Oracle Corporation (NYSE:ORCL) and Zendesk Inc. (NYSE:ZEN) tend to garner more attention, but small cap Tangoe Inc. (NASDAQ:TNGO) is the better opportunity.
For the unfamiliar, Tangoe Inc. is a "leading global provider of Connection Lifecycle Management software and services to a wide range of global enterprises and service providers. The company's Connection Lifecycle Management technology, Matrix, is an on-demand suite of software and services designed to turn on, manage, secure, and support various connections in an enterprise's communications lifecycle, including mobile, fixed, machine, cloud, social, and IT."The self-characterization of "leading" might be a little, well, misleading. Though somewhat indirect rivals, the aforementioned Oracle generated $38 billion on cloud and SaaS sales over the past twelve months, while the much smaller Tangoe only did $212 million worth of business for the same timeframe performing similar services. The point is still taken though - TNGO has a good product, and it's getting better all the time.
More important to investors, Tangoe is turning a superior product into a real growth machine.
As with any outlook, investors should take these projections regarding TNGO with a grain. On the other hand, it's not as if analysts simply roll the dice to determine what the future likely holds. These outlooks are based on thorough and ongoing research.
The prod for such big growth? A lot of it may be founded on the newly-launched MatrixCloud solution and similar subsequent of cloud-based services.
The MatrixCloud enables the connected enterprise to centralize and control Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) cloud expenses, while providing visibility, tracking, auditing and chargeback capabilities for cloud license, expense and capacity management.
It's an impressive leap forward, but the company has already noted it's just the first of five such product launches in the hopper.
With all of that being said, the primary reason a newcomer might want t o wade into TNGO now as opposed to stepping into an Oracle Corporation or Zendesk Inc. position is the fact that the stock is finally starting to move higher after a steep - and likely overdone - selloff.
The image below is what it is. This week marks the second week TNGO has closed above the 200-day moving average line (green) after breaking above a falling resistance line (dashed) three weeks ago. This is a new paradigm.
The MatrixCloud enables the connected enterprise to centralize and control Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS) and Infrastructure-as-a-Service (IaaS) cloud expenses, while providing visibility, tracking, auditing and chargeback capabilities for cloud license, expense and capacity management.
It's an impressive leap forward, but the company has already noted it's just the first of five such product launches in the hopper.
With all of that being said, the primary reason a newcomer might want t o wade into TNGO now as opposed to stepping into an Oracle Corporation or Zendesk Inc. position is the fact that the stock is finally starting to move higher after a steep - and likely overdone - selloff.
The image below is what it is. This week marks the second week TNGO has closed above the 200-day moving average line (green) after breaking above a falling resistance line (dashed) three weeks ago. This is a new paradigm.
And yes, there's room for TNGO to keep rising. The forward-looking P/E of 15.1 is a fair price, given the growth outlook, but may actually underestimate the true growth potential given a whole new suite of cloud products in the lineup.
No comments:
Post a Comment