One hospitality software name just delivered record revenue, better margins, and stronger subscription growth. Another enterprise software leader is getting a fresh AI re-rating from Wall Street, while one financial platform still looks cheap but needs stronger client inflows before the buy case improves. We’ll show you where to buy and where to stay patient.
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Futures at a Glance📈
Futures are sliding again as tech weakness keeps weighing on the broader market. After last week’s record highs, traders are taking some heat out of the AI trade while watching Home Depot earnings, pending home sales, and another twist in the U.S.-Iran standoff.
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What to Watch
Earnings (Premarket):
• Home Depot, Inc. (The) [HD]
• KE Holdings Inc [BEKE]
• Amer Sports, Inc. [AS]
Earnings (Aftermarket):
• Keysight Technologies Inc. [KEYS]
• ZTO Express (Cayman) Inc. [ZTO]
• Toll Brothers, Inc. [TOL]
• James Hardie Industries plc. [JHX]
Economic Reports:
• Pending home sales (April): 10:00 am
Fed Speakers:
• Fed Governor Christopher Waller speech: 8:00 am
• Philadelphia Fed President Anna Paulson speech: 7:00 pm
• Atlanta Fed First Vice President Cheryl Venable closing remarks: 7:45 pm
Elite Trade Club Insider
$100 Million More Just Went Into One Defensive Stock
A major holder bought another $101.8 million worth of shares across three straight sessions in a defensive services company still down about 14% over the past year, while a biotech CEO bought just over $1.0 million with the stock still far below its 52-week high.
Most of you see the tip of the iceberg here. Our Elite Trade Club Insider readers will see where conviction is showing up in weakness and how to take advantage of it.
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Hospitality Software
Agilysys Gave Investors a Cleaner Software Recovery Signal
Agilysys Inc (NASDAQ: AGYS) delivered the kind of quarter that can make investors look past a rough chart. EPS came in at $0.63, beating the $0.50 forecast by 26%, while revenue reached $82.9 million, ahead of expectations and up 11.7% year over year. More importantly, this marked the company’s 17th straight quarter of record revenue.
The higher-quality part of the story is subscription growth. Subscription revenue rose 24.1% year over year to $36.9 million, and now represents 68% of recurring revenue. Gross margin also improved to 64.4% from 60.7% a year ago.
That matters because Agilysys is not just selling into hotels, restaurants, and resorts. It is building a more durable recurring-revenue model around hospitality software, property management, point-of-sale systems, and AI-driven efficiency tools.
The stock is still down about 15% over the past year and trades near 65x earnings, so this is not a cheap value setup. But after a weak six-month stretch, the quarter gave investors a real reason to revisit the stock.
My Take For You: Agilysys looks like a cleaner software rebound because the subscription mix is improving, margins are expanding, and revenue keeps hitting records.
My Verdict: Buy this. The risk is that hospitality tech spending slows and makes the high earnings multiple harder to defend.
Enterprise Software
ServiceNow Gets a Wall Street AI Reset, but the Proof Still Has to Follow
ServiceNow Inc (NYSE: NOW) got a much-needed boost after Bank of America restarted coverage with a Buy rating and a $130 price target. The call matters because it reframes the company as a winner from AI, not a victim of it.
ServiceNow has been under pressure from fears that AI agents could reduce the need for traditional software subscriptions, but BofA argued that large companies still need workflow orchestration, governance, approvals, and controls.
That is the bull case in one sentence. AI may create more work to govern, not less. ServiceNow’s platform already sits inside large enterprises, and its newer tools like Action Fabric and AI Control Tower are aimed at managing agents, models, identity, data, and governed actions across systems.
The company’s last update also showed subscription revenue of $3.67 billion, up 22% year over year, with customers spending more than $1 million annually on Now Assist more than doubling.
The stock is still down nearly 50% over the past year, so there is room for a rerating if investors start accepting the AI-control argument. But the numbers still need to validate the thesis through bookings, usage, and deal closures.
My Take For You: ServiceNow’s AI story is becoming more credible because governance and workflow control may become more important as agents spread through enterprises. The rally is justified, but the next earnings cycle needs to confirm it.
My Verdict: Buy this. The risk is that AI enthusiasm fades if bookings and usage-based revenue do not accelerate quickly enough.
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Financial Services
XP Shows Profit Growth, but Softer Flows Are the Problem
XP Inc (NASDAQ: XP) reported decent headline numbers, but the market focused on the weaker parts of the quarter. Gross revenue rose 8% year over year to 4.92 billion reais, net revenue also climbed 8% to 4.73 billion reais, and adjusted net income increased 7% to 1.32 billion reais. Adjusted diluted EPS rose 9% to 2.49 reais, which shows the business is still profitable and disciplined.
The issue is flows. Total net inflow fell to 14 billion reais, down from 24 billion reais a year ago and 32 billion reais in the prior quarter.
The retail take rate also slipped to 1.18% from 1.25%, which points to pressure in the core wealth and brokerage business. Retail revenue rose 10%, helped by equities trading, but fixed income revenue dropped 25%, showing that the mix is still choppy.
XP is trying to support the stock with capital returns. The board approved a $0.20 per Class A share dividend and a buyback program of up to 1.0 billion reais. At around 9x earnings, the valuation is low, but the stock needs stronger flows before the market gives it more credit.
My Take For You: XP is cheap and profitable, but the flow slowdown matters more than the buyback right now. The stock needs evidence that client activity is improving, not just capital returns.
My Verdict: Hold this. The risk is that weak inflows and lower take rates keep the valuation stuck despite the buyback.
Poll: What is the single biggest catalyst you're watching in markets right now?
Movers and Shakers
NIQ Global Intelligence [NIQ]: Premarket Move: -5%
NIQ is pulling back after a sharp insider-buy bounce. CEO Jim Peck bought 118,625 shares at an average price of $8.43, lifting his direct stake to 424,683 shares. That is a real confidence signal, especially after the stock got hammered following Q1 results.
But insider buying does not fix the chart by itself. The stock is still down more than 50% over the past year and trading near its lows, which means investors still do not trust the post-earnings setup.
My Take: Watch it, but do not buy yet. The CEO buy is encouraging, but NIQ needs follow-through before this becomes more than a dead-cat bounce.
Knife River [KNF]: Premarket Move: -4%
Knife River is slipping after refinancing and upsizing its Term B loan package to $895 million. The good news is the company lowered the interest margin by 0.25%, which should reduce cash interest costs. The less exciting part is that debt is still going up, with $400 million in new Term B loans added.
This is not a disaster, but it is not the kind of update that gets investors excited either. The stock is already down about 26% over the past year, and the market wants growth, not more leverage.
My Take: Stay on the sidelines. Lower interest costs help, but more debt is not enough reason to buy a lagging construction-materials stock.
Andersen Group [ANDG]: Premarket Move: +7%
Andersen is breaking higher again, pushing to around $40 premarket after a strong multi-month run. The stock has already surged from the high teens earlier this year, and the market is still rewarding the same setup: improving sentiment, valuation support, and better operational confidence after recent earnings strength.
The issue now is entry point. At $40, the stock is above the prior fair-value estimate of $35.96, so this is no longer the easy undervaluation trade it was a few months ago. Momentum is in control, but the bargain case has faded.
My Take: Stay long if you own it, but do not chase $40. This has become a momentum hold, not a fresh value buy.
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Everything Else
💰 Seven companies have kept paying and raising dividends through every major crash since the dot com era and the full list is free for now.
🏦 Treasury yields are rising as traders rethink Fed cuts, because sticky inflation keeps turning the easy-money story into a waiting game.
💼 Standard Chartered is cutting corporate roles to protect profit targets, which is banking-speak for trimming costs before investors ask louder questions.
📉 Japan’s economy shrank in the first quarter as inflation pressure and energy costs kept squeezing growth.
☁️ Google and Blackstone are reportedly creating a new AI cloud company, because the compute gold rush needs more picks and shovels.
₿ The SEC is preparing a plan for trading crypto versions of stocks, which sounds like Wall Street found a new way to make simple things complicated.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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