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The Descartes Systems Group Inc (DSGX) Stock Analysis

Temp Headwind edge

SellModerate Confidence

Technology · Software - Application

Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $72.18 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (3); Negative momentum.

The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management... Read more

$72.18+21.5% A.UpsideScore 5.6/10#48 of 96 Software - Application
Stop $67.14Target $87.74(analyst − 13%)A.R:R 1.7:1
Analyst target$100.85+39.7%13 analysts
$87.74our TP
$72.18price
$100.85mean
$126

Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $72.18 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (3); Negative momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Score 5.6/10, moderate confidence.

Passes 6/8 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 34d clear, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

Thesis

Rewards
High-quality business
Analyst upside: 22%
Risks
Consecutive earnings misses (3)
Negative momentum
Below 200-MA, MA slope -5.2%/30d (confirmed downtrend)

Key Metrics

P/E (TTM)38.7
P/E (Fwd)22.3
Mkt Cap$6.2B
EV/EBITDA19.1
Profit Mgn22.5%
ROE10.9%
Rev Growth15.1%
Beta0.19
DividendNone
Rating analysts9

Quality Signals

Piotroski F9/9

Options Flow

P/C0.34bullish
IV52%elevated
Max Pain$55-23.8% vs spot

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Obv
1.0
Macd
2.4
Rsi
2.9
Ma Position
6.0
Overbought bear rally (RSI 71)Volume distribution (falling OBV)Below 200-MA, MA slope -5.2%/30d — confirmed downtrend

No near-term catalyst priced in. Thesis progression will come from fundamentals grinding, not event reaction.static

Earnings History
0.0
Surprise Avg
0.0
Erm
5.0
Earnings Timing
5.0
Earnings concerns: 1B/3M
GatesMomentum 2.5<4.5Death cross (50MA < 200MA)A.R:R 1.7 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 34d clearSEMI CYCLE PEAK CLEARSuitability: Moderate
RSI
71 · Overbought
20D MA 50D MA 200D MADEATH CROSSSupport $62.81Resistance $78.45

Price Targets

$67
$88
A.Upside+21.6%
A.R:R1.7:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! NEWS_MOD=-1: HOLD_IF_HOLDING → SELL_IF_HOLDING
! Momentum score 2.5/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
M
M
M
1/4 beats
Next Earnings2026-06-03 (34d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DSGX stock a buy right now?

Sell if holding. Momentum 2.5/10 is below the 5.0 floor at $72.18 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Consecutive earnings misses (3); Negative momentum. Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Prior stop was $67.14. Score 5.6/10, moderate confidence.

What is the DSGX stock price target?

Take-profit target: $87.74 (+21.5% upside). Prior stop was $67.14. Stop-loss: $67.14.

What are the risks of investing in DSGX?

Consecutive earnings misses (3); Negative momentum; Below 200-MA, MA slope -5.2%/30d (confirmed downtrend).

Is DSGX overvalued or undervalued?

The Descartes Systems Group Inc trades at a P/E of 38.7 (forward 22.3). TrendMatrix value score: 4.8/10. Verdict: Sell.

What do analysts say about DSGX?

9 analysts cover DSGX with a consensus score of 3.9/5. Average price target: $101.

What does The Descartes Systems Group Inc do?The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the...

The Descartes Systems Group Inc. provides global logistics technology solutions in the United States, Europe, the Middle East, Africa, Canada, and the Asia Pacific. Its Logistics Technology platform offers a range of modular, interoperable web and wireless logistics management solutions. The company offers a suite of solutions that include routing, mobile, and telematics; transportation management; ecommerce, shipping, and fulfillment; customs and regulatory compliance; global trade intelligence; broker and forwarder enterprise systems; and B2B messaging and connectivity services. It also provides its customers to use its modular and technology solutions to route, track, and measure delivery resources; plan, allocate, and execute shipments; rate, audit, and pay transportation invoices; access and analyze global trade data; research and perform trade tariff and duty calculations; file customs and security documents for imports and exports; and various other logistics processes. In addition, the company offers consulting, implementation, and training services, as well as maintenance and support services. It serves transportation providers, such as air, ocean, and truck modes; logistics service providers, including third-party logistics providers, freight forwarders, and customs brokers; and distribution-intensive companies, such as retailers, manufacturers, distributors, and mobile business service providers through subscription, transactional or perpetual license basis. The Descartes Systems Group Inc. was incorporated in 1981 and is headquartered in Waterloo, Canada.

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