Amdocs Limited, a diversified software company, has emerged as a promising choice for investors seeking a safe tech stock for their retirement portfolios. The company recently reported strong financial results, with record revenue of $1.25 billion in Q3 2024, a nearly 2% increase year-over-year. Amdocs also achieved a record 12-month backlog of $4.25 billion, demonstrating robust demand for its services.
The company is on track to meet its fiscal year 2024 guidance, with expected revenue and non-GAAP EPS growth of around 9%. Investment firm Stifel initiated coverage on Amdocs with a “Buy” rating and a price target of $100. Stifel highlighted the company as a “total return” story that aims to deliver approximately 10% returns to investors through earnings per share growth and dividend yield.
Amdocs’ strong earnings and growth
Amdocs is making significant strides in generative AI and recently partnered with a leading global operator. The company’s cloud-related revenue, which accounted for over 20% of total revenue last year, is projected to experience double-digit growth in fiscal 2024.
“We are excited about our partnership with a leading global operator in the field of generative AI,” said Shuky Sheffer, President and CEO of Amdocs. This collaboration showcases our commitment to innovation and our ability to deliver cutting-edge solutions to our clients.
Amdocs’ strong financial performance, expansion of AI and cloud services, and favorable analyst ratings make it a stable and promising choice for investors looking to include safe tech stocks in their retirement portfolios. As the company diversifies its offerings and capitalizes on emerging technologies, it is well-positioned for sustained growth in the coming years.
Investors seeking a reliable tech stock with a track record of success may find Amdocs a worthwhile addition to their retirement stock portfolio.
