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Roper Technologies, Inc. (ROP) is a diversified technology company headquartered in Sarasota, Florida. Founded in 1890, Roper has evolved from its industrial manufacturing roots into a leading provider of vertical market software and technology-enabled products. With a market cap of $61.1 billion, the company operates through three primary segments: Application Software, Network Software, and Technology-Enabled Products.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and ROP perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the software application industry. Roper Technologies’ competitive strength lies in its asset-light, high-margin business model, which focuses on acquiring niche, mission-critical software and technology-enabled companies with strong recurring revenues. Its diversified portfolio across healthcare, legal, education, logistics, and public safety sectors reduces market risk, while its proven acquisition strategy drives consistent growth without compromising profitability.
ROP slipped 4.3% from its 52-week high of $595.17, achieved on May 3. Over the past three months, ROP stock declined 4.1%, compared to the broader Dow Jones Industrial Average’s ($DOWI) 1.6% fall during the same time frame.
In the longer term, shares of ROP rose 9.6% on a YTD basis, outperforming $DOWI’s YTD marginal dip. However, over the past year, it climbed 4.1%, lagging $DOWI’s 9.1% returns over the last year.
To confirm the bullish trend, ROP has traded above its 200-day moving average since the end of April and has remained over its 50-day moving average since early May, despite some fluctuations.
Roper Technologies delivered its Q1 2025 on April 28, and its shares slipped over 1%, as margin pressures and segment-level softness weighed on investor sentiment. Moreover, gross margin narrowed to 68.7%, while adjusted EBITDA margin declined 90 basis points to 39.3%, prompting concerns about profitability.
On the bright side, it posted an adjusted EPS of $4.78, surpassing expectations. The industrial equipment maker’s revenue stood at $1.88 billion, meeting Street forecasts.
In the software applications industry, top rival Cadence Design Systems, Inc. (CDNS) has taken the lead over ROP, showing resilience with a 1.4% decline on a YTD basis and a marginal drop over the past 52 weeks.
Wall Street analysts are fairly upbeat on ROP’s prospects. The stock has a consensus “Moderate Buy” rating from the 16 analysts covering it, and the mean price target of $638.62 suggests a potential upside of 12.1% from current price levels.
