The tech-heavy Nasdaq Composite has gained more than 5% over the past month—outperforming the S&P 500 and the Dow Jones Industrial Average—as the accelerated pace of the global digital transformation continues to favor the technology industry. In fact, the Nasdaq Composite hit a…
record high on June 23 after Federal Reserve officials sought to calm fears of a sharp tapering of monetary easing.
Fed Chair Jerome Powell’s recent statement that the central bank will not be raising interest rates too quickly based solely just based on the possibility of an increase in inflation has buoyed investors’ optimism about technology stocks’ the growth prospects of technology stocks in the second half this year. With continued digital transformation and support from the low- interest- rate- environment, the tech industry is poised to soar.
Given this backdrop, we believe prominent Nasdaq stocks SS&C Technologies Holdings, Inc. (SSNC – Get Rating), Omnicom Group Inc. (OMC – Get Rating), and Kulicke and Soffa Industries, Inc. (KLIC – Get Rating) will are expected to achieve experience sustainable growth and deliver market-beating returns in the coming months.
SS&C Technologies Holdings, Inc. (SSNC – Get Rating)
SSNC is a software-enabled services provider that serves the financial services and healthcare industries in the United States and internationally. Securities accounting, front-to-back-office operations, performance and risk analytics, regulatory reporting, and healthcare information processes are all part of the company’s IT infrastructure. The company also offers consulting and implementation services as well as product support services to its clients. SNC is based in Windsor, Connecticut.
This month, SSNC announced that RiverNorth Capital Management, LLC and Hurricane Capital Advisors, has selected SS&C’s front-to-back-office system solutions to handle its $5.3 billion portfolio. SSNC will deliver offer fund administration, middle-office solutions, hosting, and cutting-edge order and execution management tools to the company, thereby helping it them to efficiently establish, manage, and expand its their businesses.
During the first quarter, ended March 31, 2021, SSNC’s revenue increased 5.1% year-over-year to $1.23 billion. Its operating income rose 23% from the year-ago value to $269.1 million. The company’s net income increased 76.3% year-over-year to $174.9 million, while its EPS grew 75.7% from the prior-year quarter to $0.65.
A $4.67The consensus EPS estimate of $4.67 for the current year represents an 8.6% increase year-over-year. The consensus revenue estimate of $4.91 billion for the current year represents a 4.9% increase from the same period last year. The stock has gained 33.6% over the past year and 21.6% over the past nine months.
It is no surprise that SSNC has an overall A rating, which equates to Strong Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting. The stock also has a B grade for Growth, Value, and Stability. In the Software-Business industry, it is ranked #2 of 59 stocks.
Click here to check out our Software Industry Report for 2021
In addition to the POWR Ratings grades we have just highlighted, you can see the SSNC rating for Momentum, Sentiment, and Quality.
Omnicom Group Inc. (OMC – Get Rating)
Founded in 1944, OMC provides advertising, marketing, and corporate communications services in the United States, Canada and internationally. The New York City company offers customer relationship management, public relations, sales support and healthcare services, as well as data analytics, and database management services to its customers.
This month, OMC agencies were honored for their creative and media excellence at Cannes Lions Live 2021. In the Network of the Festival competition, all three OMC creative networks (BBDO, DDB, and TBWA) were in the top 10. This recognition should help the company stand out in the market and drive growth for its clients.
In April, OMC the company priced announced the pricing of its $800 million of senior notes. It plans to use the public offering’s proceeds to…
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