JDA Software Group, Inc. (JDAS) recently hit a new 52-week high just above $28 on a bullish next-year estimate and strong Q3 results from late October.
Company Description
JDA Software Group, Inc. provides specialized business management software solutions in the United States and domestically. The company was founded in 1985 and has a market cap of $949 million.
Although sales were mostly even with last year at $96 million, earnings came in better than expected at 37 cents per share, 4 cents ahead of the Zacks Consensus Estimate.
Margins and Balance Sheet
The company’s services segment stood out as a strong performer, with sales up 16% from last year to $33.6 million. The group also expanded its margins to 26% from 21%.
JDA’s also strengthened its balance sheet, boosting its cash and equivalents by more than $50 million from last year to $85 million. The company is also in the very favorable position of having no debt.
Estimates
Estimates have remained in elevated territory for the last few months, with the current year at $1.45. The next-year estimate is up 11 cents in the last 90 days to $1.75, a solid 21% growth projection.
JDAS still looks reasonably priced after recent gains, trading with a forward P/E of 19X.
The Chart
Shares of JDAS spent most of 2009 trending higher, recently hitting a new 52-week high just above $26. If shares pull back look for support at the previous breakout area. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
