Current price levels represent good timing for the opening of new short positions with respect to shares in Tyler Technologies, Inc. The resistance zone around 292.45 USD could effectively set off a correction phase over the short term.
Strengths
● Its core activity has a significant growth potential and sales are expected to surge, according to Standard & Poor's' forecast. Indeed, those may increase by 40% by 2021.
● The company returns high margins, thereby supporting business profitability.
● Predictions on business development from analysts polled by Standard & Poor's are tight. This results from either a good visibility into core activities or accurate earnings releases.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● Analysts covering this company mostly recommend stock overweighting or purchase.
● Within the weekly time frame the stock shows a bullish technical configuration above the support level at 241.35 USD
Weaknesses
● The share is close to its long-term resistance in weekly data. Therefore, the potential should be limited. However, a further bullish movement when crossing this resistance will be a positive signal.
● The stock is currently in contact with a medium-term resistance that must be gotten rid of so as to resume the upward trend.
● The company's valuation in terms of earnings multiples is rather high. Indeed, the firm is getting paid 82.02 times its estimated earnings per share for the ongoing year.
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Tyler Technologies, Inc. is specialized in the development of information management software for the public sector. The group provides software solutions in the areas of financial management, education, jurisdiction, government, planning, regulation, land management, document, data and information management, assessment and taxation, public safety management and cyber security. Net sales break down by source of revenue as follows:
- sales of maintenance services (39.6%);
- sales of subscriptions (27.3%);
- sales of software-related professional services (19.6%);
- sales of licenses and royalties (9.2%);
- sales of valuation and tax software solutions (2.2%);
- other (2.1%): notably sales of computer hardware.