Recommendation: Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Position Status | Return(%)* |
|---|---|---|---|---|---|---|---|---|
| 10 Sep, 25 | TSSI | Buy | USD 14.4 | USD 15.12 | USD 16.0 | Same day | Closed |
12.92%
|
*Return(%) represent the percentage change between the entry price and exit price of the recommendation.
Data Powered by EOD Historical Data (“EODHD”).
TSS, Inc. provides comprehensive services for the planning, design, deployment, maintenance, and refurbishment of end-user and enterprise systems, and mission-critical facilities in the United States. The company operates through two segments, Facilities and Systems Integration. It offers a single source solution for enabling technologies in data centers, operations centers, network facilities, server rooms, security operations centers, communications facilities, and the infrastructure systems. The company also provides technology consulting, design and engineering, project management, systems integration, systems installation, facilities management, and IT procurement and reseller services. It serves IT OEM equipment, technology, and service companies; private sector businesses; and government or commercial end users. The company was formerly known as Fortress International Group, Inc. and changed its name to TSS, Inc. in June 2013. TSS, Inc. was incorporated in 2004 and is headquartered in Round Rock, Texas.
Strong Profitability Expansion: Adjusted EBITDA grew 103% YoY to USD 4.0 million in Q2 FY25, up from USD 2.0 million in Q2 FY24
Explosive Revenue Growth: Revenues increased 262% YoY to USD 44.0 million in Q2 FY25, compared to USD 12.2 million in Q2 FY24
Margin Compression: Gross profit rose only 72% YoY to USD 7.8 million in Q2 FY25, versus USD 4.5 million in Q2 FY24, lagging behind the 262% revenue growth
Decline in Facilities Management: Segment revenues fell 35% YoY to USD 1.5 million in Q2 FY25, compared to USD 2.3 million in Q2 FY24
TSS, Inc. faces a risk of over-reliance on procurement and AI-driven system integration growth, making it vulnerable to cyclical demand swings, margin compression, and concentration in a highly competitive data center infrastructure market
| Entry Price | Support* | Target 1** | Target 2** |
|---|---|---|---|
| 14.4 | 13.0 | 15.12 | 16.0 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
**Target prices may vary by ±0.5% depending on market volatility.
TSS, Inc. delivered outstanding second-quarter and first-half 2025 results, showcasing explosive revenue growth, strong profitability, and improved cash flow, driven largely by surging procurement and systems integration demand. With its Georgetown facility fully operational, the company is well-positioned to capitalize on accelerating adoption of AI-driven data center infrastructure. Backed by robust industry tailwinds and proven execution, management raised its full-year outlook, projecting at least 75% Adjusted EBITDA growth, underscoring confidence in sustained momentum and long-term expansion opportunities.
As per the above-mentioned price action, important financial updates, momentum in the stock over the last three months, and technical indicators analysis, a ‘Buy’ rating has been given for TSS, Inc (NASDAQ: TSSI) at the closing price of USD 14.40, as of September 09,2025.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Technology Industry: Information Technology Services
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to Revenue (x) | Enterprise Value to EBITDA (x) |
|---|---|---|---|---|---|---|---|---|
| TSSI TSS, Inc. Common Stock |
0.22 3.16% | 7.19 | - | - | 0.17 | 2.28 | 0.22 | -23.8843 |
| ACN Accenture plc |
-4.09 1.49% | 269.65 | 31.75 | 28.09 | 3.49 | 7.94 | 3.45 | 20.00 |
| IBM International Business Machines |
-3.52 1.16% | 299.80 | 32.79 | 20.83 | 3.32 | 8.50 | 4.06 | 20.10 |
| INFY Infosys Ltd ADR |
0.71 3.92% | 18.93 | 25.55 | 22.78 | 4.20 | 8.01 | 4.10 | 15.87 |
| AEXAY Atos Origin SA ADR |
0.004 0.04% | 10.37 | - | 0.28 | 4.20 | 1.74 | 0.52 | -2.0097 |
Data Powered by EOD Historical Data (“EODHD”).
Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.
Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 09,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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