You might already know how profitable “Big Data” is.
According to the International Data Corp., Big Data and analytics are set to reach $189.1 billion in revenue this year. And that revenue is expected to jump 45% to $274.3 billion in the next three years.
What you might not know is that Big Data isn’t just for industries like marketing, manufacturing, and healthcare.
The Big Data stock to buy we’re bring you today, in fact, is using Big Data and analytics to transform five major sectors that affect your life on a daily basis…
- Construction: Our pick provides solutions that unite hardware, software, and services to guide builders from start to finish. That includes tools for architecture, machine control, project management, and even HR and payroll.
- Agriculture: Just like there are smart homes now, there are smart farms too. And this company helps agricultural companies monitor and map their entire operations, with extensive analytics to ensure maximum efficiency and production.
- Transportation: In the transportation sector, this company’s solutions manage the tracking, dispatch, scheduling, and analytics for over 1 million vehicles across the globe. We’re not just talking about managing trucking fleets here, but also rail projects and off-highway vehicles for large civil projects.
- Geospatial: You might not think about this sector much, but our pick’s geospatial solutions aid in mapping and GIS, land surveying, and land administration. These processes are critical for those “invisible” but essential industries like forestry, mining, drilling, and waste management.
- Natural Resources, Utilities, and Government: Whether it’s the water in people’s taps, land management, forensics, or the management of military fleets, this company has myriad solutions to keep governments national and local running smoothly.
In addition to five strong reasons to buy this stock, we’ve got another one: This stock just received a top score from our Money Morning Stock VQScore™ system.
But the “buy” indicators don’t stop there. The truth is that the market has let this gem slip through the cracks. And that means you can grab it now at a great price – and possibly score a 164% gain.
With More Than 2,000 Patents, This Company Makes the Whole World Run More Smoothly
Trimble Inc. (NASDAQ: TRMB) began humbly in a space above Silicon Valley’s Los Altos theater in 1978. The three Hewlett Packard employees who started the company were looking to develop technology for location-tracking and navigation.
At first, the technology was ground-based and limited in scope. But Trimble’s founders quickly picked up on the satellite-based technology that was just then in its infancy.
Before they were finished, they would effectively launch the global positioning system (GPS) industry.
Thanks in large part to Trimble’s innovations, GPS would have applications not just in marine navigation and the military, but also land surveying, transportation, wireless communications, and more.
That innovation, along with a steady stream of strategic acquisitions and partnerships over the years, have allowed Trimble to grow to 11,500 employees in 40 countries, with more than 2,000 unique patents and more than $3 billion in annual sales.
One of Trimble’s most successful products is its cloud-based e-Builder software that helps manage the entire lifecycle of the construction process. During the design phase, e-Builder can keep track of regulations and approvals by all the relevant agencies and make tentative changes to a design before final approval is given. Then the software tracks and sorts bids and automates the response process.
When it comes time to build, e-Builder handles scheduling, cost management, and anything else that might arise during the process. Even when construction is finished and it’s time for tenants to move in, Trimble’s product assists with operations and maintenance over the lifespan of the building.
It’s easy to see why developers and civil engineers find Trimble’s products indispensable. And the company brings easy-to-use, data-based productivity solutions like e-Builder to all the industries it serves.
In other words, Trimble is one of those “invisible” companies that you rarely hear about or interact with directly, but is making your life easier, safer, and more inexpensive every day.
Best of all, the stock is now available at a steep discount…
Now Is the Time to Buy TRMB
Trimble shares took a 14% one-day dive after an earnings miss in late July, and the price has not recovered.
But to put that drop in perspective, the company missed expectations by all of $0.01.
This is for a company that boosted sales by 18% last year and more than doubled net income from $121.1 million to $282.8 million. Earnings per share, according to FactSet, is projected to rise for each of the next three years.
Even as the market has missed the boat on Trimble stock, analysts still see the value left on the table. Out of 10 analysts tracked on FactSet, seven call TRMB a “Buy” or “Overweight.” And Rob Wertheimer at Melius Research has set a price target of $54, nearly 45% higher than the current price.
That assessment is borne out – and then some – by some of Trimble’s valuation metrics. Both its price-to-sales ratio and price/earnings-to-growth (PEG) ratio for the next 12 months come in between 80% and 85% of the industry average.
And Trimble’s price-to-book ratio, at 3.36, comes in at just 38% of the industry average.
That would translate to a 164% gain for TRMB to be valued fairly compared to its peers.
Enjoy the quick pop and then hold onto this one as it continues to transform some of the most essential industries in the world.
— Stephen Mack
Source: Money Morning