Progress Software’s (PGRS) stock sees significant growth: a top artificial intelligence (AI) pick for April?

Progress Software Corporation (PGRS) has been making waves in the stock market recently with its impressive performance. The company’s stock saw a significant boost during Tuesday’s trading session following a positive earnings report. Progress Software reported strong annual recurring revenue and a solid net retention rate, leading to a substantial increase in its stock price. The company exceeded expert expectations, reporting first-quarter fiscal 2025 adjusted earnings per share (EPS) of $1.31 and revenue growth of 29% year-over-year to $238.0 million. These figures caught the attention of investors, causing the stock to surge by as much as 10.5% in a single day.

CEO Yogesh Gupta attributed the sales growth to the company’s diverse product portfolio, with particular success in its data platform and infrastructure management offerings. This boost in performance comes as a welcome relief for the stock, which had experienced a 13% decline since the beginning of the year after reaching an all-time high in late November 2024. However, the revised forecasts from Progress Software for 2025 indicate the potential for further growth in the stock.

The company now expects full-year adjusted EPS to fall within the range of $5.25 to $5.37, up from the initial estimate of $5.00 to $5.12. This upward revision aligns with the predictions of Wall Street analysts, further fueling expectations for the stock’s future performance. Currently, PGRS stock is trading within its 52-week range and below its 200-day simple moving average. However, the positive earnings report suggests that this could change soon, leading to a more favorable position for investors.

Over the past year, Progress Software stock has seen a 6% increase, with CNN analysts forecasting continued growth in the coming year. Out of seven analysts surveyed, 71% recommend buying PGRS stock, with none suggesting selling. The median price forecast for the stock stands at $75.00, reflecting a potential return on investment of 32.18% from current prices. The most optimistic projection puts the stock at $83.00, representing a 46.28% increase from its current value.

In conclusion, although other AI stocks may be more prominent in the market, Progress Software shares offer significant potential. With a more affordable price compared to industry giants like Nvidia, PGRS remains a viable option for investors looking to capitalize on the growth of the AI sector. Incorporating Progress Software into your portfolio this month could prove to be a profitable move in light of its recent performance and promising future outlook.