Avaya Holdings Corp. (NYSE:AVYA) Is a Smart Long-Term Buy
Video Conferencing Market Worth $6.7 Billion by 2025 | CAGR: 9.2%
Avaya Holdings
Ticker: NYSE:AVYA
Price: $14.16
- The software segment is expected to emerge as the fastest growing segment over the forecast period owing to rapid technological advancements that are propelling organizations to continuously update their systems with the latest available technology.
- The cloud segment is expected to expand at the highest CAGR of 10.8% over the forecast period owing to increasing demand for flexibility and remote access.
The global video conferencing market size is predicted to reach USD 6.7 billion by 2025 , expanding at a CAGR of 9.2% from 2018 to 2025 . Growing deployment and use of video conferencing solutions in startups, educational institutes, corporates, and healthcare verticals in developing countries, particularly in Asia Pacific, is expected to drive the market.
Recently, a majority of countries in Asia Pacific witnessed the development of robust digital communication infrastructure that created the need for video conferencing solutions. Proliferation of video communication-enabled mobile devices and increasing number of video conferencing-as-a-service (VCaaS) providers are anticipated to contribute to the market growth.
Video conferencing is an efficient interaction and communication tool that enables small and large scale enterprises to reduce travel and operational costs incurred in conducting meetings. Demand for remote workforce management using video conferencing solutions has increased thanks to rapid globalization. Deployment of such solutions has enabled businesses to effectively communicate with multiple teams or clients in different locations.
Increased adoption of cloud-based video conferencing solutions, owing to advantages such as low operating cost and improved data security, is anticipated to act as a key driving factor in the worldwide market. Rapid growth in telemedicine, development of start-up ecosystem, and increased penetration of online education in developed as well as emerging economies, such as U.S., U.K., Japan, China, and India, are anticipated to play a important role in driving demand for these solutions over the forecast period. Integration of innovative technologies like virtual reality (VR) is also expected to drive the adoption of these solutions.
Business Summary
Avaya Holdings Corp. (Avaya) is a provider of digital communications products, solutions and services for businesses. The Company operates through two segments: Products & Solutions and Services.
The Products & Solutions segment develops, markets and sells unified communications and contact center solutions, offered on premises, in the cloud, or as a hybrid solution. The Services segment develops, markets and sells end-to-end global service offerings that enable customers to evaluate, plan, design, implement, monitor, manage and optimize enterprise communications networks.
Its communications solutions include voice, e-mail, chat, social media, video, performance management and ease of third-party integration. Its services consist of three business areas: Global Support Services, Enterprise Cloud and Managed Services and Professional Services.
The Company’s devices include Avaya Devices, Avaya Phones and Avaya Video Conferencing Endpoints.
Shayne Heffernan Trade Idea
“Our current price target of Avaya Holdings will come in around $16.64 which will give the stock a price increase of +16.61%.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 12.70.
The projected upper bound is: 16.05.
The projected lower bound is: 12.71.
The projected closing price is: 14.38.
Candlesticks
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 21 black candles for a net of 7 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 54.1176. This is not an overbought or oversold reading. The last signal was a sell 13 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.09. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 5 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -34. This is not a topping or bottoming area. The last signal was a sell 11 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 7 period(s) ago.
Rex Takasugi – TD Profile
AVAYA HLDNGS CRP closed up 0.040 at 14.270. Volume was 53% below average (consolidating) and Bollinger Bands were 52% narrower than normal.
Open High Low Close Volume 14.160 14.810 14.060 14.270 1,305,035
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 14.40 11.10 11.85 Volatility: 48 112 110 Volume: 1,728,651 2,256,812 2,823,267
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
AVAYA HLDNGS CRP is currently 20.4% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
Our volume indicators reflect volume flowing into and out of AVYA.K at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on AVYA.K and have had this outlook for the last 38 periods.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of the NYSE Stock Market.
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Sources:
Avaya Holdings Company Website
Thomson Reuters Metastock and Eikon financial tools
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