Forrester Research Shares Face Mounting Headwinds

Forrester Research US3465631097

The equity of Forrester Research is experiencing significant downward pressure, driven by a downgraded market outlook and disappointing revenue forecasts. Investors are grappling with whether the stock, having shed substantial value from its annual peak, is now oversold or poised for further declines.

Market experts remain largely pessimistic despite a recent positive earnings surprise. For the third quarter of 2025, Forrester Research reported earnings per share (EPS) of $0.37, surpassing the consensus estimate of $0.31. However, this outperformance has failed to shift the negative sentiment.

The core of the ongoing skepticism centers on the company's top-line results. Quarterly revenue came in at $94.3 million, missing projections and representing an 8% year-over-year decline. Management has subsequently guided for a full-year 2025 revenue contraction of 6-9%, attributing the weakness primarily to challenges in its consulting and events businesses. The upcoming quarterly report is viewed as the next critical test for the firm. Until then, the poor revenue outlook is expected to continue weighing on investor confidence.

Technical and Market Indicators Paint a Bearish Picture

From a chart perspective, the situation appears equally challenging. The share price currently trades around $6.91, a stark contrast to its 52-week high of $17.51. A minor uptick on December 8th proved insufficient to reverse the established downward trend of recent weeks.

Technical analysis reinforces a negative view, with both short-term and long-term moving averages issuing sell signals. Key resistance levels are now positioned near $6.96 and $7.70, while the next major support level sits at $6.64. Furthermore, a heightened short interest of 14.81% indicates a growing number of market participants are betting on additional price depreciation.

This bearish technical alignment is reflected in recent analyst actions. While StockInvest.us slightly adjusted its rating from "Strong Sell" to "Sell," Intellectia AI maintains a firm "Strong Sell" recommendation. The combination of weak fundamentals and deteriorating technicals suggests the stock remains under considerable pressure.