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Roper's (ROP) Rate Prediction Tools Selected by Schneider

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Roper Technologies, Inc.’s (ROP - Free Report) business unit, DAT Solutions, announced that Schneider Logistics Services participated in a pilot program for evaluating DAT’s truckload rate forecasting tools.

Notably, DAT’s forecasting tools allow users to generate rate predictions on the basis of price momentum, prevailing market conditions and historic data. As noted, Schneider will leverage DAT’s Market Conditions Index, a new supply and demand indicator that relies on load and truck post, searches, and transaction activities. In addition, Schneider will incorporate a new rate-prediction technology that leverages the power of DAT RateView, a strong database of the real-time spot market and current contract freight rates.

It is worth mentioning that in March 2020, Choptank Transport, a third-party logistics firm also joined the company’s pilot program for trialing a new set of DAT’s truckload rate forecasting tools. In addition to DAT’s data and analytics tools, Choptank decided to incorporate Book Now, an advanced load-tendering feature available in DAT Load Boards.

Our Take

Roper’s Application Software segment has been benefiting from strength across its Aderant, Data Innovations and Strata business units. For 2020, the company anticipates organic revenues of both Application Software, and Measurement & Analytical Solutions segments to grow in mid-single digits, while that of the Network Software & Systems segment is expected to increase in mid-teens. Also, the company’s unique niche market strategy and gains from acquired assets are likely to drive its profitability in 2020.

In the past six months, this Zacks Rank #3 (Hold) stock has lost 6% compared with the industry’s decline of 17.7%.

 


 

However, the company is experiencing weakness in its Process Technologies segment. For 2020, it anticipates the segment’s organic sales to decline in mid-single digits due to persistent softness in upstream oil & gas businesses. In addition, Roper has a highly leveraged balance sheet. In the last three years (2017-2019), the company’s long-term debt recorded an increase of 2.4% (CAGR). Notably, at the end of 2019, its long-term debt was $4,673.1 million.

Key Picks

Some better-ranked stocks from the same space are Tennant Company (TNC - Free Report) Broadwind Energy, Inc. (BWEN - Free Report) and EnPro Industries (NPO - Free Report) . While Tennant currently sports a Zacks Rank #1 (Strong Buy), Broadwind Energy and EnPro carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Tennant delivered a positive earnings surprise of 26.60%, on average, in the trailing four quarters.

Broadwind Energy delivered a positive earnings surprise of 10.42%, on average, in the trailing four quarters.

EnPro delivered a positive earnings surprise of 1.98%, on average, in the trailing four quarters.

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