Integrated Research share price hits record high – should you invest?

Today's trading has seen the Integrated Research share price hit a record high. Here's why I think it still has further room to grow.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The share price of software solutions provider Integrated Research Limited (ASX: IRI) reached an all-time high in early afternoon trade, surging over 5% to a new high of $4.40.

The Integrated Research share price got off to a hot start today after the company informed the market it would be releasing full-year earnings for FY19 on 20 August. The share price has, however, also been assisted by the collective gains of the ASX technology sector more broadly.

Today's result means the company has more than doubled in value since bottoming out at $2.19 in March. But I think the Integrated Research share price still has some growth ahead of it, particularly over the medium to long term.

What's driving the Integrated Research share price to an all-time high during this period of extreme volatility?

Impressive FY19 earnings

The Integrated Research share price has improved since the company, which is a leading global provider of management solutions for critical unified communications, payments, contact centres and IT infrastructure, provided a sneak-peak for expected FY19 profit guidance on 17 July.

This announcement indicated that revenue was expected to grow by around 9%-10% up to as much as $111 million. Likewise, profit after tax was touted to see an improvement of around 8%-11%.

Despite last month's announcement being subject to the necessary financial auditing requirements, the Integrated Research share price has been bolstered by over 13% since these figures were revealed.

Why I think the Integrated Research share price is still a buy

Although we'll know for sure just how well the company has performed in a couple of weeks, I like Integrated Research for its unique product offering, 'Prognosis for Unified Communications (UC)'.

In last month's profit guidance update, the company cited that its 13%-15% increase in licence sales was predominantly driven by its UC products.

Prognosis for UC is a performance management solution for voice, video and collaboration ecosystems, allowing its clients to monitor, troubleshoot, and optimise complex UC environments on-premises, in the cloud, or both.

Integrated Research offers the Prognosis suite in over 60 countries worldwide, and the company has benefitted from contracts with Avaya, Microsoft, Cisco, AT&T and Australia and New Zealand Banking Group Limited (ASX: ANZ) among others.  

I believe the growth of the company's 'Prognosis' platform is a key factor currently driving the positive movements of its share price.

Foolish takeaway

With working from home protocols resulting in unprecedented demand for software as a service (SaaS) and enhanced capabilities in the cloud itself, I see companies such as Integrated Research continuing to perform well over the medium to long term.

This company remains a watchlist item for me at this point, but I'll be keeping a close eye on its Prognosis UC platform over the coming months.

Toby Thomas has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Integrated Research Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

man with dog on his lap looking at his phone in his home.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

Two workers at an oil rig discuss operations.
Broker Notes

Should you buy Santos, Beach Energy or Woodside shares? Here's Macquarie's top pick

Macquarie has released its new share price expectations for Santos, Beach Energy and Woodside shares.

Read more »

A green fully charged battery symbol surrounded by green charge lights representing the surging Vulcan share price today
Share Market News

Up 300% in 6 months! This soaring ASX lithium stock just took a major step to production

Marching forward.

Read more »

An old-fashioned panel of judges each holding a card with the number 10
Share Gainers

Here are the top 10 ASX 200 shares today

It was a happy end to the trading week this Friday.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A young man pointing up looking amazed, indicating a surging share price movement for an ASX company
Share Market News

Macquarie says this top ASX tech stock could rise 15%

Let's see what the broker is saying about this stock.

Read more »

Excited couple celebrating success while looking at smartphone.
Healthcare Shares

Up 680% since July, here's why 2025 was a breakout year for this hot ASX stock

With consistent contract wins, FDA clearance, and backing from Pro Medicus, 4D Medical is showing that there is a commercial…

Read more »

A male investor wearing a blue shirt looks off to the side with a miffed look on his face as the share price declines.
Share Fallers

Why Collins Foods, Monash IVF, Premier Investments, and Step One shares are tumbling today

These shares are ending the week in the red. But why?

Read more »