|Bid||348.21 x 1000|
|Ask||348.45 x 800|
|Day's Range||340.40 - 348.49|
|52 Week Range||237.27 - 355.69|
|Beta (5Y Monthly)||1.11|
|PE Ratio (TTM)||57.97|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Mar 23, 2005|
|1y Target Est||N/A|
Tom Plumb of Wisconsin Capital Management says growth-stock valuations aren’t overly high and expects investors to keep paying up for the most successful companies.
The analyst team over at Wells Fargo recently sounded a bullish tone on enterprise software stocks for 2020. The thesis? Enterprise software spending trends will pick up over the next few quarters, and as they do, most enterprise software stocks will head higher, too.For the record, I 100% agree with this thesis. Corporations hit the pause button on robust enterprise software spend in 2019 for two big reasons. One, they spent a lot on enterprise software in 2018 (spend rose nearly 14% year-over-year), so there wasn't a glaring need to up spend further in 2019. Two, rising trade tensions created immense economic instability, and companies didn't want to spend big against that backdrop.Consequently, enterprise software spend rose just 8.8% in 2019 -- one of its weakest annual growth rates in recent memory.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut, in 2020, corporations will re-accelerate their software spend, also for two big reasons. First, they didn't grow spend as much as normal in 2019, so there is ample room to re-up spend growth in 2020. Second, trade tensions are easing, stability is being injected back into the global economic environment, interest rates globally remain low, and corporate spending conditions broadly remain as favorable as they've been since 2017.As such, it should be no be surprise that Gartner projects global enterprise software spend to rise nearly 11% in 2019, up about 2 points from 2019's growth rate. * Invest in America's Most Trusted Brands With These 7 Stocks to Buy Against that backdrop, enterprise software stocks will rally. Here are my favorite picks in the group. Adobe (ADBE)Source: r.classen / Shutterstock.com One enterprise software stock which Wells Fargo raised their price target on and which I think is a long-term winner is cloud giant Adobe (NASDAQ:ADBE).In the big picture, there are a lot of things to like about Adobe. The company dominates in the creative and document cloud worlds, runs at sky high gross margins, has been growing revenues at a steady 20%-plus clip for several years, and is a cash flow and profit machine. But the upside bull thesis in ADBE stock is all about the company's new growth potential in the enterprise cloud.Specifically, everything in the enterprise world is pivoting towards a focus on the consumer experience, or CE. At the same time, CE is becoming increasingly visually-focused, because visuals do a much better job at immersing a consumer than words. Broadly, then, enterprises are putting more money into creating visually powerful CEs.When they do that, they are trusting Adobe to do it better than anyone else. Why? Because Adobe has long been behind the market's best-in-class media creation and editing tools, and is now leveraging its expertise in creative media to built robust media-based CEs for enterprises of all shapes and sizes.This trend is just beginning. In 2020, it will gain serious momentum as enterprises increase their investment into CE. Adobe's growth rates will move higher. Profits will keep roaring higher. And ADBE stock will soar to new highs above $350. Autodesk (ADSK)Source: JHVEPhoto / Shutterstock.com Wells Fargo really likes shares of architecture, engineering, and construction (AEC) software giant Autodesk (NASDAQ:ADSK). They hiked their price target on ADSK stock to a Street-high $240. ADSK stock presently trades around $195.But, can ADSK stock -- which is already up 140% over the past three years -- rally another 25% over the next twelve months?I think so. Autodesk dominates the AEC software vertical with widely-used and largely unparalleled solutions such as AutoCAD (used for 2D and 3D modeling) and Revit (used for Building Information Modeling). This dominant positioning means that as AEC firms up their software spend in 2020 -- and they will, because AEC markets were among the hardest hit by trade issues -- most of them will up spend on Autodesk services. Autodesk's revenue, margin, and profit trends will consequently remain healthy over the next several quarters, and that will provide support for continued gains in ADSK stock.It also helps that valuation isn't that much of a problem for Autodesk. Realistically, this company is looking at over $6 in earnings per share by fiscal 2022 (current Street estimates sit around $6). Based on a 35-times forward earnings multiple, which is average for application software stocks, that implies a fiscal 2021 price target of at least $210 (keep in mind, Autodesk is almost at the end of fiscal 2020). * 10 Stocks to Buy as the 2020 Presidential Election Approaches So is $240 achievable? I think so, mostly because as Autodesk keeps beating estimates, forward estimates will move up, and fiscal 2022 earnings per share estimates will shake out somewhere well north of $6 when all is said and done. Microsoft (MSFT)Source: The Art of Pics / Shutterstock.com Wells Fargo also upped its price target on cloud giant Microsoft (NASDAQ:MSFT) and reiterated its "overweight" rating on the stock. I like this call, too, mostly because accelerating enterprise cloud momentum will support huge growth at Microsoft in 2020.Long story short, Amazon (NASDAQ:AMZN) has long been the king of the cloud infrastructure market with Amazon Web Services. But, Microsoft's cloud infrastructure offering, Azure, has been rapidly gaining on AWS for several years now. This culminated in late 2019, when the two services went head-to-head in a competition for a multi-billion dollar Pentagon cloud contract. Microsoft won.It was a surprise victory from a company that has historically placed second in the cloud infrastructure market. And, it marks a critical pivot wherein Microsoft's days as second place are coming to a close. In 2020, I expect multiple enterprises of all shapes and sizes to take note of Microsoft's big Pentagon cloud contract win, and choose Azure over AWS as their public cloud infrastructure provider. The more this happens, the more momentum Azure will gain.That's great news for MSFT stock. Over the past few years, as goes the cloud sector, so goes Microsoft stock. Splunk (SPLK)Source: Michael Vi / Shutterstock.com Perhaps the boldest move from the Wells Fargo team in its recent software stocks update was upping its price target on big data company Splunk (NASDAQ:SPLK) to a Street-high $200, calling for another 30%-plus upside in shares over the next twelve months.Can it happen? Yes. Mostly because the data boom is just starting.In a nutshell, Splunk helps enterprises of all shapes and sizes turn their raw machine data into valuable and actionable insights through their Data-to-Everything platform. Three big trends will promote increased adoption of this platform over the next several years.First, the volume of data globally will surge higher thanks to a proliferation of data-generating devices, like smart watches, smartphones, smart appliances, smart cars, etc. Second, the ability to generate valuable insights from that data will get better and better, thanks to things like machine learning. Third, enterprise data-driven decision making will go from luxury to necessity, as companies that don't do it will be left behind the curve.Broadly, then, Splunk projects to go from a niche data analytics platform today, to a must-have data-driven decision making companion by 2025. This transition will power sustained long term gains in Splunk stock.Of note, in 2020, SPLK stock will be pushed higher by: 1) increased enterprise software spending trends, 2) continued migration from a legacy license model, to a cloud-based business model, and 3) a 5G boom accelerating the data growth narrative.Overall, Splunk stock looks good both for 2020 and into 2025.AS of this writing, Luke Lango was long ADBE. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Stocks on the Move Thanks to the Davos World Economic Forum * Invest in America's Most Trusted Brands With These 7 Stocks to Buy * 7 Earnings Reports to Watch Next Week The post 4 Boosted Enterprise Software Stocks to Buy in 2020 appeared first on InvestorPlace.
A gain of 6.04% in 2020 for shares of Adobe Inc. (ADBE) has big money written all over it. A great way to uncover tomorrow's winners is to look for great stocks seeing big buy activity, and Adobe could be just the opportunity. Smart money managers are always looking to bet on the next outlier stocks … the best in class.
When looking for the best artificial intelligence stocks to buy, investors should expand their search to unexpected fields. Salesforce.com and Trade Desk are among AI stocks on IBD's radar.
What fuels top-line growth for software growth stocks? At least four megatrends in technology: cloud computing, digital transformation, big data analytics and artificial intelligence.
Shares of Adobe Systems Inc. are up 0.9% in premarket trading Friday after Oppenheimer analyst Brian Schwartz upgraded the stock to outperform from perform, while Autodesk Inc. shares are off 0.7% after he made the reverse move on that software stock. Schwartz said that Adobe is the closest supplier among those he covers to achieving the "holy grail" of the customer experience, which in his view is "having the capability to smoothly integrate customer data, workflow, analytics, compute and reporting in real-time, across all devices." As for his Autodesk downgrade, Schwartz is concerned that the company's strong execution in its construction business can't balance a weak macroeconomic backdrop in the manufacturing sector. Autodesk's stock has added 33% over the past three months, while Adobe's has climbed 28% and the S&P 500 has risen 11%.
This group of 200 members is calling on other independent software makers to join their cause in fighting CRM suite makers that require customers to use only software tools in their suite.
Moody's Investors Service, ("Moody's") upgraded Adobe Systems Incorporated's senior unsecured rating to A2 from A3. Adobe surpassed $11 billion of revenue in FY 2019 (FYE November 29, 2019) and though small relative to other A2 rated issuers, its growth rate is among the highest in the rating category, its free cash flow well above the median for the category and its credit metrics among the strongest in the category. Adobe's growth rate has averaged over 20% since 2015 driven by increasing adoption of the company's creative tools and the digital transformation of the advertising and marketing process.
Previously, New Relic's chief product officer was based in Portland. The new CPO will share time between Salt Lake City, Portland and other global offices.
(Bloomberg) -- When Salesforce.com Inc. emerged two decades ago, it lashed out at the software establishment: large companies that allegedly locked clients into dated products. Now, a coalition of newer rivals have extended that criticism to the cloud applications pioneer. Ten software upstarts kicked off a public campaign Thursday that knocks customer relationship management, or CRM, titans, including Salesforce, Oracle Corp. and SAP SE, by saying the large companies keep clients trapped in subpar software suites, potentially shutting out smaller rivals with newer technology.The “Platform of Independents” leading the effort include Segment Inc., Amplitude Inc., Outreach Inc., Pendo.io Inc. and Drift.com Inc. Some of the companies are privately held unicorns, with valuations exceeding $1 billion. Each caters to a different software niche. The campaign began with a two-page ad in Thursday’s print edition of the Wall Street Journal and includes a web page and information sessions for prospective clients. More than 190 companies co-signed the main tenet of the campaign, that CRM software “isn’t enough” to provide good customer experiences to consumers.“We, as independent software companies, have built our products with the belief that a business should never be locked into a suite, never forced to have a one-size-fits-all technology approach, and its data should never be siloed,” the companies said in a statement. “It’s time to break free of the data monopoly.”The smaller companies argue the large software makers focus more on selling bundled packages of products than serving their clients’ needs with continuous innovation. Large technology companies have come under increasing antitrust scrutiny for their business practices, including how they wield power to maintain advantages over smaller firms. Beyond panning the quality of the bigger players’ technology, the chief executive officers of the startups said their larger rivals use acquisitions to bolster their market power.“If any of these guys becomes too big, that’s a threat to all of us in this ecosystem,” said Spenser Skates, CEO of Amplitude, which helps clients understand user behavior to improve product experiences. “Salesforce bought MuleSoft, Cisco bought AppDynamics. This is continuing to happen. It’s definitely a concern.”Representatives for Salesforce, Oracle, SAP, and Microsoft didn’t immediately respond to a request for comment. Salesforce has been well served by its strategy in the CRM market. The company’s shares climbed about 19% last year. Oracle’s stock rose about 17%. Salesforce led the market for customer-management applications with 16.8% as of 2018, the last full year for which data is available, according to research firm IDC. Oracle was next with 5.7% while SAP came in third with 5.6%. Adobe Inc. and Microsoft Corp. rounded out the top five.Salesforce, founded in 1999, is the youngest company in the group. The others have been around for about four decades.“I think there’s something significantly broken that there’s been no big CRM company built in the last 10, 15, or 20 years,” Peter Reinhardt, the CEO of Segment, which helps companies compile their data about consumers, said in an interview.Reinhardt, who spearheaded this campaign, said he isn’t interested in being acquired. Rather, he wants to work more closely with his Platform of Independents peers to jointly sell packages of software solutions to clients, as a way to counter the selling advantages and software product bundles of larger companies. And Reinhardt is optimistic that a shakeup is possible in enterprise technology.“I think we have a temporarily dominant set of companies,” he said. “But I think there’s a huge opportunity for another rewrite of the CRM world.”(Updates with 2019 share performance in the eighth paragraph.)To contact the author of this story: Nico Grant in San Francisco at email@example.comTo contact the editor responsible for this story: Andrew Pollack at firstname.lastname@example.org, Mark MilianFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Citrix's (CTXS) Q4 performance is likely to have gained from robust adoption of subscription-based services. However, sluggish demand in hardware-based appliances may have been a headwind.
Mega-caps, usually the largest and most established companies in the stock market, tend to be stable, and many of them pay dividends based on their earnings.
Rite Aid's (RAD) sound fundamentals and strategic endeavors might help it retain its bull run in 2020. Wellness remodels, the expansion of EnvisionRxOptions and innovative products are keys to growth.
IBM's Q4 performance is likely to have gained from growing adoption of cloud solutions. However, currency rate fluctuations and declines in IBM Z product cycle may have been concerns.
Adobe (ADBE) has been upgraded to a Zacks Rank 2 (Buy), reflecting growing optimism about the company's earnings prospects. This might drive the stock higher in the near term.
Adobe announced today that Adobe Experience Manager (AEM) is now available as a cloud-native SaaS application. Prior to this, it was available on premises or as a managed service, but it wasn't pure cloud-native. Obviously being available as a cloud service makes sense for customers, and offers all of the value you would get from any cloud service.
The Zacks Analyst Blog Highlights: Chevron, Accenture, Adobe Systems, Gilead Sciences and Honda Motor
Retailers best do a better job of embracing technology in the next decade than they did in the past 10 years. Yahoo Finance speaks with Microsoft CEO Satya Nadella about the future of retail.