The Best Tech Stock to Buy in December 2018

Some tech companies sound exciting, promising cutting-edge innovations and new ways of doing things.

Other tech companies don't. But they can often be the most profitable ones to own.

Today, we're separating the stocks with serious potential from the poseurs, giving you the best tech stock to buy in December.

tech stocks

This company reshaped the ways thousands of companies do business. And it's one of the leaders in the booming "information analytics" sector.

Analytics is one of the revolutionary concepts that rewrote the rules of baseball teams.

In Michael Lewis's "Moneyball: The Art of Winning an Unfair Game," Oakland Athletics, strapped for money, used this method to compete with the wealthier teams like the New York Yankees and the Boston Red Sox.

In a nutshell, they transitioned from scouting using intuition and hunches to using scientific data analysis.

That same innovation is now being employed by thousands of companies across the world. Everyone wants the advantage a deep dive into data can bring.

The stock we're going to show you today helps companies in analyzing their data to cut down on expenses and expand their productivity. The company sells data analysis software based in the cloud. And the company is booming.

The company has over 12,000 employees. It has 120,000 customers. The end users number 100 million. Yearly revenue is almost $3 billion.

The $10 Company at the Center of a Revolution: It's inked four deals with huge players in its sector, and it's holding the keys to a potential global product. Click here to learn more...

It boasts a huge customer list, including Deloitte, Hyatt Hotels Corp. (NYSE: H), Microsoft Corp. (NASDAQ: MSFT), Air France-KLM (OTCMKTS: AFLYY), The Port Authority of New York and New Jersey, Anthem Inc. (NYSE: ANTM), Timberland, and U.S. government agencies like NASA.

The best part is, you're getting one of the leading companies in the space, with contracts all over the world, and it's flying under the radar.

It's also why our best tech stock to buy in December could nearly double your money in 2019...

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The Best Tech Stock to Buy in December 2018

OpenText Corp. (NASDAQ: OTEX) is a 25-year-old Canadian data analytics firm. It got started with CD-ROM products but has continually reinvented itself and now focuses on software as a service using the cloud.

Currently, OTEX's software provides analytic software to customers to help improve their performance and efficiency.

One of its customers, for example, is Draegerwerk AG & Co. (OTCMKTS: DGWPF), a Germany-based healthcare firm with over 13,000 workers globally.

Because of the size of the company, Draeger wanted to focus on improving its management of anesthesia products.

The OpenText LiquidOffice products allowed Draeger to automate its processes for workflow and expedite patient information in its system. It allowed the company to drastically reduce redundancies and increased consistency. The number of procedures that had to be canceled fell as a result, saving Draeger money.

Another OTEX success story is Bernalillo County, New Mexico. It has the highest population density in the state. Because of that, Bernalillo County has a huge number of invoices to process - so many that the employees doing data entry couldn't process them fast enough.

But then the government adopted two OTEX products, Capture Center and Vendor Invoice Management. The invoices could then be stored in a central database and processed automatically.

Those successes are turning into bigger profits for OTEX.

OTEX's sales have advanced by double digits for seven consecutive years. Its earnings per share have climbed steadily since 2011 - more than tripling in those seven years. FactSet estimates that this growth will remain steady through 2022 at least.

OTEX's cash flow from net operations increased a robust 55% this fiscal year from year-prior levels. It's now over $1 billion.

FactSet tracks 16 analysts who follow OTEX. Fifteen of them rate the stock "Buy" or "Overweight." Their target price average is roughly 30% higher than the current share price. In fact, two analysts at Echelon Wealth Partners and National Bank Financial forecast an approximately 50% rise.

But that's still too conservative

The company's price/earnings-to-growth (PEG) ratio for the past 12 months is only about 53% of fair value. That metric suggests an 88% rise in the stock in the fairly short term.

Finally, OTEX investors enjoy a 1.84% dividend yield, which adds extra income for shareholders even as the price surges.

This Company Could Be Holding the Biggest Tech Breakthrough of the DECADE

Global Market Insights sees this market worth over $80 billion by 2024. Technology giants like Apple and Microsoft are making huge multimillion-dollar investments in this space. Defense contractors and the U.S. military are using this market's technology to give soldiers a competitive "advantage at sea, land, and air." And one company is at the center of it all. See it here...

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