Computacenter stock price explodes on a surge in demand for IT services

Shares of Computacenter (LON: CCC) skyrocketed today after the company said that it managed to secure some substantial technology sourcing contracts as the IT business continues to boom during the work-from-home regime. 

Fundamental analysis: The firm secures big contracts

Computacenter, the UK-based provider of IT services, said that it has managed to further grow its business on a surge in demand for its services amid the work-from-home setup.

However, the company is still not ready to commit to provide a “meaningful guidance” for the second half of the year. 

In April, the IT company said its profitability remained in-line with the previous year, despite the COVID-19 outbreak that created havoc across all industries. 

Technical analysis: Stock price explodes

Following the release of the trading update early this morning, shares of Computacenter skyrocketed to trade more than 12% higher on the day. The buyers are now fighting to force a close above the 200-DMA at £14.93, which should set up a base for the potential extension higher next week. 

Computacenter stock hit record highs days before the COVID-19 spread to the UK, causing the price to lose more than 50% of the value in just a few weeks. 

A close above £14.93 should open the door for another leg higher, which is likely to target the next important resistance near the £16.00 handle. 

Summary

Computacenter stock price is up nearly 13% on the day after the company released a trading statement to note big progress on the back of a surge in the demand for the work-from-home IT-related services.