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Valued at a market cap of $24.6 billion, Tyler Technologies, Inc. (TYL) provides integrated information management solutions and services for the public sector. Based in Plano, Texas, the company’s clients primarily consist of federal, state, county, and municipal agencies, school districts, and other local government offices.
Companies worth more than $10 billion are generally described as “large-cap” stocks and Tyler Technologies fits right into that category. The company distinguishes itself as the pioneer of computer-assisted mass appraisal (CAMA) and is renowned for developing integrated software solutions for tax billing and collections and assessment administration functionality.
Shares of TYL are trading 4.1% below their 52-week high of $598.93, which they hit on Sep. 10. The stock has gained 21.5% over the past three months, surpassing the broader SPDR S&P Software & Services ETF’s (XSW) 7.3% returns over the same time frame.
In the longer term, TYL stock is up 37.4% on a YTD basis, surpassing XSW’s 4% gains. Moreover, shares of TYL have gained 47.3% over the past 52 weeks, significantly outperforming XSW’s 20.1% returns over the same time frame.
To confirm its bullish trend, TYL has been trading above its 200-day and 50-day moving average since late April.
TYL has benefited from impressive financial performance in recent quarters, its various strategic acquisitions, and positive industry trends, including the public sector's increasing reliance on technology to improve efficiency and service delivery.
Shares of TYL gained 9.4% following its Q2 earnings release on Jul. 24. It reported adjusted EPS of $2.40 per share, which surpassed Wall Street estimates of $2.34. The company’s revenue of $541 million also topped estimates of $537.3 million. TYL expects full-year earnings in the range of $9.25 to $9.45 per share, with revenue in the range of $2.12 billion to $2.15 billion.
TYL has significantly outpaced its rival, Cadence Design Systems, Inc. (CDNS), which gained 16.1% over the past 52 weeks and increased marginally on a YTD basis.
Given TYL’s outperformance relative to the broader market, analysts remain optimistic about its prospects. The stock has a consensus rating of “Strong Buy” from 17 analysts in coverage, and the mean price target of $598.47 suggests a premium of 3.3% to its current levels.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
