TERADATA CORP. $73 (New York symbol TDC; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 168.6 million; Market cap: $12.3 billion; Price-to-sales ratio: 4.9; No dividends paid; TSINetwork Rating: Average; ww.teradata.com) continues to see strong demand for its analytics services, which help businesses gather and analyze large amounts of data, including customer purchasing patterns. The company’s revenue rose 14.5% in the three months ended June 30, 2012, to $665 million from $581 million a year earlier. Earnings per share rose 28.3%, to $0.77 from $0.60.
However, the company is facing stronger competition from bigger companies like IBM and Oracle. That could force it to lower its prices, which would hurt its profit margins.
Teradata is a hold.