CNXC Forecast


Bullish Case: Concentrix's recent acquisition of Webhelp and robust Q2 performance indicate solid revenue growth. Market volatility is leading to price inefficiencies, providing an attractive entry point for long positions.


Bearish Case: Scope for AI disruption in customer engagement services poses significant efficiency concerns, potentially leading to reduced profitability. Continued job reduction news may negatively impact investor sentiment.


Potential Outcomes:

1) Continued growth from strategic acquisitions (60% chance).

2) Decline in demand due to AI impacts (40% chance).

3) Recovery from recent lows supported by improved operational efficiency (50% chance).


Trading Oracle: Adopt a bullish strategy by employing a debit spread on CNXC. Buy $70 calls, sell $75 calls expiring in September 2024. This leverages current short-term volatility streaks, targeting a favorable risk/reward scenario with an optimistic market outlook.


July 25, 2024


Concentrix Forecast

CNXC      Concentrix











Correlated Assets

Assets that tend to move strongly with CNXC



VFC Forecast + Options Trading Strategies   VFC  VF (0.68)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.48)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.61)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.85)



Uncorrelated Assets

Assets with little price relationship to CNXC



LI Forecast + Options Trading Strategies   LI  Li Auto (0.48)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.61)


VFC Forecast + Options Trading Strategies   VFC  VF (0.68)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.85)



Anticorrelated Assets

Assets that tend to move strongly against CNXC



VFC Forecast + Options Trading Strategies   VFC  VF (0.68)


LI Forecast + Options Trading Strategies   LI  Li Auto (0.48)


ETRN Forecast + Options Trading Strategies   ETRN  Equitrans Midstream (-0.61)


XLE Forecast + Options Trading Strategies   XLE  Energy Select Sector SPDR (-0.85)





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