We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tyler (TYL) Hits 52-Week High: What's Pushing Up the Stock?
Read MoreHide Full Article
Shares of Tyler Technologies Inc. (TYL - Free Report) scaled to a new 52-week high of $306.4, eventually closing a tad lower at $306.24 on Jan 2.
The stock has soared 73.4% in the past year, substantially outperforming the 22.5% rally of the industry it belongs to.
This outperformance can be attributed to the growing number of software subscription deals. Its broad line of software solutions and services, which aids in fulfilling the IT needs of major areas of operations for cities, counties, schools and other government entities is a tailwind.
Rationale Behind the Rally
Tyler is gaining traction from robust growth in new business. The company has been continually enhancing its core software applications and expanding complementary product and service menu to fulfill the changing needs of customers and respond to the technological advancements.
Notably, Tyler signed 288 new software contracts in the last reported quarter. Management mentioned that the company already surpassed the total number of deals inked in 2018 through the first nine months of 2019.
In the third quarter, the company added 150 subscription-based arrangements and converted 20 existing on-premises clients, accounting for nearly $47 million in total contract value.
Tyler has also been pursuing strategic takeovers to widen its product and service portfolio, enter new markets related to local governments, attract clients and expand geographically. Investments and acquisitions are helping it strengthen its competitive edge and exploit new and expanding opportunities.
On the last earnings call, management mentioned that the company snapped up 22 new ERP and public safety deals in the third quarter including Socrata's Data-as-a-Service platform. It also recorded seven wins with CaseloadPRO, now branded as Tyler Supervision.
Moreover, the company’s latest collaboration with Amazon’s cloud computing arm Amazon Web Services is likely to boost its cloud-first strategy.
We believe, a solid uptrend in subscription revenues, backed by large SaaS contract wins, will be a key driver for the company.
The long-term earnings growth rate for Baidu, Marchex and Synopsys is currently pegged at 2.3%, 15% and 12.8%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Tyler (TYL) Hits 52-Week High: What's Pushing Up the Stock?
Shares of Tyler Technologies Inc. (TYL - Free Report) scaled to a new 52-week high of $306.4, eventually closing a tad lower at $306.24 on Jan 2.
The stock has soared 73.4% in the past year, substantially outperforming the 22.5% rally of the industry it belongs to.
This outperformance can be attributed to the growing number of software subscription deals. Its broad line of software solutions and services, which aids in fulfilling the IT needs of major areas of operations for cities, counties, schools and other government entities is a tailwind.
Rationale Behind the Rally
Tyler is gaining traction from robust growth in new business. The company has been continually enhancing its core software applications and expanding complementary product and service menu to fulfill the changing needs of customers and respond to the technological advancements.
Notably, Tyler signed 288 new software contracts in the last reported quarter. Management mentioned that the company already surpassed the total number of deals inked in 2018 through the first nine months of 2019.
In the third quarter, the company added 150 subscription-based arrangements and converted 20 existing on-premises clients, accounting for nearly $47 million in total contract value.
Tyler has also been pursuing strategic takeovers to widen its product and service portfolio, enter new markets related to local governments, attract clients and expand geographically. Investments and acquisitions are helping it strengthen its competitive edge and exploit new and expanding opportunities.
On the last earnings call, management mentioned that the company snapped up 22 new ERP and public safety deals in the third quarter including Socrata's Data-as-a-Service platform. It also recorded seven wins with CaseloadPRO, now branded as Tyler Supervision.
Moreover, the company’s latest collaboration with Amazon’s cloud computing arm Amazon Web Services is likely to boost its cloud-first strategy.
We believe, a solid uptrend in subscription revenues, backed by large SaaS contract wins, will be a key driver for the company.
Zacks Rank & Stocks to Consider
Tyler currently has a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader technology sector are Baidu (BIDU - Free Report) , Marchex (MCHX - Free Report) and Synopsys (SNPS - Free Report) , each flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The long-term earnings growth rate for Baidu, Marchex and Synopsys is currently pegged at 2.3%, 15% and 12.8%, respectively.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>