The technology industry is booming due to the increasing demand for software solutions in various sectors.Investors are looking to buy Amplitude, Inc., a fundamentally sound tech stock.ampoule), Weave Communications Inc.Weave), Enfusion, Inc. (Enfun), and is currently trading cheaply at under $10.
The application development software market is experiencing significant growth due to the increasing demand for software solutions across a wide range of sectors. This market includes a wide range of software tools and platforms designed to help create, test, and deploy applications for desktop, web, and mobile environments.
The growing importance of digital transformation across industries is driving the demand for application development software, creating significant growth opportunities for market players. The number of software developers worldwide is expected to reach 28.7 million. By the end of 2024, we expect a significant increase of around 3.2 million developers over four years.
Therefore, the global application development software market is Average annual growth rate: 7.8% By 2032.
With these positive factors in mind, let's take a look at the top fundamentals. Software Applications Buy and sell shares starting with the third option.
Stock #3: Amplitude, Inc. (ampoule)
AMPL and its subsidiaries provide digital analytics platforms for analyzing customer behavior internationally. The company offers Amplitude Analytics, Amplitude Experiment, Amplitude CDP and Amplitude Session Replay.
On June 12, 2024, AMPL announced the expansion of its partner ecosystem with six new and enhanced integrations, and the launch of a new integration portal to simplify and speed up integration development. These updates aim to empower businesses to better understand customer behavior and build better products.
In terms of its leveraged FCF margin over the past 12 months, AMPL's 20.38% is 106.7% higher than the industry average of 9.86%. Similarly, its asset turnover ratio over the past 12 months of 0.66x is 6.7% higher than the industry average of 0.62x. Furthermore, the stock's gross profit margin over the past 12 months of 74.64% is 52.3% higher than the industry average of 49.01%.
AMPL's revenue for the first quarter of its fiscal year ending March 31, 2024 increased 9.2% year over year to $53.74 million. Non-GAAP gross profit increased 12.1% year over year to $55.48 million.
During the same period, AMPL's non-GAAP net income and non-GAAP net income per share were $1.02 million and $0.01, respectively, while non-GAAP net loss and non-GAAP net loss per share were $5.0 million and $0.04, respectively.
For the quarter ending June 30, 2024, AMPL's revenue is expected to increase 6.2% year over year to $71.99 million. For the quarter ending December 31, 2024, EPS is expected to increase 10.6% year over year to $0.04. EPS has beat consensus estimates each of the past four quarters.
The stock has fallen 2.4% over the past month, closing at $8.21 in the last trading session. The 12-month target price of $11.36 is Potential increase of 38.4%.
AMPL POWR Rating It reflects the company's outlook. The stock has an overall rating of C, which equates to Neutral in our proprietary rating system. POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
AMPL has a Growth rating of B. It is ranked 43rd out of 135 stocks. Software Applications industry.
click here Access additional AMPL ratings (Momentum, Stability, Sentiment, Quality, Value).
Stock #2: Weave Communications, Inc. (Weave)
WEAV provides a customer experience and payments software platform in the U.S. and Canada that enables small and mid-sized healthcare businesses to maximize the value of patient interactions and minimize the time and effort spent on manual and routine tasks.
WEAV announced the release of an enterprise experience created and tailored for group and enterprise healthcare operations on June 26. The new solution is designed to help multi-location operations, such as dental service organizations (DSOs), vision, veterinary and medical groups, standardize, drive greater efficiencies and accelerate revenue cycle management.
WEAV's asset turnover ratio over the trailing 12 months is 0.90x, which is 44.4% higher than the industry average of 0.62x. Additionally, the stock's gross profit margin over the trailing 12 months is 68.82%, which is 40.4% higher than the industry average of 49.01%.
WEAV's revenue for the first quarter ended March 31, 2024 was $47.17 million, up 19.2% year over year. The company's gross profit was $32.99 million, up 24.3% year over year. Additionally, the company's total current liabilities were $68.26 million as of March 31, 2024, compared to $72.85 million as of December 31, 2023.
Analysts expect WEAV's second-quarter (ending June 2024) revenue to grow 16.8% year over year to $48.67 million. Additionally, the company has beaten consensus estimates for revenue and EPS for each of the past four quarters.
WEAV shares have risen 18.2% over the past nine months and closed the last trading session at $8.98. The 12-month target price of $15 is 67% potential upside.
WEAV's solid fundamentals are reflected in its POWR Ratings, with an overall rating of B, which equates to a “Buy” in our proprietary rating system.
The stock has a sentiment grade of B. WEAV is ranked 37th in its same industry.
In addition to the above, WEAV is also recognized for growth, value, stability, quality, and momentum. See all WEAV reviews here.
Stock #1: Enfusion, Inc. (Enfun)
ENFN provides software-as-a-service solutions to the investment management industry across the United States, Europe, the Middle East, Africa and Asia Pacific.
ENFN's asset turnover ratio over the trailing 12 months is 1.56x, which is 150.9% higher than the industry average of 0.62x. Additionally, the stock's gross profit margin over the trailing 12 months is 66.68%, which is 36.1% higher than the industry average of 49.01%.
For the first quarter ended March 31, 2024, ENFN's total revenue increased 17.3% year over year to $48.05 million. Gross profit increased 15.2% year over year to $31.88 million. Additionally, the company's total current liabilities were $17.41 million as of March 31, 2024, up from $31.49 million as of December 31, 2023.
ENFN's revenues for the fiscal year ending June 2024 are expected to be $49.97 million, up 17% year over year. EPS are expected to be $0.06, up 156.8% year over year. Additionally, the company has surpassed consensus earnings estimates in three of the last four quarters, which is great to see.
The stock has fallen 1.8% over the past five days, closing at $8.37 in the last trading session. The 12-month target price of $10 is Potential increase of 19.5%.
ENFN's POWR Ratings reflect a positive outlook. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system. ENFN is ranked 36th on the same rankings. industry.
In addition to the POWR Ratings above, you can also access ENFN's Ratings. here.
What next?
Check out these 10 widely held stocks that our proprietary model suggests could fall substantially.Death Trap” Stocks lurking in your portfolio:
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AMPL shares were trading at $8.49 per share on Thursday afternoon, up $0.28 (+3.41%). Year-to-date, AMPL is down -33.25%, while the benchmark S&P 500 index is up 17.94% over the same period.
About the Author: Nidhi Agarwal
Nidhi's passion for capital markets and asset management led her to pursue a career as an investment analyst. She has a bachelor's degree in finance and marketing and is working towards the CFA program. Her fundamental approach to stock analysis helps investors identify the best investment opportunities. Learn more…
