Technology

One Huge Reason to Buy These Top Tech Stocks Now

When Wall Street analysts look for data points to reinforce and justify their views on a stock, much of it can found in the profit and loss or balance sheet statements. Orders and forward-looking estimates for the future are good tools to use. Branding and name recognition are huge when judging consumer awareness. One large measure of a company’s forward potential is often tracked by who is trying to hire the most new employees.

A new research report from RBC points out that aggregate job posting data for their software universe is up 12.1% for the June quarter, the largest sequential increase they have recorded over the past five years. They point to six top tech names that have increased their quarter-over-quarter job postings by an incredible 30%. Plain and simple, companies don’t hire people if business isn’t good and getting better.

The team at RBC believes that when sales prospects are increasing, a company is more optimistic about its outlook, which should translate into more job postings and in turn more employees and increased capacity. Higher capacity generally translates to higher sales, assuming productivity of new hires ramp in six to nine months.

The bottom line for our readers is a ramp-up in hiring now could make for blockbuster earnings in the first two quarters of next year for some of these top software stocks.

Here are the six software names that are ramping up their hiring, according to RBC.

Autodesk Inc. (NASDAQ: ADSK) forecast current-quarter and fiscal 2015 revenue above analyst consensus estimates, sending shares up to an all-time high on views its transition to a new software licensing model and cloud-based products are gaining traction and acceptance. The Thomson/First Call consensus price target for the stock is $59.13. Autodesk closed Monday at $56.17 a share.