DOX Should I Buy
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Amdocs Ltd (DOX) does not appear to be a strong buy at the moment for a beginner investor with a long-term focus. While the company's financial performance shows modest growth, the technical indicators suggest a bearish trend, and hedge funds are heavily selling. Additionally, there are no recent positive news catalysts or strong proprietary trading signals to support a buy decision. Holding off for now is recommended.
The technical indicators for DOX are bearish. The MACD histogram is negative and expanding downward, RSI is at 15.149 indicating oversold conditions, and the moving averages are in a bearish alignment (SMA_200 > SMA_20 > SMA_5). The current price is near the S1 support level of 68.329, with further downside risk toward S2 at 64.615.
The company's financials for Q1 2026 show revenue growth of 4.13% YoY, net income growth of 6.21% YoY, and EPS growth of 9.02% YoY. Additionally, the renewal of the T-Mobile contract for five years provides some stability.
Hedge funds are selling heavily, with a 1713.29% increase in selling activity last quarter. The gross margin dropped by -3.58% YoY, and the stock is in a bearish technical trend. Analysts have lowered price targets recently, reflecting concerns about the macroeconomic backdrop.
In Q1 2026, Amdocs reported revenue of $1.16 billion, up 4.13% YoY, net income of $157.57 million, up 6.21% YoY, and EPS of 1.45, up 9.02% YoY. However, gross margin declined to 35.79%, down -3.58% YoY.
Analysts have recently lowered price targets for DOX. Barclays reduced the target to $92 from $111, and Stifel reduced it to $88 from $97. Both firms maintain positive ratings (Overweight/Buy), citing resilience in results and strategic wins, but acknowledge macroeconomic pressures.
