Stock (Symbol) |
Upland Software (UPLD) |
Stock Price |
$27 |
Sector |
| Technology |
Data is as of |
| March 6, 2018 |
Expected to Report |
| Mar 8 |
Company Description |
 Upland Software is a provider of cloud-based enterprise work management software. The Company provides a family of cloud-based enterprise work management software applications for the information technology, process excellence, finance, professional services and marketing functions within organizations. Its software applications serve a range of enterprise work management needs, from strategic planning to task execution. It services customers ranging from corporations and Government agencies to small- and medium-sized businesses. Its customers operate in a range of industries, including financial services, retail, technology, manufacturing, education, consumer goods, media, and telecommunications, Government, food and beverage, healthcare and life sciences, chemicals and travel and hospitality. Source: Thomson Financial |
Sharek’s Take |
 Upland Software (UPLD) is a provider of cloud-based work management software to more than 2500 clients and over 250,000 users. The company has three product families: Project & IT Management. Workflow Automation, and Digital Engagement. Upland expands its product offerings (and client base) by acquiring other software companies. UPLD has grown revenues every year since it started in 2012 and just became profitable in 2016. That’s key because many big stock market winners begin their ascent when the company starts to make a profit. In fact, profits are growing at triple-digit rates right now. What’s nice is the stock has a P/E of just 22. That’s cheap. This company reminds me of Workday, or Salesforce and both of those stocks have very high P/Es. If I put a Fair Value of 45x on 2018 earnings estimates I get a Fair Value of $$57 a share for UPLD — more than double the current price. But the most interesting thing is this stock broke out on high volume this past Monday, with the company set to report earnings on Thursday. So it seems like somebody did their homework on the stock over the weekend and made a big investment just before the company is set to report. I’m inclined to think the report will be good, and perhaps the stock will pop on Friday morning. This week’s volume is the highest since the week the stock had its IPO. It seems like this could be the beginning of something good, and I will add UPLD to the Growth Portfolio and Aggressive Growth Portfolio today. |
One Year Chart |
 Nice looking chart, with a long bast then a breakout on high volume. Last qtr UPLD had 36% revenue growth and 127% profit growth, which beat analyst estimates of 118%. Qtrly profit Estimates are 145%, 133% , 20% and 32% for the next 4 qtrs. The Est. LTG is a nice 20% a year but I envision this company growing 30% to 35%. The P/E of 22 is so cheap for a software stock, particularly one growing profits in the triple-digits. |
Fair Value |
 I’m starting my Fair Value at 45x earnings. That gives the stock huge upside from here. Do note the 2019 profit estimate is slightly above 2018’s. I think that will increase over time. Especially if Upland makes an acquisition or two. |
Bottom Line |
 Upland Software is a young company in a great sector. The original breakout a year ago was the beginning of a double for this stock. I feel this week’s breakout has to potential to be the beginning of another big move higher. I think this stock was under the radar and has now gotten some institutional sponsorship. That’s good. UPLD will be added to the Growth Portfolio and Aggressive Growth Portfolio where it will rank 16th in the Power Rankings. I’m looking forward to seeing what the stock does Friday morning. |
Power Rankings |
Growth Stock Portfolio
16 of 38Aggressive Growth Portfolio N/AConservative Stock Portfolio N/A |
