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Here's Why You Should Consider Investing in Roper (ROP) Now
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Roper Technologies, Inc. (ROP - Free Report) currently boasts robust prospects on strength in its businesses, strong product portfolio, acquisitions and a sound capital-deployment strategy.
Image Source: Zacks Investment Research
The Zacks Rank #2 (Buy) company has a market capitalization of $41.4 billion. In the past three months, it has lost 10.2% compared with the industry’s decline of 10.4%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Business Strength: Roper’s Application Software segment is poised to benefit from strength across its Deltek, Aderant, CliniSys and Data Innovations businesses in the quarters ahead. Strong momentum across its Foundry, iTradeNetwork, iPipeline and rf IDEAS businesses, driven by favorable end markets, strong customer retention and network expansion, is likely to drive its Network Software & Systems segment’s performance. For the company’s Measurement & Analytical Solutions segment, strength in industrial, Verathon, Neptune and other medical products businesses is likely to be beneficial. For 2022, Roper’s overall organic sales are expected to increase 7-9% year over year.
Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. For instance, its acquisition of American LegalNet (January 2022) has been aiding its Aderant business in providing comprehensive software solutions to its customers in the legal industry. Some notable acquisitions made by ROP in 2020 are Team TSI Corporation, WELIS, Impact Financial Systems, Vertafore and EPSi. Acquisitions positively contributed 1% to Roper’s sales growth in the first quarter of 2022.
Solid Cash Flows & Shareholder Rewards: In first-quarter 2022, the company generated free cash flow of $459 million. Also, it believes that cash flow generation in 2022 will be impressive. Also, it remains committed to rewarding shareholders through dividend payouts. In the first quarter of 2022, the company paid out dividends worth $65.3 million. Also, in November 2021, it announced a 10% hike in its quarterly dividend rate.
Initiatives: ROP’s unique niche market strategy, strong operational execution and cost-control measures have been aiding it in driving its profitability and maintaining a healthy margin performance. Also, its continued focus on investing in long-term, sustainable organic growth along with product innovations is likely to be beneficial. For 2022, it anticipates adjusted earnings of $15.50-$15.75 per share, higher than $14.18 in 2021.
In the past 60 days, the Zacks Consensus Estimate for its 2022 earnings has trended up from $15.44 to $15.63 on six upward estimate revisions against none downward.
Other Stocks to Consider
Some other top-ranked companies from the same space are discussed below:
ASGN’s earnings estimates have increased 6.8% for 2022 in the past 60 days. Its shares have declined 17.3% in the past three months.
Amdocs Limited (DOX - Free Report) presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 9.4%, on average.
In the past 60 days, DOX’s earnings estimates have increased 1.2% for fiscal 2022 (ending September 2022). The stock has gained 3.2% in the past three months.
Momentive Global Inc. is presently Zacks #2 Ranked. Momentive’s earnings surprise in the last reported quarter was 100%.
In the past 60 days, the stock’s earnings estimates have increased 220% for 2022. MNTV has dipped 26.1% in the past three months.
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Here's Why You Should Consider Investing in Roper (ROP) Now
Roper Technologies, Inc. (ROP - Free Report) currently boasts robust prospects on strength in its businesses, strong product portfolio, acquisitions and a sound capital-deployment strategy.
Image Source: Zacks Investment Research
The Zacks Rank #2 (Buy) company has a market capitalization of $41.4 billion. In the past three months, it has lost 10.2% compared with the industry’s decline of 10.4%.
Let’s delve into the factors that make investment in the company a smart choice at the moment.
Business Strength: Roper’s Application Software segment is poised to benefit from strength across its Deltek, Aderant, CliniSys and Data Innovations businesses in the quarters ahead. Strong momentum across its Foundry, iTradeNetwork, iPipeline and rf IDEAS businesses, driven by favorable end markets, strong customer retention and network expansion, is likely to drive its Network Software & Systems segment’s performance. For the company’s Measurement & Analytical Solutions segment, strength in industrial, Verathon, Neptune and other medical products businesses is likely to be beneficial. For 2022, Roper’s overall organic sales are expected to increase 7-9% year over year.
Acquisition Benefits: The company intends to strengthen and expand its businesses through acquisitions. For instance, its acquisition of American LegalNet (January 2022) has been aiding its Aderant business in providing comprehensive software solutions to its customers in the legal industry. Some notable acquisitions made by ROP in 2020 are Team TSI Corporation, WELIS, Impact Financial Systems, Vertafore and EPSi. Acquisitions positively contributed 1% to Roper’s sales growth in the first quarter of 2022.
Solid Cash Flows & Shareholder Rewards: In first-quarter 2022, the company generated free cash flow of $459 million. Also, it believes that cash flow generation in 2022 will be impressive. Also, it remains committed to rewarding shareholders through dividend payouts. In the first quarter of 2022, the company paid out dividends worth $65.3 million. Also, in November 2021, it announced a 10% hike in its quarterly dividend rate.
Initiatives: ROP’s unique niche market strategy, strong operational execution and cost-control measures have been aiding it in driving its profitability and maintaining a healthy margin performance. Also, its continued focus on investing in long-term, sustainable organic growth along with product innovations is likely to be beneficial. For 2022, it anticipates adjusted earnings of $15.50-$15.75 per share, higher than $14.18 in 2021.
In the past 60 days, the Zacks Consensus Estimate for its 2022 earnings has trended up from $15.44 to $15.63 on six upward estimate revisions against none downward.
Other Stocks to Consider
Some other top-ranked companies from the same space are discussed below:
ASGN Incorporated (ASGN - Free Report) presently has a Zacks Rank #2. ASGN delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ASGN’s earnings estimates have increased 6.8% for 2022 in the past 60 days. Its shares have declined 17.3% in the past three months.
Amdocs Limited (DOX - Free Report) presently has a Zacks Rank of 2. Its earnings surprise in the last four quarters was 9.4%, on average.
In the past 60 days, DOX’s earnings estimates have increased 1.2% for fiscal 2022 (ending September 2022). The stock has gained 3.2% in the past three months.
Momentive Global Inc. is presently Zacks #2 Ranked. Momentive’s earnings surprise in the last reported quarter was 100%.
In the past 60 days, the stock’s earnings estimates have increased 220% for 2022. MNTV has dipped 26.1% in the past three months.