[Editor Note: All prices and valuations in this article were calculated as of market close 5/12]
The ETR universe is taking it on the chin, with the median stock down ~30% YTD. The most recent macro data (sourced from 1100+ IT decision makers) showed IT spend growth for 2022 vs. 2021 at 6.7%, a reduction from expectations of 8.3% captured just three months prior at the end of last year. Downward IT budget revisions, coupled with fears of slowing economic growth, has investors fleeing high growth, highly valued enterprise technology companies.
Luckily, the ETR platform allows users to efficiently screen through a universe of 330+ enterprise technology companies using both financial metrics and forward-looking spend data to find diamonds in the rough.
With investors throwing the baby out with the bathwater, below we screened for vendors in ETR’s universe who are seeing YTD stock returns down more than the universe median, are well-positioned (high Net Spend Scores), and seeing further improvement both survey-over-survey and year-over-year.
Markets, like horror shows, are full of surprises. Just when you thought Jason was dead... he resurfaces out of the lake and machetes a couple more campers. With that in mind, below is a screen for vendors that are still at risk, seeing larger than average declines in spending intent both survey-over-survey and year-over-year.
Irrespective of your investment thesis, ETR allows you to pinpoint a targeted list of companies that may present strong buying opportunities, or in contrast, have the potential for a lot more downside in an environment where even the best of performances doesn't currently impress investors. Either way, you should try it out for yourself. Start your journey today with a free trial of ETR.