JKHY Stock Surges 6.7% With A 6-day Winning Spree On Wolfe Research Upgrade to $220
Jack Henry & Associates (JKHY) stock hit day 6-day winning streak, with cumulative gains over this period amounting to a 6.7%. The company market cap has surged by about $867 Mil over the last 6 days, and currently stands at $14 Bil.
The stock has YTD (year-to-date) return of 4.3% compared to 1.9% for S&P 500. This calls for a re-evaluation of the stock’s valuation to find out whether this is an opportunity, or a trap.
What Triggered The Rally?
[1] Wolfe Research Upgrade to Outperform
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- Cited growing conviction in JKHY as a ‘sustainable structural winner’
- Upgrade reflects a significant premium to the stock’s price at the time
- Impact: Stock rating raised from ‘Peerperform’ to ‘Outperform’, Price target established at $220
Opportunity or Trap?
Below is our take on valuation.
There are only a couple of things to fear in JKHY stock given its overall Moderate operating performance and financial condition. But keeping in mind its High valuation, we think that the stock is Unattractive (For details, see Buy or Sell JKHY).
But here is the real interesting point.
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Returns vs S&P 500
The following table summarizes the return for JKHY stock vs. the S&P 500 index over different periods, including the current streak:
| Return Period | JKHY | S&P 500 |
|---|---|---|
| 1D | 0.6% | 0.2% |
| 6D (Current Streak) | 6.7% | 1.7% |
| 1M (21D) | 2.9% | 1.3% |
| 3M (63D) | 26.0% | 6.5% |
| YTD 2026 | 4.3% | 1.9% |
| 2025 | 5.5% | 16.4% |
| 2024 | 8.7% | 23.3% |
| 2023 | -5.7% | 24.2% |
Gains and Losses Streaks: S&P 500 Constituents
There are currently 96 S&P constituents with 3 days or more of consecutive gains and 22 constituents with 3 days or more of consecutive losses.
| Consecutive Days | # of Gainers | # of Losers |
|---|---|---|
| 3D | 79 | 15 |
| 4D | 8 | 6 |
| 5D | 3 | 1 |
| 6D | 3 | 0 |
| 7D or more | 3 | 0 |
| Total >=3 D | 96 | 22 |
Key Financials for Jack Henry & Associates (JKHY)
Last 2 Fiscal Years:
| Metric | FY2024 | FY2025 |
|---|---|---|
| Revenues | $2.2 Bil | $2.4 Bil |
| Operating Income | $489.4 Mil | $568.7 Mil |
| Net Income | $381.8 Mil | $455.7 Mil |
Last 2 Fiscal Quarters:
| Metric | 2025 FQ4 | 2026 FQ1 |
|---|---|---|
| Revenues | $615.4 Mil | $644.7 Mil |
| Operating Income | $155.7 Mil | $184.1 Mil |
| Net Income | $127.6 Mil | $144.0 Mil |
While JKHY stock looks attractive given its winning streak, investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.