Taleo Corporation (NASDAQ: TLEO) offers
software that allows businesses to efficiently manage their staffing processes. Products help to automate recruitment, background screening, regulatory compliance, skills assessment and tracking of professional, hourly, and temporary employees. The firm's professional services division provides implementation and technical support. Customers range from small businesses to global enterprises. Hewlett-Packard (NYSE: HPQ), Dow Chemical (NYSE: DOW) and Freeport-McMoRan (NYSE: FCX) are among Taleo's large-cap clients.
Investors were pleased last month, when the company affirmed its Q2 EPS and revenue guidance figures. Management also said it expected this week's acquisition of talent management software maker Vurv Technology to add to its 2008 results, projecting EPS of 62 cents (60 cent consensus) and revenues of $175-$177 million ($162.8M consensus).
The news
kept TLEO shares cycling through a positive eight-week trading channel. The price is currently rebounding from the base of that channel, suggesting the potential for a rise back toward the top.
Brokers recommend the issue with two "strong buys", seven "buys", six "holds" and one "underperform". Analysts expect a 42% growth rate, through the next year. The TLEO Sales Growth rate (29.67%) and EPS Growth rate (250.00%) compare favorably with industry, sector and S&P 500 averages. Institutional investors hold about 80% of the outstanding shares. Over the past 52 weeks, the stock has traded between $16.55 and $34.20. A stop-loss of $17.50 looks good here. Note that the firm is expected to release Q2 results in late July.
Larry Schutts is a contributing editor for Theflyonthewall.com and the Vice-President of Stockwinners.com. He does not hold positions in any of the stocks mentioned above.
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