4 software stocks are trading near 52-week lows to grab now

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The growing adoption of cloud computing and software solutions has helped businesses make their operations more efficient, with the ability to adapt to remote working. And the industry is expected to continue to witness a growing demand for innovative and advanced solutions. But concerns over upcoming Federal Reserve interest rate hikes have recently generated immense selling pressure on software companies.

But growing government and enterprise investments in cybersecurity solutions and remote access needs are expected to drive the growth of the industry. Investor optimism in this area is evidenced by Invesco Dynamic Software ETFs (PSJ) Gain of 0.3% over the past month, compared to SPDR S&P 500 Trust ETFs (TO SPY) negative returns. In addition, the global software market is expected to grow at a pace 7.1% CAGR to $824.85 billion by 2026.

SolarWinds Corporation Software Inventories (SU), Agilysys, Inc. (AGYS), Model N, Inc. (MODN) and Rimini Street, Inc. (RMNI) are trading near their 52-week lows. However, given their latest developments and long-term growth prospects, these stocks have immense upside potential. So we think it might make sense to enter these stocks now.

Click here to view our Software Industry Report for 2022

SolarWinds Company (SU)

SWI provides information technology (IT) infrastructure management software products internationally. the Austin, Texas, The company’s solutions enable organizations to monitor and manage the performance of their IT environments, including on-premises and hybrid models. The company sells its products directly to network and systems engineers, database administrators, storage administrators, DevOps professionals and managed service providers.

On February 2, 2022, SWI announced the availability of its database performance monitoring products, SolarWinds Database Performance Analyzer (DPA), SolarWinds SQL Sentry, and SolarWinds Database Insights for SQL Server, in the Microsoft Corporation (MSFT) Microsoft Azure Marketplace. By participating in the Microsoft Azure Consumption Commitment (MACC) transactional program, SWI is expected to witness growing demand from users looking to accelerate their business transformations.

SWI had cash and cash equivalents of $708.89 million as of September 30, 2021. It exceeded consensus EPS estimates in each of the past four quarters. The company’s EPS is expected to grow at a rate of 9.1% per year over the next five years.

The stock gained 0.7% in price over the past week to close yesterday’s trading session at $13.53. It is currently trading 7.4% higher than its 52-week low of $12.60.

SWI’s POWR ratings reflect this promising outlook. The stock has an overall rating of B, which is equivalent to buying in our POWR Rankings system. POWR ratings are calculated by considering 118 separate factors, with each factor weighted to an optimal degree.

The stock has an A rating for value and a B rating for stability and sentiment. Click here to see additional ratings for SWI’s Growth, Quality and Momentum. SWI is ranked #11 out of 58 stocks in the Software – Enterprise industry.

Agilysys, Inc. (AGYS)

AGYS operates as a developer and distributor of hardware and software products and services for the hospitality industry internationally. the Based in Alpharetta, Georgia The Company offers point of sale, property management, payment, inventory and procurement systems, and related hospitality applications to enhance the customer experience. It also provides technical software support, maintenance, subscription services, and professional services.

On February 2, 2022, The Flying Lark, a leading gaming, entertainment and dining destination, selected AGYS Agilysys cloud-native solutions for its new site at Grants Pass. AGYS’ award-winning InfoGenesis POS, IG Flex, will be introduced for mobile POS, IG OnDemand for F&B customer self-service ordering and payment, Agilysys Eatec for inventory and purchasing management, and Agilysys Seat for site reservations. This should enable AGYS to resolve customer experience issues in real time and provide an integrated experience for customers and staff.

For its third quarter of fiscal 2022, ended December 31, 2021, AGYS’ total net revenue increased 7.6% year-over-year to $39.46 million. The company’s gross profit was $24.72 million for the quarter, indicating a 2.2% year-over-year improvement. Its operating profit was $1.61 million compared to a loss of $1.81 million in the prior year period. As of December 31, 2021, the company had $115.12 million in cash and cash equivalents.

Analysts expect the company’s revenue to reach $160.12 million for its fiscal year 2022, ending March 31, 2022, which represents an increase of 16.7% over the period of the last year. The stock has fallen 0.5% over the past week and ended yesterday’s trading session at $39.71. It is currently trading 18.1% above its 52-week low of $33.63.

AGYS’ strong fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which is equivalent to Buy in our proprietary rating system.

It has an A rating for quality and a B rating for growth and stability. Click here to see the additional ratings for AGYS (Value, Momentum and Sentiment). AGYS is ranked #2 in the Software – Enterprise industry.

Model N, Inc. (MODN)

MODN provides cloud-based revenue management solutions for life sciences and high-tech companies. the Based in Redwood City, CA The company offers implementation, managed, strategic and customer support services. It mainly serves large and medium enterprises around the world through its direct sales force.

On February 1, 2022, the MODN announced the general availability of its new SaaS solution for pharmaceutical and biotech companies, designed to meet the growing demands of state price transparency mandates. With the growing number of states requiring transparency reporting, this new SaaS solution should see good demand from businesses in the coming months.

MODN’s total revenue for the first quarter of its fiscal year 2021, ended December 31, 2021, was $51.54 million, an increase of 20.6% over the prior year period. The company’s non-GAAP gross profit was $31.08 million, indicating a 14.8% year-over-year improvement. MODN had $155.51 million in cash and cash equivalents as of December 31, 2021.

The consensus revenue estimate of $214.75 million for its fiscal year 2022, ending September 30, 2022, represents an 11% increase over the prior year period. MODN has exceeded consensus EPS estimates in each of the past four quarters. The company’s EPS is expected to grow at a rate of 100% per year over the next five years.

The stock was down 3.8% over the past week to close yesterday’s trading session at $25.62. It is trading 2% higher than the 52-week low of $25.13.

MODN’s POWR ratings reflect its strong outlook. The stock has a B rating for growth and quality. MODN is ranked #35 out of 166 stocks in the Software app industry.

In addition to the POWR ratings we just highlighted, one can see the ratings for MODN value, momentum, sentiment, and stability. here.

Rimini Street, Inc. (RMNI)

Based in Las Vegas RMNI provides enterprise software products, services and support for various industries. The company provides software support services for Oracle and SAP enterprise software products and sells them primarily through direct sales organizations internationally.

On January 11, 2022, Yarra Valley Water, the largest water utility in Melbourne, Australia, transitioned to RMNI support for its entire Oracle software portfolio, which includes Oracle Database, Oracle Middleware, and Oracle Utilities Customer Care and Billing applications. RMNI will help Yarra Valley Water reduce its annual costs while maintaining and improving existing quality of service and accelerating its digital transformation.

For its third quarter of fiscal 2021, ended September 30, 2021, RMNI’s revenue increased 15.9% year-over-year to $95.64 million. The company’s gross profit was $62.27 million, indicating a 23.2% year-over-year improvement. Its non-GAAP operating profit was $16.50 million, an increase of 57.2% over the prior year period. Additionally, RMNI’s non-GAAP net income increased 39.8% year over year to $12.96 million. And as of September 30, 2021, the company had $103.02 million in cash and cash equivalents.

The consensus revenue estimate of $415.75 million for its fiscal year 2022, ending September 30, 2021, indicates an 11.9% year-over-year improvement. The company’s EPS is expected to grow at a rate of 15% per year over the next five years. The stock is down 6.4% over the past week and ended yesterday’s session at $4.83. It is trading 5.7% above its 52-week low of $4.57.

RMNI’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which is equivalent to Strong Buy in our proprietary rating system.

It has an A rating for quality and a B rating for growth and value. Click here to see additional ratings for RMNI (Momentum, Stability, and Sentiment). RMNI is ranked #3 in the software – applications industry.

Click here to view our Software Industry Report for 2022


SWI shares were trading at $13.73 per share on Tuesday morning, up $0.20 (+1.48%). Year-to-date, the SWI is down -3.24%, compared to a -6.54% rise in the benchmark S&P 500 over the same period.

About the Author: Sweta Vijayan

Sweta is an investment analyst and journalist with a particular interest in researching market inefficiencies. She is passionate about educating investors, so they can succeed in the stock market. Following…

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