Savvy Trades and Investments

[SSKILLZ1]

PRGS

Brought PRGS today, at $54.49 here is what I like.

Software Stocks Generally get relatively high PE's so to get a software company at about a little over 10x earnings guidance of $5.00-5.12 for FY 25. Seems waaaaaaaaaaaaaaay to cheap to me. I think PRGS deserves a 15 Multiple and generally they tend to be conservative. Hence I expect about $5.30-5.50 in reality this year. Hence I feel FV is about $80.

PRGS sold off on the disappointing, but expected overly conservative guidance the company tends to give Last year this time, they gave guidance which they actually turned out beating by about $0.25 more than the high end. I expect about the same will occur this year, but with earnings you never know.

PRGS Has a good Track Record of EPS Growth

 
  FY 25 $5.00-5.12 estimates.  
  FY 24 $4.93  
  FY 23 $4.35  
  FY 22 $4.13  
  FY 21 $3.87  
  FY 20 $3.09  
  FY 19 $2.69  
  FY 18 $2.19  
 

PRGS is really badly beaten up RSI is about 18, and is very close to support. Hence I feel we are getting a pretty good entry point as well. Will buy more on weakness. All is just my opinion, and I could always be wrong though.