Tyler Technologies (TYL) Gains But Lags Market: What You Should Know

Tyler Technologies (TYL) closed the most recent trading day at $362.20, moving +0.34% from the previous trading session. This change lagged the S&P 500's 0.69% gain on the day. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 0.2%.

Coming into today, shares of the information management software provider had lost 9.14% in the past month. In that same time, the Computer and Technology sector lost 14.62%, while the S&P 500 lost 9.94%.

Tyler Technologies will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $1.87, down 6.97% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $465.51 million, up 1.06% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $7.44 per share and revenue of $1.86 billion. These totals would mark changes of +5.98% and +16.38%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Tyler Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% lower. Tyler Technologies currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Tyler Technologies is currently trading at a Forward P/E ratio of 48.52. Its industry sports an average Forward P/E of 22.19, so we one might conclude that Tyler Technologies is trading at a premium comparatively.

The Business - Software Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 203, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.