The industry we're talking about today may not sound exciting. But the company we're going to share with you is drastically improving the way companies of all shapes and sizes are doing business. And it could nearly double your money within the next year.
Today, we're going to talk about "information analytics."
To get an idea of what a literal game-changer information analytics can be, think of how it revolutionized the game of baseball.
In "Moneyball: The Art of Winning an Unfair Game," author Michael Lewis described how the cash-strapped Oakland Athletics found ways to compete with the richest teams in the league like the Yankees and the Red Sox.
The key was to move away from the intuition-based scouting that ruled the game and defer to the numbers instead.
When the numbers said walks were more important than they had thought, they got players who took lots of walks. When the numbers said that stolen bases were a bigger risk than they were worth, they stopped trying to steal bases.
It didn't matter how they felt about it. They trusted the numbers, and it worked.
Our pick today is bringing that same kind of data-based efficiency to the business world, through a kind of information analytics called enterprise information management (EIM).
Just like the "Moneyball" approach, EIM works. It helps companies spend less and produce more. So it's no surprise this company's cloud-based EIM software is in huge demand.
We're talking a company with more than 12,000 employees, 120,000 customers, 100 million end users, and nearly $3 billion in annual revenue.
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Its extensive list of customers includes Microsoft Corp. (NASDAQ: MSFT), Air France-KLM (OTCMKTS: AFLYY), Deloitte, Hyatt Hotels Corp. (NYSE: H), The Port Authority of New York and New Jersey, Timberland, Anthem Inc. (NYSE: ANTM), and even NASA.
Most of those organizations, you'll notice, are not high-tech ventures. But as Money Morning Defense and Tech Specialist Michael Robinson says, every company is a tech company in the 21st century.
In other words, the organizations that don't incorporate tech into their operations get left behind. And this company is the one helping them stay competitive.
In spite of its impressive growth - 30% growth in earnings per share (EPS) in its fiscal year that ended in June - the stock got swept up in the recent market sell-off. It's down about 16% from its recent highs.
That means you can get it at a good price. Based on its metrics, you could bank a quick return of up to 88%.
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When OpenText Corp. (NASDAQ: OTEX) started out in Canada in the early 1990s, it was delivering its products via CD-ROM. As quaint as that sounds, it quickly picked up major international clients such as Oxford University Press and UBS Group AG (NYSE: UBS).
Today, OpenText's robust, cloud-based software delivers analytics to enhance engagement with customers, employers, and suppliers - and to improve efficiency and security across the board.
Plus, it can be incorporated into in-house software development and the Internet of Things.
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There may not be an organization on the planet that couldn't benefit from OpenText's products.
Take Bernalillo County for example. As New Mexico's most populous county, Bernalillo had a massive amount of invoices to process. The employees doing that processing were drowning in mind-numbing data entry.
That was until the county office adopted OpenText's Capture Center and Vendor Invoice Management products. Now the processors had a fully automated, central invoice database. The work became more efficient and more accurate, and it freed up the processing team to spend less time on boring, repetitive tasks and more time on validating, reporting, and analysis. And it could all be done with fewer full-time employees.
Then there's Draegerwerk AG & Co. (OTCMKTS: DGWPF), a family-run healthcare company in Germany with more than 13,000 employees worldwide.
With that big an operation, practically every aspect of patient care can become unwieldy. Draeger was specifically looking to improve its anesthesia management.
Thanks to OpenText LiquidOffice, the company was able to automate the workflow process and get patient information moving through the system much faster. It also eliminated duplication in the system. As a result, staff were able to be in the right place at the right time with more consistency, and the number of canceled procedures dropped accordingly.
Draeger's Senior Marketing Manager said of OpenText's solution, "It just doesn't make sense ... not to use this type of technology."
Finally, let's look at Ergo Hestia, the largest insurance company established in Poland's post-Soviet era. This is an enterprise dealing with a deluge of 30,000 documents per day.
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OpenText's Transactional Content Processing enabled Ergo to shift its paper archives to digital quickly and smoothly. The new centralized, searchable database led to a tenfold increase in claim-handling speed. That meant compensation was delivered to customers more quickly. Accordingly, customer service improved, and so did relationships with both customers and partners.
You can bet that more customers will be turning to Ergo Hestia in the future because of this simple solution offered by OpenText. That's why so many businesses are willing to buy OpenText products in order to streamline their operations.
No wonder the company has such stellar financials...
As we mentioned, OpenText shares have slipped about 16% since late September with the rest of the stock market. But that isn't slowing down its growth.
Sales have risen by double-digit percentages in each of the last seven years. And OpenText's EPS has risen every year since 2011, more than tripling in that time. According to FactSet, that growth is projected to continue through at least 2022.
And the company's net operating cash flow rose 55% in FY2018 from the year before, now passing $1 billion.
Of 16 analysts tracked by FactSet, 15 of them call OTEX a "Buy" or "Overweight." The average price target is about 30% higher than where it is now. And analysts at Echelon Wealth Partners and National Bank Financial project a rise of about 50%.
But OpenText's price/earnings-to-growth ratio for the last 12 months is just 53.2% of fair value. That suggests a gain of 88% in short order.
Plus, it offers a 1.83% yield.
You can enjoy what should be a nice short-term pop with this stock and then hold on to it for a long, long time. Making businesses run more efficiently is a service that's not going out of fashion anytime soon.
And since OpenText's addressable market essentially includes every business on the planet, the sky's the limit.
This tiny $10 company is at the center of the tech revolution. It's holding the keys to a product that could soon be used around the globe, and it just recently inked four major deals with HUGE players in its field. That means early investors could start reaping huge fortunes - not years from now - but in the months, weeks, or even days ahead. Read more...
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