Tyler Technologies (NYSE: TYL) stock landed in the black, albeit just barely, on the second-to-last trading day of the week. The public-sector-focused enterprise software company managed to squeeze out a slight (0.1%) share price gain, thanks to its landing on a prestigious list. By contrast, the bellwether S&P 500 index closed the day marginally lower.
Gartner gives it good marks
Wednesday afternoon near market close, Tyler announced that it has been tagged a “leader” and “visionary” in the Gartner Magic Quadrant for Cloud-Based ERP for U.S. Local Government.
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Gartner is a veteran influential tech industry researcher, and its Magic Quadrant is a proprietary research method used to evaluate the overall quality of such companies. In the quadrants, companies are placed into one of four categories — leaders, visionaries, challengers, and niche players. The former two are considered prestigious.
ERP stands for enterprise resource planning, referring to software systems that help organizations integrate their business processes.
In Tyler’s view, the company’s good placement is due to its offerings having significant added value. It quoted the president of its public administration group, Dane Womble, as saying that the products “go beyond the boundaries of traditional ERP, offering innovative suites that power local governments with a wide array of solutions.”
Nothing like a reputation enhancer
Tyler already has a fairly solid reputation as a provider of useful solutions, so it isn’t surprising the Gartner news moved the needle only a bit on the stock. But reputation matters in its business, so its placement on the Magic Quadrant is undoubtedly a feather in its cap, hence the lightly positive reaction from the market.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tyler Technologies. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.