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JDA Software Shares Popped: What You Need to Know

By Anders Bylund - Updated Apr 6, 2017 at 10:10PM

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Is this meaningful? Or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of enterprise software maker JDA Software Group (Nasdaq: JDAS) are soaring as much as 16% over last night's closing price on very heavy trading.

So what: The company, which specializes in software for managing supply chains and merchandising programs, just reported a tremendous first quarter. Earnings of $0.45 per share landed a penny ahead of analyst expectations, while sales came in about 4% above Street targets.

Now what: JDA's shares have gained a market-crushing 49% over the last six months, if you start measuring just before another top-notch performance in last year's third quarter. But that's only half the picture: At that point, JDA had swooned a decidedly unimpressive 25% in the previous half-year, and all of this adds up to a middling 11% full-year return. Smaller competitor Manhattan Associates (Nasdaq: MANH) is outperforming JDA in the market, even though JDA has the stronger margins and faster growth of the two. Even after today's jump, you might be looking at a buy-in opportunity here.

Interested in more info on JDA Software Group? Add it to your watchlist.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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