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Hilary Kramer: 3 “Especially Exciting” US Stocks
Aspire, Thought Leaders | 13 March 2015
By: Lim Si Jie
Articles (169) Profile

In a previous article, we noted renowned equity analyst, Hilary Kramer’s bearishness against five notable stocks in the US market. In this article, we cover Hilary’s bullishness for three specific stocks.

In her own words, she is “especially excited about these three unstoppable stocks that are leading my buy list right now”. Here are the three and why she is so adamant that they will each see double digit returns.

Cloud Computing: Catching The Next Tech Wave

Workday (WDAY) uses cloud technology to deliver software as a service (SaaS) to help companies manage time and talent through the cloud network. Like many of its software counterparts, WDAY’s top line comes from software applications subscription.

Fundamentally Sustainable?

The key question for software companies is whether they are able to run a steady business over the long run. With total subscription revenue generating more than 75 percent of the firm’s recurring revenue, WDAY looks to be fundamentally strong as a long term investment.

Moreover, WDAY’s growth rate is outpacing its industry by several multiples while at the same time the company is also growing at a faster rate than its software peers.

Akamai: A Market With Potential

Akamai (AKAM) operates both content delivery and network security, and has roughly 135,000 servers across the globe. These servers help customers deliver data at a notably fast speed to the ultimate end-users, i.e. you and me who are using the internet.

The company has its servers located physically close to end users and was termed by the industry as the “edge” of the internet. Because of the advantage of close proximity, AKAM is able to deliver customer content to its end-users much faster compared to its other peers. Management claims that as much as 30 percent of global internet traffic is routed and cached across its servers, which highlights the potential.

Akamai’s Server Locations A Boon To Business

Akamai’s potential is further complemented by its competitive advantage – its servers’ locations. AKAM servers sit on the edge of the network and outside of corporate firewalls that are installed on-site or in the cloud network.

This allows the Kona segment to offer a “fire line” of defence against cyber-attacks by deflecting before the attacks even make it to the corporate firewall. In the event if an attack hits, the threat would be minimal at worst.

Akamai’s Market Advantage

AKAM is a U.S.-centric tech stock and 70 percent of its revenue is derived from domestic companies. In an environment where investors seem to be worried about international exposure and emerging market slowdown, a tech company focused on the US market reduces sensitivity to downturn. The company’s strong results and guidance helps set the stage for continued growth in 2015.

 

Omnicell: Solving A Pressing Issue

According to the Journal of Patient Safety, the third-leading cause of deaths in the United States is preventable medical errors. These errors lead to 400,000 deaths a year, i.e. more than 1,000 people a day. Omnicell (OMCL) is leveraging on technology to bring those numbers down.

OMCL has become the leading provider of technologically advanced automation that helps healthcare facilities (hospitals and pharmacies) streamline how medications are administered and manage costly medical supplies.

Essentially, the company aims to reduce human error by creating products that ensure that clinicians give the right medication to the right patient with the right dosage at the right time. Through its automation, analytics and medication adherence solutions, the company also reduces operating costs, improves workflow and increases efficiency.

Omicell’s Sound Management, Solid Growth

This company has enjoyed solid growth in recent years. This success is attributed to management broadening their product portfolio, expanding its markets geographically, and forming partnerships with customers to address medication management through the entire continuum of care. The stock has held up well in market volatility, trading in a narrow range. With its long-term story still intact, this company remains a good buy.

Si Jie is no stranger to investing having started his journey at a young age. He is heavily influenced by acclaimed investors such as Benjamin Graham, Peter Lynch, and John Rothchild.

Please click here for more information about this author.


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