Goldman Sachs’ Stocks With Highest Consensus Returns: 42 Stocks With The Highest Consensus ROE

38. Tyler Technologies, Inc. (NYSE:TYL)

Consensus ROE: 5%

Number of Hedge Fund Investors in Q2 2024: 27

Tyler Technologies, Inc. (NYSE:TYL) is a Texas based software company which primarily caters to the needs of the public sector. Some public entities that it serves include governments, courts, and schools. Tyler Technologies, Inc. (NYSE:TYL) allows customers to manage payments, billings, record management, and application development. Its focus on the public sector means that the software company is relatively insulated from the otherwise cyclically driven downtrends in the software industry. Consequently, Tyler Technologies, Inc. (NYSE:TYL)’s stock is up 45% year to date and 51% over the past twelve months especially as its presence in the public sector application development industry means it can allow governments and related entities to launch AI applications. On the non AI front, the trend in the government to accelerate cloud and SaaS deployment has picked up speed with a record $1.34 billion in cloud spending in 2023. This places Tyler Technologies, Inc. (NYSE:TYL) in a favorable position to benefit from multiple government upgrades particularly given the recent push toward efficiency.

Carillon Tower Advisors mentioned Tyler Technologies, Inc. (NYSE:TYL) in its Q2 2024 investor letter. Here is what the fund said:

“Tyler Technologies, Inc. (NYSE:TYL) provides software for state and local governments with a focus on enterprise resource planning (ERP), courts and justice, public safety, and payments. The company delivered solid results for the quarter, with strong sales of recurring subscription revenue and with profitability poised to increase as temporary, elevated data center costs are reduced in the quarters ahead. We remain optimistic that the company will benefit from healthy state and local budgets, driven in part by infrastructure spending.”