[The Best Growth Stock] That You've Never Heard Of

The stock of this niche software leader is undervalued. Picks from the Editor SPONSORED (Newsletter Continues Below) Sponsored [Build Wealth 10x Faster By Doing This]( As you know, the stock market has been volatile lately, and there's a lot of uncertainty in the air. But we want to assure you that this is not the time to panic. In fact, it's the time to be buying stocks.[Go HERE to Get Their Names And Ticker Symbols]( By clicking the link you are subscribing to the Summa Money Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( The Best Kept Secret in Wide-Moat Growth Stocks  Hi Traders,  Tyler Technologies, the pace-setting player in the rather sedate, yet underserved field of government operational software.  Now, I'm of the opinion that Tyler is comfortably cruising down a decade-long runway with the potential for an annual 10% bump in their top-line growth.  This particularly rings true given the increasing appetite for software as a service and the pressing urgency to haul local governments’ dinosaur-age enterprise resource planning systems into the 21st century.  Tyler's primary role is managing two central systems that keep the gears of government turning: enterprise resource planning and court management.  These systems handle an array of tasks, from financial management and human resources to tax billing and asset management. They cater to the needs of cities, counties, schools, courts, and other local government bodies.  Many of these systems, believe it or not, could be older than your favorite vintage wine, using software code that could be rightfully called prehistoric.  And with no fresh wave of coders versed in these antiquated languages, keeping these legacy systems chugging along is starting to look like a pipe dream.  My bet is on Tyler swooping in to replace about half of these systems in the near future.  As for Tyler’s core financial metrics? They're pretty impressive.  A fair value estimate of $475, a 4-star rating, a stable wide economic moat, and strong intangible assets (namely, their proven ability to serve public institutions and their unique portfolio) make Tyler a strong contender in the field.  Switching costs are likely to be a significant deterrent for customers thinking about hopping onto a new software platform, considering the time, expense, and operational risk involved.  Now, let's talk numbers. Tyler's $475 fair value estimate translates to a fiscal 2023 enterprise value/sales multiple of 11 times, an adjusted price/earnings multiple of 45 times, and a 1% free cash flow yield.  The projection suggests a five-year revenue compound annual growth rate of 8%. I anticipate a general rebound around 2024, with subscription growth expected to balance out license declines.  As Tyler transitions towards a subscription business model, I foresee non-GAAP operating margins rebounding to approximately 30% by 2027.  However, no investment comes without risks. While Tyler enjoys a relatively protected position due to its unique market, there is always the threat of competition.  The company could also face hiccups in its plans to continue on an acquisitive path, given the challenges that could arise from integrating new acquisitions. Risks related to hiring software engineers and potential data breaches also exist.  But let's not get too gloomy. The positive takeaways on Tyler are just as, if not more, compelling. Tyler is unquestionably the leader in the quest to modernize a large, underserved market of local governments and public institutions.  Their recent acquisition has primed their public safety solutions business for acceleration, and I believe the NIC deal to be incredibly synergistic. Also, the shift towards a software-as-a-service model is likely to rope in more customers and extend Tyler's growth trajectory.  The skeptics will argue that Tyler's revenue growth hasn't been particularly stellar in comparison to other software companies in recent years.  They'll also point to the challenges Tyler has faced while integrating several large deals.  Plus, they'll bring up the point that upselling isn't as big a part of the investment case for Tyler as it is for many other software stocks.  At the end of the day, while Tyler Technologies is in a class of its own, it isn't immune to the same challenges other companies face.  However, I firmly believe in its potential for growth, and would urge you to consider the broader picture and potential for success. That being said, as with any investment, tread with care and make sure to do your due diligence.  Keep on keeping up!  John @ Traders on Trend  (In the next article: Are Traders Betting on Positive Inflation News for the Months Ahead? Find out below! 👇) Sponsored [This Trade Has Paid Out 99.1%]( We’ve made THIS simple trade over and over again… for years. The result? It’s cashed in winning trades 99.1% of the time. We call it the “310F Trade.” Getting into this “rinse and repeat” trade each Tuesday… could double your money by Friday. Sound too good to be true?[See how we’ve done it, week after week...for YEARS]( [Privacy Policy/Disclosures]( Check the Free Presentation Today ☝ SPONSORED Traders' Perspective: Betting on Positive Inflation News for the Months Ahead  Allow me to introduce you to Tim Magnusson, a name you probably want to jot down if you're interested in U.S. inflation.  Currently the chief investment officer of the fixed income relative value strategy at Garda Capital Partners, Magnusson was the fortune teller who accurately foresaw the annual headline rate from the consumer price index soaring above 7% at the end of 2022.  I know, uncanny right? But hold on, his crystal ball has more to reveal.  These days, Magnusson has a hunch that the core CPI reading, the one that evicts food and energy from the party, will trail the annual headline rate's downward trajectory.  Now, I'd be remiss not to add the usual caveat that there's always an element of unpredictability about where core inflation will ultimately land.  But Magnusson and his team at Garda are confident inflation is gearing up for a downward spiral.  To give you some context, Magnusson shared his insightful observations on the very day four central banks in Europe all decided to crank up their interest rates.  So, naturally, the specter of persistent global inflation was reanimated in the minds of investors. It was also a day of mixed fortunes for major U.S. stock indexes and Treasury yields.  And if that wasn't enough to chew on, the spread on 2- and 10-year rates took a disconcerting dip to minus 100 basis points.  However, before you let inflation anxiety keep you up tonight, consider this: Fed Chairman Jerome Powell believes that inflation could mellow down without causing significant unemployment.  And he's not alone.  (article continues below) Sponsored [You Can’t Escape Inflation So Profit From It Here]( “Inflation is bad” – yeah we all get it. There’s nothing you can do to stop it though. If you can’t beat ‘em – join ‘em. That means learning to leverage inflation to build your wealth instead of devaluing it.[Claim Your Copy Of Our Research Report FREE]( By clicking this link you are subscribing to Conservative Investor News’s Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy [Privacy Policy/Disclosures]( SPONSORED  🔼 Pay attention, this is worth your time! ☝  (article continues)  Some traders of derivatives-like instruments known as fixings are anticipating the headline CPI rate to drop to 3% on a year-over-year basis for June and hover around that level until September.  It's important to note that core readings of inflation are the Fed's go-to metric as they provide a less distorted snapshot of inflation, sans the unpredictable mood swings of food and gas prices.  On that score, Magnusson's prediction might raise a few eyebrows, especially given that the Fed just recently penciled in two more quarter-of-a-percentage-point rate hikes for 2023, primarily due to stubborn core readings.  While the current inflation scene, with its pandemic-induced dynamics and high inflation rates in Europe, may suggest that price reductions are unlikely in the near term, Magnusson isn't the lone voice in the wilderness.  Gang Hu, an inflation trader at WinShore Capital Partners, reckons the fixings market is pointing to an approximately 2.5% core CPI rate for the next 12 months, a significant decrease from the 5.3% annual core CPI reading for May.  So, to boil it down to the essentials, Magnusson anticipates a deceleration in core inflation in the coming months.  He believes we're going to see the inflation fixings market adjust from a run rate of 0.4% per month to a leaner 0.2% heading into the second half of the year.  In essence, if the prints come in as predicted, it would be music to the ears of the Fed members who've been citing core inflation as a concern.  Now, you might wonder why this matters to you?  Well, if Magnusson’s view turns out to be accurate, it might just spark a fresh rally in stocks and tilt the inflation debate in favor of equity investors. So, while the future of inflation remains a bit hazy, it's certainly a space worth keeping an eye on.  And remember, Garda, with Magnusson at the helm, oversees more than $9 billion in institutional assets, so they're definitely no strangers to the inflation guessing game.  Disclaimer:  The material in this document is for informational purposes based on our proprietary research. It is not an offering, specific recommendation, or a solicitation of an offer to buy or sell any securities mentioned or discussed herein.  Any performance results discussed herein represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.  Due to the timing of information presented, any investment performance reflected within this document may be adjusted after the publication and distribution of this material. There can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this communication will be profitable, be equal to any corresponding indicated historical performance levels or be suitable for your portfolio.  Any investment results set forth in this document are not net of expenses and execution costs, nor do they account for other relevant trading or investment fees. Please visit tradersontrend.com/terms for our full Terms and Conditions.   [UNSUBSCRIBEÂ]( TradersOnTrend.com  COE MEDIA.   1126 S Federal Hwy Unit #827   Fort Lauderdale, FL 33316Â