assisting trading partners in proactively identifying issues and adjusting strategies during demand fluctuations to ensure shelf availability and financial stability.
See More
SPS Commerce to Present at 28th Annual Needham Growth Conference on January 13, 2026
- Conference Participation: SPS Commerce will present at the 28th Annual Needham Growth Conference on January 13, 2026, at 12:45 PM E.T., showcasing its leadership in retail supply chain cloud services, which is expected to attract investor interest.
- Sustained Growth: The company has achieved 99 consecutive quarters of revenue growth, indicating strong market demand across retail, grocery, and distribution sectors, further solidifying its competitive advantage in the industry.
- Customer Base: SPS Commerce currently serves over 50,000 recurring revenue customers across retail, supply chain, and logistics, demonstrating its extensive market penetration and customer loyalty.
- Technological Innovation: By leveraging innovative cloud technology and customer-centric service, SPS Commerce optimizes supply chain operations, enabling clients to focus on their core business, thereby enhancing overall market competitiveness.
See More
