Dynatrace named top software pick while Domo and Asure Software flagged as risky

StockStory··Read original
2▲1 ▼2Impact / 5
Summary · why it matters

StockStory identified Dynatrace as a resilient software stock with promising prospects, while advising caution on Domo and Asure Software. Dynatrace, with an $11.77 billion market cap, benefits from 24% average billings growth, an 81.7% gross margin, and a 26.2% free cash flow margin. Domo faces underwhelming 1.3% billings growth and a projected 1.7% sales decline, trading at 0.5 times forward price-to-sales. Asure Software's 12.3% annual growth lagged peers, with estimated growth slowing to 10.4% and a weak 5.3% free cash flow margin, trading at 1.4 times forward price-to-sales.

Impact on assets 3

Cloud & Digital Infrastructure± Mixed · 2 stocks
Asure Software Inc
ASUR
▼ NegativeDemandrelevance

Asure Software's 12.3% annual growth lagged peers, with estimated growth slowing to 10.4% and weak free cash flow margin.

Dynatrace Holdings LLC
DT
▲ PositiveDemandrelevance

Dynatrace benefits from 24% average billings growth, high gross margin, and strong free cash flow margin.

Artificial Intelligence▼ · 1 stocks
Domo Inc
DOMO
▼ NegativeDemandrelevance

Domo faces underwhelming 1.3% billings growth and a projected 1.7% sales decline.