Buy Zuora Shares: Forecast and Target Price
Companies are becoming more and more computerized and need efficient software for both billing, employee management and the automation of various processes. To Buy Zuora shares means believing in this technological advance, which this company has been chasing for some years.
The services offered by Zuora are by subscription and are enjoying great success on the market, but will this be enough to raise the price of the stock on the stock exchange?
In this guide we will find out, starting from the analysis of the factors most connected to the growth of shares:
- The economic situation of the company
- The market and competitors
Here is a diagram highlighting the relevant data of this company:
|Listing||👜 New York stock exchange|
|Benchmark||📃 Russell 2000|
|Turnover||💰 $ 305 milions|
|Best online platforms||📈 eToro / Trade.com|
To buy Zuora shares you need a broker, so here is a short list of the best online trading platforms on the market:
Min. Deposit: 50€
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Min. Deposit: 250€
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Min. Deposit: 250€
Zuora: the company
Zuora is an American company founded in 2007 in Silicon Valley, but its founders have Asian origins and are called KV Rao, Cheng Zou and Tien Tzuo, expert computer engineers with good experience in the sector.
The company name was chosen by combining their own surnames. The basic idea was to create a cloud billing platform that could be used by subscription, without companies having to incur software costs that become obsolete in a few years.
In 2016, Zuora launched the Subscription Economy Index, an index that compares the growth of businesses using its systems with sales results. Everything is managed by the cloud platform provided by Zuora to its subscribers and has allowed this company to become popular and authoritative.
The company has grown rapidly and in 2018 presented its initial public offering (IPO) on the New York Stock Exchange.
After the listing, Zuora reached 2 billion in value, quickly becoming one of the most interesting former startups in the industry.
In the following years, the company improved its financial structure and in 2020 hired Todd McElhatton, formerly of SAP, as its new CFO.
Over the years the company has won numerous awards for the quality of its services. Among these we remember the:
- SIIA CODiE Award 2016 for the best company of the year
- CODiE Award 2017 for the best subscription management solution
- CODiE Award 2020 for the best billing solution
- Bronze Stevie Award 2020 for Best Customer Service
How to Buy Zuora shares
To buy Zuora shares you need a PC, a good internet connection and an online broker that allows you to trade the stock.
Financial intermediaries offering this service are mainly of two types:
- Traditional brokers, which provide for the opening of a securities account, the payment of stamp duty and trading commissions.
- CFD Brokers, who offer Contracts for Difference, do not need a securities account, do not pay stamp duty and do not provide for trading fees.
The former are usually used by those who have large capital to invest and do not care about commissions, also because they do few operations during the year.
The latter are instead more suitable for those who trade online with a certain frequency and therefore cannot afford to waste money on commissions and extra costs.
CFD brokers offer numerous advantages over traditional brokers, here are the most important:
- They allow you to sell short
- There are no trading fees
- Even small investments can be made
- The trading platforms are very intuitive
- There is a Demo account to practice
Where to Buy Zuora Shares
At this point you should decide which broker to use to buy Zuora shares, among the various brokers available on the market.
The choice depends on your trading style and your needs, but there is one element that you cannot overlook: the intermediary’s regulation.
The brokers that we propose in this guide are all authorized by entities such as CONSOB or CySEC, therefore safe and very reliable.
Don’t overlook this key factor, an unlicensed broker could be hiding a real scam.
Here are 3 brief descriptions of the market leading brokers, the most suitable to buy Zuora shares without paying commissions:
eToro does not need much introduction as it is one of the most popular brokers in the world. Its over 20 million subscribers confirm its reliability
It operates with numerous international licenses obtained in various countries, among which the one received from CONSOB and CySec for Europe stands out.
The trading platform is a well recognizable element of eToro and allows you to trade on numerous financial assets, such as stocks, indices, commodities, currencies and cryptocurrencies, always without paying commissions.
Here’s what the Zuora stock looks like on the eToro platform:
How do you buy Zuora shares with eToro?
- Register for free on eToro
- Log into your Demo or real account (by depositing at least € 50)
- Select the Zuora stock and click on “Trade”
- Decide whether to buy or sell the shares and how much to invest in the operation
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This patent allows you to copy the operations that are performed by the best traders in the world (chosen by you on the eToro platform) and to replicate them on your trading account.
Thus you will get the same returns (based on how much you have invested) of the traders you have decided to copy.
Here are some examples of traders you could copy:
Trade.com is becoming popular in our country, having quickly conquered all of Europe.
Thanks to the CONSOB and CySec license, European traders have rightly learned to trust this extremely secure Broker, which has brought online investments to a semi-professional level.
The offer of CFDs is really extensive and allows you to choose between stocks, commodities, indices, cryptocurrencies, forex, etc. , all assets that can be traded without paying commissions.
To improve operating results, Trade.com offers a Trading Course that explains the rules of technical analysis, the indicators to be used and the strategies to follow.
This pdf is very detailed and deserves a thorough reading. The course is free, here is the link to download it:Download the Trading Course for free by clicking here
Trade.com offers two free but professional trading platforms: MetaTrader 4 and the Web Platform.
To buy Zuora shares on Trade.com you have to follow these simple instructions:
- Register for free on Trade.com
- Log into your real account by depositing at least € 100
- Select the Zuora stock and click on “Buy” to buy or “Sell” to sell short
- Decide how much to invest in the operation
Business Model Zuora
The Zuora business model is based on a subscription system, which allows a constant cash flow and allows us to offer services and products that always live up to expectations.
The cloud methodology, also used by companies of the caliber of Cloudflare and Fastly, allows you to solve every problem and every bug in a centralized way, without having to physically distribute software updates to your customers.
Its most important software are:
- Zuora Billing
- Zuora Revenue
- Zuora Collect AI
- Zuora Analytics
Below we see the most important financial data of this company:
- Quotation: NYSE
- Ticker: ZUO
- Benchmark: Russell 2000
- Sector: Business software
- Foundation: 2007
- Founders: KV Rao, Cheng Zou, Tien Tzuo
- Headquarters: Redwood Shores, California
- CEO: Tien Tzuo
- Revenue: $ 305.42 million (2021)
- Net profit: – $ 10.14 million (2021)
- Number of employees: 1,249
Is it worth to buy Zuora shares
Zuora’s earnings are in line with market expectations, but analysts’ average sales estimate was less optimistic than the company’s results this year.
The growth in sales has also pushed the stock on the stock exchange which has surpassed the levels of 2020 as you can see in the graph below:
In 2021, Zuora’s results have been quite encouraging on many fronts. Subscription revenue increased 23% year-over-year to $ 71.5 million, and the volume of transactions made through the company’s platform increased 42% to $ 18 billion.
Overall, these data invite us to buy Zuora shares, but we must act cautiously and not expose ourselves excessively.
The ISIN code of Zuora is US98983V1061.
Zuora is a company that is competing with the major software companies internationally, among which we mention:
- Aria Systems
- Get Ceddar
Zuora shares forecast
Sales are growing, subscriptions are paying more and more and market capitalization is in proportion with the trend in fundamentals.
The chart below clearly shows the uptrend but at the same time highlights the rapid swings of the stock, which make it more suitable for short-term online trading rather than long-term investments:
Below we have included the forecasts of the major sector analysts on the Zuora stock:
- Craig Hallum has issued a “buy” rating and a $ 24.00 target price for the company.
- Zacks Investment Research downgraded Zuora from a “pending” rating to a “sell” rating.
- Needham & Company LLC increased Zuora’s stock from a “pending” rating to a “buy” rating and set a price target of $ 24.00 on the stock.
- Morgan Stanley increased Zuora’s stock from an “underweight” rating to an “equal weight” rating and raised the company’s price target from $ 13.00 to $ 18.00.
- MarketBeat.com currently has a “Buy” rating on the Zuora stock and an average target price of $ 20.43 for ZUO stock.
Zuora shares target price
By examining the ratings issued by 5 international analysts, the forecasts for the Zuora stock are purchase and are based on the current pending rating of one analyst out of 5, while the remaining 4 ratings are all purchase.
The twelve-month average target price for Zuora is $ 24.00.
Cloud platforms are growing in every area and subscription services are a choice that is consolidating in various sectors.
Zuora is increasing the number of customers and at the same time growing in terms of cash flow. Experts therefore believe that buying Zuora shares is an investment with great potential.
At the same time they advise caution and in their forecasts we read to be careful not to expose yourself too much in the long term, but prefer online trading in the short term, which, given the volatility of the shares, can give a lot of satisfaction.
For this type of investment, commission-free CFD brokers are an excellent choice, also because they allow you to aim both upwards and downwards (if necessary).
Develop your strategy on a Demo account, so as not to take any risks while doing the related tests. Then you can switch to the real account. Here are the links to access for free:
- Access the eToro Demo account for free by clicking here
- Register on Trade.com and try the Demo account by clicking here