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Here is Why Growth Investors Should Buy Tyler Technologies (TYL) Now
Tyler TechnologiesTyler Technologies(US:TYL) zacks.comยท2024-05-24 17:46

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying strong candidates involves significant risk and volatility [1] Group 1: Company Overview - Tyler Technologies (TYL) is currently highlighted as a recommended growth stock based on the Zacks Growth Style Score system, which evaluates a company's growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2][10] Group 2: Earnings Growth - Historical EPS growth for Tyler Technologies stands at 10.5%, with projected EPS growth of 17.1% for the current year, surpassing the industry average of 12.6% [5] - Earnings growth is a critical factor for investors, as it often correlates with stock price gains [4] Group 3: Cash Flow Growth - Tyler Technologies has a year-over-year cash flow growth of 0.2%, which is above the industry average of 0.1% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 14.6%, compared to the industry average of 13% [7] Group 4: Earnings Estimate Revisions - Recent upward revisions in current-year earnings estimates for Tyler Technologies indicate a positive trend, with the Zacks Consensus Estimate increasing by 5.4% over the past month [9] - Trends in earnings estimate revisions are strongly correlated with near-term stock price movements, making this a significant metric for investors [8] Group 5: Investment Potential - Tyler Technologies has achieved a Growth Score of A and a Zacks Rank of 2, suggesting it is a solid choice for growth investors [10][11]