10X Opportunities in Expanded Tech-Software Sector (IGV) — Enterprise Software Architecture
What is Enterprise Software Architecture? Enterprise software architecture refers to an architecture developed for the organized growth and development of an enterprise’s information technology (IT). It focuses on the long-term evolution of IT systems, rather than simply on the procedures being used today.
iShares Expanded Tech-Software Sector (IGV) has been leading the way for the tech industry delivering a 6.68X move in the last 10 years.
Application software was the biggest sector exposure at about 56% of assets. Systems software and interactive home were the next two largest weightings at 33% and 8%, respectively. The top five holdings, which represented nearly 40% of the 94-stock portfolio, were: Salesforce.com(CRM), Microsoft, Adobe (ADBE), Oracle (ORCL) and Intuit.
Outstanding Earnings Growth For Sector
Superb stock gains in the sector are the product of unrelenting demand for software to protect networks, connect workforces, handle massive data and control gargantuan customer databases. The average company in the iShares Tech-Software ETF had a 73% surge in EPS in the most recent quarter reported. The median increase was 33%.
Top holdings :
CRM SalesForce — 30X
ETFs that are heavy on salesforce.com are iShares Expanded Tech-Software Sector ETF IGV, First Trust Dow Jones Internet Index FDN, Entrepreneur 30 Fund ENTR and First Trust ISE Cloud Computing Index Fund SKYY (read: Another Cloud Computing ETF in the Making).
MSFT Microsoft — 6.7X
Adobe (ADBE) 6X
Oracle (ORCL ) — 3X
Intuit (INTU) — 11X
Service Now (NOW) -10X
Red Hat (RHT) — 20X
Autodesk (ADSK) 12X
Workday (WDAY) -3X
Palo Alto Networks (PANW ) — 5X
Splunk Network (SPLK) -4X
Citrix Systems (CTXS) — 2X
Synopsys (SNPS) — 6X
Cadence Design Systems (CDNS) — 20X
Symantec (SYMC) -1X
VMWare (VMW) — 3X
SS&C Technologies (SSNC)-7.8X
PTC Inc (PTC) -14X
Open Text (OTEX) — 3X
Tableau Software (DATA) — 2X
- ) Hold on to a core position of 10X capable stocks and then surround it with trade-around positions.
- ) Netflix (NFLX), Splunk (SPLK), ServiceNow (NOW), Veeva Systems (VEEV) and Atlassian (TEAM).- Top Bought by Best Mutual Funds in USA. — MERIT FURTHER STUDY. Here’s a list which should help you find many 10X opportunities.
Splunk Stock Leads Software Stocks
With software currently holding the №1 ranking among IBD’s 37 sectors, it’s not surprising that software stocks led the list. Splunk, Atlassian, ServiceNow, Palo Alto Networks (PANW), Paycom Software (PAYC), Salesforce.com (CRM), and 20 other software companies made the grade.
In a further sign of institutional interest in the field, four of the top 10 industry groups hail from the software sector: enterprise software, database software, enterprise software, specialty enterprise software, and security software.
Of about 90 stocks in the fund, 23 are up more than 30% in 2019. Coupa Software (COUP), for one, climbed more than 50% and is extended from a Jan. 31 breakout.
All these names merit in-depth study.