Guidewire Software (GWRE Quick QuoteGWRE - Free Report) recently announced that it is one of the founding members of the Critical Software as a Service (SaaS) Special Interest Group (CSaaS SIG) launched by the IT-ISAC (Information Technology – Information Sharing and Analysis Center).

Accompanying Guidewire in this endeavor, fellow founding members include – MongoDB, Okta, Oracle SaaS, ServiceNow, Workday and Zscaler.

Incorporated in 2000, the IT-ISAC is a nonprofit organization that has a mission to evolve a diverse community of companies, which leverage the power of IT and have a common commitment to cyber security. The IT-ISAC serves as a force multiplier that enables collaboration and the sharing of relevant, actionable cyber threat information and effective security policies and practices for the benefit of all. The IT-ISAC global membership base consists of industry-leading companies from three critical infrastructure domains – IT, food and agriculture and elections.
 
CSaaS SIG is IT-ISAC’s sixth special interest group, including the Elections Industry, Food and Agriculture, Insider Threat, Security Intelligence and Physical Security Special Interest Groups.

Benefits of Critical SaaS SIG

In today’s world, there has been a rapid rise in supply-chain attacks, which continue to target several organizations globally. Amid this scenario, the Critical SaaS SIG model will provide smaller, trusted forums for members to address common security challenges. It will serve as a platform for CSaaS companies to join forces on a collective defense strategy to enhance the security and strength of their services and share intelligence information with the broader industry as a whole.
 
Critical SaaS SIG will allow companies to share cyber threat intelligence and effective security practices. It will also provide a framework for these companies to collaborate on future security issues.

Further, Critical SaaS SIG will not only enable CSaaS vendors to address common security challenges that are distinct to them but will also provide access to the comprehensive suite of IT-ISAC member benefits.

The formation of Critical SaaS SIG will serve as an excellent opportunity for CSaaS providers like Guidewire to utilize and grow their individual investments in security to safeguard their customers. With this, it will augment the level of faith that customers can have in these organizations and the larger SaaS industry.

Guidewire is extremely optimistic about being a founding member of this significant group. GWRE’s involvement in this initiative will help it advance security and operational resiliency for its insurance customers in a coordinated manner with other CSaaS vendors. This will foster deeper levels of customer trust and greater strength across the insurance sector.

Guidewire’s Bright Prospects

San Mateo, CA-based Guidewire is a leading software solutions provider for P&C insurers. With digital transformation becoming the new normal in the insurance industry, the firm’s cloud-based subscription products are witnessing traction. Guidewire is benefiting from the robust adoption of the InsuranceSuite Cloud platform as insurers are increasingly looking for the digitalization of their business processes. Moreover, a less competitive market and regular customer additions are tailwinds.

As a cloud-based solution provider, GWRE provides enhanced flexibility and configurability to adapt to the changing market needs and customer expectations. The company offers omnichannel service across the entire insurance lifecycle, creates personalized customer journeys in record time and supports instant digital experiences.

Recently, Guidewire got selected by Tradition Mutual Insurance Company to automate and simplify the latter’s business processes. Guidewire will offer policy administration, underwriting, client data, rating, reinsurance, claims, billing and enterprise-wide data management and analytics to Tradition Mutual to automate its processes and speed up the workflow. This will deliver an enhanced omnichannel digital experience to Tradition Mutual’s brokers, policyholders and vendors.

Guidewire currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of GWRE have declined 12.7% against the industry’s growth of 11.3% in the past year.

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Stocks to Tap on

Some better-ranked stocks from the broader technology space include Bel Fuse (BELFB Quick QuoteBELFB - Free Report) , American Software and Iridium Communications (IRDM Quick QuoteIRDM - Free Report) . While Bel Fuse sports a Zacks Rank of 1, American Software and Iridium each carry a Zacks Rank #2 (Buy).

Bel Fuse has a projected earnings growth rate of 3.65% for 2023. The Zacks Consensus Estimate for Bel Fuse’s 2023 earnings has remained unchanged in the past 30 days.

Bel Fuse’s first-quarter 2022 earnings per share are estimated at 22 cents, suggesting year-over-year growth of 195.65%. Shares of BELFB have dropped 12.6% in the past year.

American Software has a projected earnings growth rate of 24.24% for fiscal 2022. The Zacks Consensus Estimate for American Software’s fiscal 2022 earnings has been revised upward by 4 cents in the past 60 days.

American Software’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 92.14%. Shares of AMSWA have declined 6.7% in the past year.

Iridium has a projected earnings growth rate of 157.14% for 2022. The Zacks Consensus Estimate for Iridium’s 2022 earnings has been revised upward by 2 cents in the past 60 days.

Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and met the same twice, the average surprise being 39.4%. Shares of IRDM have dropped 1.3% in the past year.