Why Clearwater Analytics Holdings, Inc. (CWAN) Went Up On Thursday?

We recently published a list of 10 Firms Stand Out Amid Market Downturn. In this article, we are going to take a look at where Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stands against other firms that stand out amid market downturn.

Pessimistic sentiment persisted on the stock market on Thursday as investors moved to sell off shares in an effort to minimize risks from uncertainties brought about by President Donald Trump’s continued tariff threats and policy shifts.

The Dow Jones plunged 1.01 percent, the S&P 500 declined 0.43 percent, and the tech-heavy Nasdaq lost 0.47 percent.

Amidst the overall market downturn, 10 companies stood out, clocking in double-digit gains during the trading session, thanks to a flurry of positive catalysts including strong corporate earnings results.

To come up with Thursday’s top performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A wide shot of a large financial data center.

Clearwater Analytics Holdings, Inc. (NYSE:CWAN)

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) grew its share prices by 10.72 percent on Thursday to finish at $29.94 each as investors bought up shares following a strong earnings performance in 2024.

In a statement, CWAN said it swung to a net income attributable to the company of $419 million in the fourth quarter of 2024, reversing a net loss of $4.19 million in the same period last year, as revenues increased by 27 percent to $126 million from $99 million in the same comparable period.

Meanwhile, net income stood at $424 million for the full year, reversing a net loss of $21.6 million in 2023.

CWAN said the strong net earnings performance can be attributed to the release of its Deferred Tax Asset Valuation Allowance in the fourth quarter which resulted in a one-time income tax benefit in our income statement of $472 million.

Revenue, on the other hand, totaled $126.5 million, an increase of 27.7 percent from $99 million year-on-year, while revenue for the full year rose 22 percent to $451 million from $368 million year-on-year.

Overall, CWAN ranks 9th on our list of firms that stand out amid market downturn. While we acknowledge the potential of CWAN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CWAN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.