DSGX Stock Analysis: Buy, Sell, or Hold?
DSGX - Descartes Systems Group Inc
$70.77
1.15 (1.65%)
▲
5d:
-3.46%
30d:
+6.82%
90d:
-20.87%
BUY
MODERATE Confidence
Analysis Updated: Mar 27, 2026 12:00 AM ET
Earnings: Jun 03, 2026
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Interactive Price Chart (1 Month)
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Bottom Line:
💡 BUY OPPORTUNITY: DSGX shows positive signals but monitor for confirmation. Market pricing in 4.1% decline. Moderate conviction.
💡 BUY OPPORTUNITY: DSGX shows positive signals but monitor for confirmation. Market pricing in 4.1% decline. Moderate conviction.
Long-Term Wealth Forecast (2031)
Based on Analyst Consensus Growth & Historical Valuation
0% (Stagnation)
50% (Hyper Growth)
EST. PRICE IN 2031
$94.52
Based on 7.8% avg growth
INTRINSIC VALUE TODAY
$58.69
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 $70.77, which is considered fair relative to its 30-day fair value range of $66.74 to $72.43. From a valuation perspective, the stock is trading at a discount (Forward PE: 26.7) compared to its historical average (30.2). Remarkably, the market is currently pricing in an annual earnings decline of 4.1% over the next few years. This pessimistic expectation contrasts with the company's recent 21.0% earnings growth, suggesting potential undervaluation if the company simply maintains stability.
Technical Outlook: Technically, DSGX is in a strong downtrend. The price is currently testing key support at $68.82. 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 (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $101.92 (+46.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Technical Outlook: Technically, DSGX is in a strong downtrend. The price is currently testing key support at $68.82. 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 (45/100), with neutral trendline and momentum signals. Wall Street analysts see significant upside, with an average price target of $101.92 (+46.4%). Combining these factors, the current setup offers a favorable risk/reward ratio for buyers.
Quick Decision Summary
Current Position
FAIR
Fair Price Range
$66.74 -
$72.43
Company Quality Score
60/100
(BUY)
Options IV Signal
50th percentile
(NORMAL)
Volume Confirmation
HIGH
Confidence Score
71.9%
All Signals
- NEUTRAL: Price in fair range
- NEUTRAL: Options fairly priced (IV 50th percentile)
- NEUTRAL: Mixed technical signals (45/100)
- BULLISH: High volume confirmation
- BULLISH: Trading 46.4% below Wall St target ($101.92)
Fair Price Analysis
30-Day Fair Range
$66.74 -
$72.43
Current vs Fair Value
FAIR
Expected Move (7 Days)
±$3.40
(4.8%)
Support & Resistance Levels
Support Level
$68.82
Resistance Level
$75.09
Current Trend
Strong Downtrend
Technical data as of
Mar 30, 2026
Fundamental Context
Forward P/E (Next Year Est.)
26.70
Wall Street Target
$101.92
(+46.4%)
Revenue Growth (YoY)
15.1%
Earnings Growth (YoY)
21.0%
Profit Margin
22.5%
Valuation Discount vs History
-4.1% cheaper
PE vs Historical
26.7 vs 30.2
CHEAP
Market-Implied Price Targets
If current PE multiple persists
Implied Growth (YoY):
-4.1%
(market-implied from PE analysis)
1-Year Target
$66.77
(-4%)
2-Year Target
$64.03
(-8%)
3-Year Target
$61.40
(-12%)
3-Yr Target (if PE normalizes)
(PE: 27→30)
$69.44
(0%)
3-Year Scenarios
Using analyst projected EPS growth
Bull:
(PE: 26.7, Growth: 11.5%)
$96.44
(+39%)
Base:
(SPY PE: 22.4, Growth: 11.5%)
$80.90
(+16%)
Bear:
(PE: 19.0, Growth: 11.5%)
$68.77
(-1%)
📈
Valuation based on Current Earnings
RECOVERY PLAY: Stock looks expensive now (39x PE), but valuation improves significantly next year (27x PE) as earnings recover.
Trailing PE: 38.80 | Current EPS (TTM): $1.87
Bull Case
$111.28
(+52%)
Analyst growth 39.4%, PE expands to 42.7
Base Case
$101.16
(+38%)
Market implied 39.4%, PE stable at 38.8
Bear Case
$49.34
(-33%)
Severe decline -20.0%, PE contracts to 33.0
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 26.7 to 30.2
Stabilization Target:
$78.74
(+13.1%)
PE Expansion Potential:
+13.1%
Share & Embed Analysis
Last updated: March 30, 2026 1:33 PM ET
Data refreshes hourly during market hours. Next update: 2:33 PM
Data refreshes hourly during market hours. Next update: 2:33 PM
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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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