This software company is forecasted to grow at an annual rate of 21.47% over the next 5 years. The company recently beat quarterly earnings estimates by $0.10.
SS&C Technologies Holdings, Inc. (SSNC)
From Dow Theory Forecasts
SS&C Technologies Holdings, Inc. (SSNC) supplies software and software-enabled services that help financial and health-care companies automate complex tasks. SS&C earns a modest Overall score of 73, primarily due to a subpar Value rank of 36.
But, at 22 times trailing earnings, the shares trade well below medians of 43 for their own three-year history and 35 for application-software stocks in the S&P 1500 Index.
A spurt of acquisitions helped SS&C double its revenue last year, though the company also generated 4% organic sales growth. SS&C is expected to grow per-share profits 28% and sales 36% in 2019. Analyst estimates have trended higher over the past 60 days, though the current consensus leaves room for upside, given management’s guidance.
The stock is being initiated as a Buy and a Long-Term Buy.
Richard Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, April 8, 2019