Absolute is another solid tech company. It is not as well known as some of the bigger players and is having a banner year. Much like several tech companies - it looks slightly expensive at these levels. That being said, at 38 times forward earnings, it isn't completely overpriced as it is expected to grow earnings and revenue by 17% and 10% respectively over the next couple of years.
On a historical basis, it doesn't have quite the track record. It has been highly volatile as it had a history of missing estimates. This seems largely behind them though as they beat on earnings in 6 straight quarters and 9 out of the last 12. Given they are starting to execute, they have finally broken through resistance towards new highs.
It seems to have a clear path to growth. It is however, likely to be more volatile than a more established company such as Enghouse. Given this, if the market crashes again - I'd expected ENGH to hold up better than ABT.
Of note, it has jumped by 25% in the past month and given it has just passed the $500 million market cap, we will add it to our screener for the next week.
Mat