Teradata Corp. (NYSE:TDC)

CAPS Rating: 4 out of 5

Provide data warehousing services

Recs

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Player Avatar TMFEnochRoot (99.77) Submitted: 11/8/2012 11:55:11 AM : Outperform Start Price: $63.72 TDC Score: -74.45

Teradata is the market leader in the data analytics industry, and this area is the #1 priority for new spending by corporate Chief Technology Officers these days, because it’s a spot where they can get a really high return on their investment, improving how they serve customers and ultimately improving profits. Teradata is purely focused on this analytics market, and is probably the best positioned company out there in the corporate technology world to benefit from this multi-year industry trend.Data analytics is an industry that’s dependent on big-ticket, lumpy sales for a big portion of its total sales opportunity. That means analysts and investors can get skittish when Teradata has the inevitable lumpy results quarter to quarter that don’t line up nicely with their spreadsheets. I think this past quarter had a little bit of that going on and the selloff in the stock since then has given us a good spot to add to a Teradata investment as the company rides this multi-year industry growth trend.

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