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Top 5 Companies in the Application Software Industry With the Highest Forward Earnings Yield (VRNT, NUAN, EPAY, MGIC, MENT)

By Shiri Gupta

Below are the three companies in the Application Software industry with the highest forward earnings yields. Using projected earnings for the current fiscal year, the forward earnings yield is useful to compare a stock's return vs. owning a similar stock or other yield assets (e.g. bonds). Generally, the higher the earnings yield, the more undervalued the stock.

Verint Systems ranks highest with a forward earnings yield of 9.8%. Nuance Communications is next with a forward earnings yield of 9.6%. Bottomline Technologies ranks third highest with a forward earnings yield of 6.6%.

Magic Software Enterprises follows with a forward earnings yield of 6.2%, and Mentor Graphics rounds out the top five with a forward earnings yield of 6.0%.

SmarTrend recommended that subscribers consider buying shares of Mentor Graphics on April 25th, 2016 as our technology indicated a new Uptrend was in progress when shares hit $20.74. Since that recommendation, shares of Mentor Graphics have risen 17.9%. We continue to monitor Mentor Graphics for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest forward earnings yield verint systems Nuance Communications bottomline technologies magic software enterprises mentor graphics