[ad_1]
SS & C Technologies (SSNC), a new addition to the screen of Friday's sector leaders, is one of the many most-rated stocks currently in the software industry. But like many other software, SS & C has strong fundamentals, but has been hit hard by the sale in recent weeks.
X
The company has built a strong position as a provider of software solutions for the financial services and healthcare sectors. Recent acquisitions are driving growth. This year alone, three acquisitions have been completed, allowing it to expand beyond its core client base of hedge funds and private equity firms. In April, he completed his purchase of DST Systems for $ 5.4 billion. Two months later, he announced his intention to buy Eze Software for $ 1.45 billion. In September, SS & C announced the purchase of the $ 1.5 billion Intralinks data sharing platform.
Top Stocks Today: Strong sales growth at SS & C
Shares jumped 4% in higher volume on Wednesday after the company announced its third consecutive quarter of accelerated earnings growth. SS & C also announced its second consecutive quarter of three-digit sales growth. Sales climbed 137% to $ 992.4 million.
A composite rating of 99, the highest possible, is favored by the annual ROE and pre-tax profit margin. In 2017, the annual ROE reached a multi-year high of 16.5%. The pre-tax margin reached a multi-year high of 33.9%.
SS & C ended the third quarter with cash and cash equivalents of $ 732.2 million and total debt of $ 6.76 billion. This gives the company a total debt of just over $ 6 billion. This is very positive, considering total equity rose to just over $ 4.2 billion at the end of the third quarter.
From a technical point of view, SS & C Technologies is not yet a redemption candidate as it is trading below the 200-day moving average. After Wednesday's strong gain, the title attempted to follow Thursday, but was rejected at the 200-day mark. For SS & C to exit its current downtrend, it should rebound above level 56. Stocks have recently traded around 50.75.
YOU COULD ALSO LOVE:
Stock IBD of the day
Calendar of results, badysts' estimates and stocks to watch
IBD 50 growth stocks to watch for: Find the best stocks to buy and follow
How can you manage this market? Start with these three steps
Source link
