On Jan. 20, 2025, Donald Trump will return to the White House, taking the oath as the 47th president of the United States. As Wall Street braces for potential policy shifts, investors are already eyeing sectors that are likely to thrive under Trump’s presidency.
For instance, KeyBanc’s capital markets research team recently pointed out that if the Trump administration delivers on expectations of a pro-growth, deregulation-focused agenda, it could be a game-changer for tech and software companies. With reduced regulatory barriers and a more business-friendly landscape, companies in these fields may attract increased investment, sparking innovation and expansion.
“With Donald Trump as president, we see a likely backdrop of lower corporate taxes, which would be broadly positive for high-tax-paying companies within our coverage,” wrote the firm, adding that “we view the post-election outlook as neutral-to-positive for our broader software coverage.”
Here are three names from KeyBanc’s watchlist that have snagged consensus “Buy” ratings on Wall Street, too.
Tech Stock #1: Workday
California-based Workday, Inc. (WDAY) is a powerhouse in enterprise software, transforming how organizations manage two of their most vital assets: human resources (HR) and finance. Driven by cutting-edge artificial intelligence (AI), Workday equips businesses to enhance their workforce, boost productivity, and fuel impactful growth.
In fact, Gartner’s market share research crowned Workday as the leader in the global ERP SaaS market in 2023, with a commanding 19.6% share of revenue. Valued at a market cap of around $71.9 billion, shares of this software giant are in negative territory on a YTD basis, with WDAY’s decline of around 6% lagging the broader S&P 500 Index ($SPX).
After its fiscal 2025 Q2 earnings report blew past Wall Street’s expectations, Workday’s shares surged an impressive 12.5% on Aug. 23. The company reported revenue of approximately $2.1 billion, up a solid 16.7% year over year. Driving this growth was a 17.2% annual jump in subscription revenue, which now contributes a substantial 91.3% of Workday’s topline figure.
During the quarter, adjusted earnings reached $1.75 per share, up 22.4% year over year. Operating cash flows surged to $571 million, a significant jump from $425 million in the same quarter last year. Free cash flows followed suit, climbing to $516 million, up from $360 million a year earlier.
In addition to fueling its growth, Workday made a strong commitment to shareholder returns by repurchasing $309 million worth of shares in Q2. The company’s financial strength is evident, with a substantial $7.4 billion in cash, cash equivalents, and marketable securities as of July 31, positioning it well for continued growth and strategic investment opportunities.
For Q3, scheduled for release after the market closes on Tuesday, Nov. 26, Workday’s subscription revenue is expected to reach approximately $1.96 billion, reflecting a solid 16% year-over-year increase.
For fiscal 2025, management raised its subscription revenue guidance, now projecting a range between $7.70 billion to $7.73 billion, reflecting an impressive 17% growth. The company is also forecasting a stable non-GAAP operating margin of 25.3% for both the upcoming quarter and the full fiscal year, underscoring Workday's solid financial footing and steady growth path.
WDAY stock has a consensus “Moderate Buy” rating overall. Out of the 34 analysts offering recommendations for the stock, 23 suggest a “Strong Buy,” two advocate a “Moderate Buy,” eight say it’s a “Hold,” and one has a “Strong Sell” rating.
The average analyst price target of $289.28 indicates 11.5% potential upside from the current price levels. The Street-high price target of $352 suggests that WDAY could rally as much as 35.7% from here.
Tech Stock #2: Atlassian Corporation
San Francisco-based Atlassian Corporation (TEAM) is a global powerhouse in enterprise collaboration and workflow software, empowering teams worldwide with its innovative, cloud-based solutions. Originally crafted to streamline communication and project management for software development teams, Atlassian’s tools have rapidly expanded across industries, transforming the way teams work together in finance, HR, legal, IT support, and beyond.
With a market cap of around $65.1 billion, shares of Atlassian are roughly flat on a YTD basis, but have racked up gains of roughly 63.5% over the past three months.
Following the company’s fiscal 2025 Q1 earnings report, which crushed Wall Street’s forecasts, shares of Atlassian surged almost 19% on Nov. 1. Total revenue for the quarter rose to $1.2 billion, up 21% year-over-year. This impressive revenue growth was fueled by a 33% year-over-year increase in subscription revenue, underscoring the company’s growing dominance in the market.
On an adjusted basis, earnings of $0.77 per share increased 18.5% from the year-ago period and smashed Wall Street’s estimates by 19%. By the end of the first quarter, the company’s cash and marketable securities totaled $2.2 billion. Operating cash flow reached $80.5 million, with free cash flow coming in at $74.3 million, translating to a solid free cash flow margin of 6% for the quarter.
Atlassian’s Board of Directors greenlit a new $1.5 billion share repurchase program in September, set to begin after the completion of its $1 billion buyback from January 2023. This initiative gives the company the flexibility to repurchase shares on the open market or through structured agreements while strategically returning capital to its investors.
For fiscal 2025, the company anticipates strong growth across key areas. Total revenue is projected to climb between 16.5% and 17%, with cloud revenue leading the charge at an impressive 24% increase year-over-year. Data Center revenue is expected to follow with a solid 20.5% annual growth, while Marketplace and other revenue should rise by about 5%. TEAM forecasts a robust gross margin of 81% on a GAAP basis and 83.5% on a non-GAAP basis.
Overall, Wall Street is optimistic, with a consensus “Moderate Buy” rating for TEAM stock. Of the 24 analysts in coverage, 15 advise a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining eight recommend a “Hold.”
The average analyst price target of $248.59 indicates 3.6% potential upside from the current price levels, while the Street-high price target of $300 suggests that TEAM could rally as much as 25%.
Tech Stock #3: Aspen Technology
Massachusetts-based Aspen Technology, Inc. (AZPN) is a global leader in software solutions that empower industries tackling the challenge of meeting rising resource demands sustainably and profitably. Aspen’s cutting-edge tools are built for complex, asset-intensive environments, enabling customers to optimize the entire lifecycle of asset design, operation, and maintenance.
With a powerful blend of domain expertise and innovation, Aspen Tech helps companies run their assets safer, greener, and more efficiently, paving the way for exceptional operational excellence and sustainability. Valued at $15.6 billion by market cap, AZPN stock is up more than 12% on a YTD basis, and 36.8% over the past year.
Aspen Tech unveiled its fiscal 2025 Q1 earnings results earlier this month, which missed estimates. Total revenue and adjusted EPS for the first quarter came in at $215.9 million and $0.85 - down from $249.3 million and $1.16 in the same period last year. One bright spot was Annual Contract Value (ACV) at $941.4 million, up 9.4% year-over-year, highlighting the company’s strong momentum in securing long-term, recurring revenue streams.
As of Sept. 30, the company reported cash and cash equivalents of $221.1 million, down from $237 million at the end of June 2024. The dip in cash reserves was mainly attributed to the company's ongoing share repurchase activity under its fiscal 2025 authorization. During the quarter, Aspen Tech bought back roughly $20.5 million worth of its shares.
For fiscal 2025, management reaffirmed its outlook, with revenue projected to be approximately $1.19 billion. The outlook also includes GAAP operating cash flow of $357 million and free cash flow of $340 million, alongside total bookings of $1.17 billion. Additionally, adjusted EPS is forecasted to be around $7.52 per share for the entire year.
AZPN stock has a consensus “Moderate Buy” rating overall. Of the eight analysts covering the stock, three suggest a “Strong Buy,” and the remaining five maintain a “Hold” rating.
The average analyst price target of $252 indicates 2% upside from the current price levels, while the Street-high price target of $260 is about 5.3% overhead.
