i3 Verticals Outlook: A Stock with Mixed Signals and Weak Technicals

Market Snapshot

i3 Verticals (IIIV.O) has fallen sharply by 13.77% recently, with analysts and market signals pointing to a weak trend and a cautious outlook.

News Highlights

Recent news has centered around broader economic and policy shifts, though little of it directly impacts i3 Verticals:

U.S. vaccine policy changes (May 29, 2025): The Department of Health and Human Services updated its guidelines for Covid-19 vaccines, which may have indirect effects on healthcare-related sectors.

Trump’s tariffs (May 31, 2025): With new tariffs disrupting industries, analysts have warned of potential ripple effects, including on pharmaceuticals and international trade, which may indirectly affect i3’s operations.

China’s factory activity (May 31, 2025): While showing slight improvement, the PMI reading (49.5) remains below the 50 threshold, signaling continued contraction and potentially impacting global supply chains.

Analyst Views & Fundamentals

The analyst consensus for i3 Verticals is mixed. The simple average rating is 5.00, while the weighted historical performance rating is 0.00 due to the poor track record of the involved analyst. There is no consensus—in fact, the only analyst active in the past 20 days, Peter Heckmann from DA Davidson, rated the stock as a "Strong Buy," despite a historical win rate of just 0.00%.

This divergence between analyst ratings and the negative price trend raises questions about the reliability of the bullish call. Meanwhile, the fundamental score is 5.01, indicating moderate but unremarkable fundamentals:

Price-to-Book (PB): 140.61% (value: 1.4061) – Internal diagnostic score: 3.00

Price-to-Cash Flow (PCF): -33.51 – Internal diagnostic score: 1.00

Price-to-Earnings (PE): 1,181.89 – Internal diagnostic score: 0.00

Profit-to-Market Value (Profit-MV): -8.93% (value: -0.0893) – Internal diagnostic score: 1.00

Net Income-to-Revenue: -258.38% (value: -2.5838) – Internal diagnostic score: 2.00

Money-Flow Trends

The fund-flow score is 7.73 (with a score level of "good"), suggesting that large players are showing some interest. However, the overall trend is negative, with retail and institutional flows both moving in a downward direction:

Small-trend: Negative (inflow ratio: 0.4773)

Medium-trend: Negative (inflow ratio: 0.4992)

Large-trend: Negative (inflow ratio: 0.4681)

Extra-large-trend: Negative (inflow ratio: 0.4975)

Despite the negative momentum, the overall inflow ratio is 0.4830, indicating that some capital is still moving into the stock, albeit at a modest level.

Key Technical Signals

Technically, i3 Verticals is struggling. The technical score is 3.01, a clear signal to be cautious. Here’s a breakdown of the key signals:

RSI Oversold: Internal diagnostic score: 3.67 – While technically "oversold," historical signals show weak returns (avg. -0.16).

Marubozu White: Internal diagnostic score: 2.93 – A bullish candlestick pattern, but with poor historical performance (avg. -0.12).

WR Oversold: Internal diagnostic score: 2.42 – A weak signal with a 46.67% win rate and an average return of -0.16.

The recent 5-day period has seen multiple signals:

May 10–13: WR Oversold and RSI Oversold appeared repeatedly.

May 17: A Marubozu White candle emerged, indicating a brief attempt at bullish momentum.

However, the overall trend is weak, with 3 bearish indicators and 0 bullish ones. Momentum is unclear, and the stock is in a volatile, directionless phase.

Conclusion

Despite some positive inflow activity and a handful of oversold indicators, the technical and fundamental outlook for i3 Verticals is weak. With a technical score of 3.01 and a fundamental score of 5.01, the stock is not in a strong position to capitalize on its current low valuation metrics.

Actionable takeaway: Consider avoiding entry into IIIV.O for now, as the mixed analyst signals and poor historical performance suggest that the bearish trend is likely to continue. Investors should wait for a clearer breakout or a pullback with stronger technical confirmation before making any decisions.