If Ralph Lauren is having a good year, Teradata (TDC) is having a phenomenal one. The $13 billion IT analytics company has seen the value of its shares increase by 55.6% since the first trading day of 2012. With rising analyst sentiment in shares this week, there's reason to expect that trend to continue.
Teradata has built a lucrative business on developing data warehousing solutions for large companies. For years, TDC owned the data storage business, courting some of the biggest clients in the world. But now, competition is getting stepped up with rivals popping up from less attractive businesses like PC manufacturing. TDC's first-to-market status puts a big ace in the firm's pocket -- it gives TDC familiarity with clients' nuanced data warehousing solutions and a store of proprietary technology that's more advanced than most competitors can compete with.Ultimately, a rising tide in data warehousing should lift all ships. With more transactions than ever happening digitally, firms need the capacity to securely store everything from credit card purchases to text messages for their customers. That should ensure that TDC continues to see upward trajectory in its revenues and profitability.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV