4 Tech Stocks That Could Trade Much Higher From Solid IT Spending

Callidus Software

This company could be somewhat of a hidden gem for investors. California-based Callidus Software Inc. (NASDAQ: CALD) is the self-described global leader in cloud-based sales, marketing, learning and customer experience solutions. Callidus Cloud’s Litmos mobile learning platform is the learning management system that people love to use. Litmos makes it easy for teachers and trainers to build courses, assign them to learners and accurately track the results.

Sunrun, the largest dedicated residential solar company in the United States, recently chose the Callidus Cloud division to automate the compensation process for paying its sales force. This is another company that the Oppenheimer analysts target as having the potential for an upward earnings revision.

While the Oppenheimer price target is $25, the consensus target is $20.89. The shares closed on Friday at $17.39.

Ellie Mae

This company may sound like a character from the Beverly Hillbillies, but Ellie Mae Inc. (NYSE: ELLI) is actually the leader in providing on-demand software solutions and services for the residential mortgage industry in the United States. Its mortgage management solutions streamline and automate the process of originating and funding new mortgage loans, facilitating regulatory compliance and reducing documentation errors. With the growth in the mortgage industry continuing a slow, but sure rebound, the demand for the company’s products have soared as lenders and originators cope with new rules and regulations.

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The company announced last week that it had signed a definitive agreement to acquire Mortgage Returns, a leader in on-demand customer relationship management (CRM) and marketing automation solutions for the mortgage industry. Bolt-on acquisitions like this continue to help the company compliment organic growth.

The Oppenheimer price target is set at $85, and the consensus target is lower at $82. The stock closed on Friday at $67.

Ultimate Software

This stock is owned by 41.2% of the top funds on Wall Street in a recent survey. Ultimate Software Group Inc. (NASDAQ: ULTI) is a leading provider of cloud-based human capital management (HCM) solutions, with more than 20 million people records in the cloud. Ultimate’s award-winning UltiPro delivers HR, payroll, talent and time and labor management solutions that connect people with the information they need to work more effectively.

The demand for predictive analytics in the area of HCM is rapidly increasing, as businesses are seeing the value of big data and data modeling across many areas of the business, such as expense management and inventory management. While the market cap of the stock barely stays in the small-cap range at $5.24 billion, the shares have had a solid year and the recent pullback gives investors a better entry point.

The $205 Oppenheimer price target is well above the consensus price objective of $194.61. The stock closed on Friday at $192.31.

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The Oppenheimer team has a solid list of companies that could not only match or beat earnings estimates for the third quarter, but they could move forward estimates higher, which could be a very bullish sign.