Top Picks 2016: New Relic

01/22/2016 7:00 am EST

Focus: STOCKS

Rob DeFrancesco

Founder, Tech-Stock Prospector

Our Top Pick for 2016 for growth investors is disrupting the $4-billion application performance management (APM) market via its cloud-based analytics platform, which provides a single dashboard view into an application's health and performance, asserts Rob DeFrancesco, editor of Tech-Stock Prospector.

New Relic (NEWR) sits in a prime spot in the increasingly software-defined enterprise IT landscape. Users deploy New Relic solutions to measure every transaction on a server, browser, or mobile device. Billions of metrics are collected from millions of software processes.

By deploying New Relic's Analytics Cloud, organizations can optimize their software performance and capitalize on the data flowing through the software, gaining valuable insights used to make meaningful business decisions.

The company's solutions are seeing strong demand because they lower the total cost of ownership compared to legacy APM offerings, provide a quicker payback period, feature a faster pace of innovation via the cloud, and easily scale on demand.

A newly announced EC2 monitoring tool capable of providing deep visibility into Amazon AWS environments received 2,500 beta requests in just a few weeks.

In a move to expand its product portfolio, New Relic recently announced the acquisition of Opsmatic, provider of a cloud-based infrastructure monitoring service aimed at the IT operations market.

Opsmatic's software provides real-time visibility into configuration changes across hundreds or thousands of servers in cloud deployments, offering alerts when problems occur in order to reduce downtimes.

Opsmatic's infrastructure service nicely complements New Relic's focus on software analytics. For fiscal 2017 (ending March), the consensus revenue estimate of $234 million indicates growth of 33.4%.

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