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Guidewire (GWRE) Gains 16% YTD: Will the Uptrend Continue?
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Guidewire Software (GWRE - Free Report) is witnessing healthy momentum this year with shares having gained 16% year to date compared with the sub-industry’s growth of 7.4% and S&P 500 Composite’s rise of 14.8%. The company is a leading provider of software solutions for property and casualty (P&C) insurers.
The increase in share price is driven by higher demand for cloud-based insurance software solutions. GWRE has been witnessing strong demand from Tier 1 and Tier 2 insurers for its cloud platform. In the last reported quarter, Guidewire Cloud clinched eight cloud deals.
Further, its focus on enhancing the Guidewire Cloud platform with new capabilities is expected to boost sales of subscription-based solutions. A solid uptick in multiple components of Guidewire’s InsurancePlatform including InsuranceSuite, digital, data and analytics is another tailwind.
Image Source: Zacks Investment Research
Going ahead, the company is likely to benefit as insurers modernize their legacy mainframe systems and replace previously modernized on-prem systems.
Continued momentum in data and analytics offerings is another key growth factor. Synergies from the buyout of HazardHub bode well for this segment. HazardHub provides extensive national coverage for risks that destroy and damage property. The addition of HazardHub is likely to have bolstered Guidewire’s portfolio, expanding the company’s presence in the P&C market.
GWRE’s fiscal 2023 and 2024 revenues are anticipated to rise 10.3% and 10.1% year over year, respectively.
The company’s earnings are expected to increase 82.4% and 616.7% on a year-over-year basis in fiscal 2023 and 2024, respectively. The Zacks Consensus Estimate for fiscal 2023 has narrowed to a loss of 9 cents per share from a loss of 22 cents 60 days ago. For fiscal 2024, the earnings estimate has increased 67.9% to 47 cents in the past 60 days, reflecting analysts’ optimism regarding the stock.
On the flip side, weakness in global macroeconomic conditions is compelling cutbacks in expenditure especially for mid and small-scale businesses. This is likely to act as a headwind in the near term. Increasing investments on product enhancements are expected to put pressure on margin expansion of this Zacks Rank #3 (Hold) stock.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 10.1% in the past 60 days to $1.85 per share. The long-term earnings growth rate is anticipated to be 12.3%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of DBX have gained 27.2% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have soared 104% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings has increased 9.3% in the past 60 days to $3.75 per share.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have improved 36.5% in the past year.
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Guidewire (GWRE) Gains 16% YTD: Will the Uptrend Continue?
Guidewire Software (GWRE - Free Report) is witnessing healthy momentum this year with shares having gained 16% year to date compared with the sub-industry’s growth of 7.4% and S&P 500 Composite’s rise of 14.8%. The company is a leading provider of software solutions for property and casualty (P&C) insurers.
The increase in share price is driven by higher demand for cloud-based insurance software solutions. GWRE has been witnessing strong demand from Tier 1 and Tier 2 insurers for its cloud platform. In the last reported quarter, Guidewire Cloud clinched eight cloud deals.
Further, its focus on enhancing the Guidewire Cloud platform with new capabilities is expected to boost sales of subscription-based solutions. A solid uptick in multiple components of Guidewire’s InsurancePlatform including InsuranceSuite, digital, data and analytics is another tailwind.
Image Source: Zacks Investment Research
Going ahead, the company is likely to benefit as insurers modernize their legacy mainframe systems and replace previously modernized on-prem systems.
Continued momentum in data and analytics offerings is another key growth factor. Synergies from the buyout of HazardHub bode well for this segment. HazardHub provides extensive national coverage for risks that destroy and damage property. The addition of HazardHub is likely to have bolstered Guidewire’s portfolio, expanding the company’s presence in the P&C market.
GWRE’s fiscal 2023 and 2024 revenues are anticipated to rise 10.3% and 10.1% year over year, respectively.
The company’s earnings are expected to increase 82.4% and 616.7% on a year-over-year basis in fiscal 2023 and 2024, respectively. The Zacks Consensus Estimate for fiscal 2023 has narrowed to a loss of 9 cents per share from a loss of 22 cents 60 days ago. For fiscal 2024, the earnings estimate has increased 67.9% to 47 cents in the past 60 days, reflecting analysts’ optimism regarding the stock.
On the flip side, weakness in global macroeconomic conditions is compelling cutbacks in expenditure especially for mid and small-scale businesses. This is likely to act as a headwind in the near term. Increasing investments on product enhancements are expected to put pressure on margin expansion of this Zacks Rank #3 (Hold) stock.
Stocks to Consider
Some better-ranked stocks in the broader technology space are Dropbox (DBX - Free Report) , Badger Meter (BMI - Free Report) and Blackbaud (BLKB - Free Report) . Dropbox currently sports a Zacks Rank #1 (Strong Buy), while Badger Meter and Blackbaud carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dropbox’s 2023 earnings has increased 10.1% in the past 60 days to $1.85 per share. The long-term earnings growth rate is anticipated to be 12.3%.
Dropbox’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.4%. Shares of DBX have gained 27.2% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have soared 104% in the past year.
The Zacks Consensus Estimate for Blackbaud’s 2023 earnings has increased 9.3% in the past 60 days to $3.75 per share.
Blackbaud’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average surprise being 10.4%. Shares of BLKB have improved 36.5% in the past year.