Stock of the Day

July 30, 2019

Progress Software (PRGS)

$40.55
+$0.20 (+0.5%)
Market Cap: $1.65B

About Progress Software

Progress Software Corporation develops, deploys, and manages business applications in the United States and internationally. The company offers OpenEdge, an application development platform for running business-critical applications; Chef, a DevOps/DevSecOps automation software; Developer Tools that consists of software development tooling collection, including .NET and JavaScript UI components for web, desktop and mobile applications, reporting and report management tools, and automated testing and mocking tools; Kemp LoadMaster, an application delivery and security product offering cloud-native, and virtual and hardware load balancers; and Sitefinity, a digital experience platform foundation delivering intelligent and ROI-driving tools for marketers. It also provides MOVEit, a managed file transfer software for managing and controlling the movement of sensitive files and securing them both at-rest and in-transit; DataDirect, a secure data connectivity tools for Relational, NoSQL, Big Data and SaaS data sources; WhatsUp Gold, a network infrastructure monitoring software providing complete visibility of all network devices, servers, virtual machines, and cloud and wireless environments to find and fix network problems; Flowmon, a network security and visibility product with automated response across hybrid cloud ecosystems; Corticon, a decision automation platform to transform user experiences by streamlining and automating complex business rules; MarkLogic, a data agility platform to connect data and metadata; and Semaphore, a Semantic AI platform. The company offers project management, implementation, custom software development, programming, and other services, as well as web-enable applications; and training services. It sells its products to end users, independent software vendors, original equipment manufacturers, system integrators, value added resellers, and distributors. The company was founded in 1981 and is headquartered in Burlington, Massachusetts.

Today's Trend

Progress Software Corporation (NASDAQ: PRGS) shares are moving higher after the company delivered a strong fiscal Q2 report and raised its outlook, which is the main reason investors are bidding up the stock. The quarter showed earnings and revenue above expectations, and management highlighted improving demand tied to AI across its data, workflow, and infrastructure software offerings.

  • Progress Software beat Q2 estimates and raised full-year guidance, which typically signals stronger near-term growth and better earnings momentum. Article Title
  • Analysts remained constructive after earnings, with multiple firms reiterating buy/outperform views and citing upside to current price targets. Article Title
  • Oppenheimer called the quarter “solid,” while other coverage pointed to strong revenue growth and improved outlook commentary, reinforcing the earnings-driven rally. Article Title
  • Recent valuation-focused articles suggest PRGS still screens as reasonably valued versus peers, which may support the stock but does not by itself create a new catalyst. Article Title
  • Company commentary also showed some caution on cash and leverage, including a goal to target net leverage around 2.8x, which investors may watch even as results improve. Article Title
  • Some longer-term commentary still points to debt and sector competition concerns, suggesting the rally may depend on continued execution rather than a clean re-rating. Article Title

Overall, PRGS is up because investors are reacting to a beat-and-raise quarter, upbeat AI-related demand commentary, and supportive analyst reactions. The main offset is that leverage and valuation remain areas to monitor.

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