DSGX Stock Analysis: Buy, Sell, or Hold?
DSGX - Descartes Systems Group Inc
$72.76
-2.00 (-2.68%)
▼
5d:
-12.04%
30d:
-17.0%
90d:
-18.68%
WAIT
LOW Confidence
Last Updated: February 2, 2026
Earnings: Mar 04, 2026
28d
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Interactive Price Chart (1 Month)
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Bottom Line:
⏸️ WAIT FOR STABILIZATION: DSGX is down 12.0% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
⏸️ WAIT FOR STABILIZATION: DSGX is down 12.0% over the last 5 days. While fundamentals may be solid, catching a falling knife is risky. Wait for price to stabilize before entering.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$94.58
Based on 8.1% avg growth
INTRINSIC VALUE TODAY
$58.73
Trading above fair value
How this is calculated: We use a Growth Decay Model: starting with analyst consensus growth (adjusted above) and gradually slowing it down to a long-term terminal rate (4%) by Year 5. This provides a more realistic valuation than assuming constant hyper-growth. We then apply a 25.0x Exit PE.
In-depth Analysis How we analyze
Valuation Analysis: DSGX is currently trading at $72.76, which is considered oversold relative to its 30-day fair value range of $79.69 to $88.69. From a valuation perspective, the stock is trading at a discount (Forward PE: 28.3) compared to its historical average (33.7). Remarkably, the market is currently pricing in an annual earnings decline of 5.6% over the next few years. This pessimistic expectation contrasts with the company's recent 19.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DSGX is in a downtrend. The price is currently testing key support at $72.32. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $111.08 (+52.7%). Current signals suggest waiting for a better entry point before initiating new positions.
Technical Outlook: Technically, DSGX is in a downtrend. The price is currently testing key support at $72.32. A bounce from this level would confirm strength, while a break below could signal further downside.
Market Sentiment: The stock shows a mixed technical setup (40/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $111.08 (+52.7%). Current signals suggest waiting for a better entry point before initiating new positions.
Quick Decision Summary
Current Position
OVERSOLD
Fair Price Range
$79.69 -
$88.69
Company Quality Score
57/100
(HOLD)
Options IV Signal
50th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
77.7%
All Signals
- BULLISH: Price oversold vs 30-day range
- NEUTRAL: Options fairly priced (IV 50th percentile)
- NEUTRAL: Mixed technical signals (40/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 52.7% below Wall St target ($111.08)
- WARNING: Recommendation downgraded due to -12.0% 5-day decline - wait for stabilization
Fair Price Analysis
30-Day Fair Range
$79.69 -
$88.69
Current vs Fair Value
OVERSOLD
Expected Move (7 Days)
±$3.63
(5.0%)
Support & Resistance Levels
Support Level
$72.32
Resistance Level
$87.14
Current Trend
Downtrend
Fundamental Context
Forward P/E (Next Year Est.)
28.34
Wall Street Target
$111.08
(+52.7%)
Revenue Growth (YoY)
11.2%
Earnings Growth (YoY)
19.0%
Profit Margin
22.1%
Valuation Discount vs History
-5.6% cheaper
PE vs Historical
28.3 vs 33.7
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-5.6%
(market-implied from PE analysis)
1-Year Target
$68.69
(-6%)
2-Year Target
$64.84
(-11%)
3-Year Target
$61.21
(-16%)
3-Yr Target (if PE normalizes)
(PE: 28→34)
$72.79
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 28.3, Growth: 12.2%)
$102.87
(+41%)
Base:
(SPY PE: 22.3, Growth: 12.2%)
$80.95
(+11%)
Bear:
(PE: 19.0, Growth: 12.2%)
$68.81
(-5%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (42x PE), but valuation improves significantly next year (28x PE) as earnings recover.
Trailing PE: 42.00 | Current EPS (TTM): $1.78
Bull Case
$118.62
(+63%)
Analyst growth 44.2%, PE expands to 46.2
Base Case
$107.83
(+48%)
Market implied 44.2%, PE stable at 42.0
Bear Case
$50.84
(-30%)
Severe decline -20.0%, PE contracts to 35.7
These are projections based on PE multiples and EPS growth scenarios, not predictions. Actual results may vary significantly.
💡
Upside Surprise Potential
If earnings stabilize (0% growth), PE could expand from 28.3 to 33.7
Stabilization Target:
$86.52
(+18.9%)
PE Expansion Potential:
+18.9%
Last updated: February 03, 2026 6:55 AM ET
Data refreshes hourly during market hours. Next update: 7:55 AM
Data refreshes hourly during market hours. Next update: 7:55 AM
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Technical Signals Check
Is DSGX showing a specific setup today?
Insider Activity (6 Months)
0
Buys
0
Sells
0
Net
NEUTRAL
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