Vertex VERX shares have skyrocketed 107.3% in the past 12 months, outperforming the Zacks Computer Technology sector, Zacks Internet Software industry and the S&P 500’s return of 38.1%, 40.3% and 26.8%, respectively. This strong performance highlights investor confidence in Vertex's innovative tax compliance solutions, strategic partnerships and expanding client base.

Here's why adding Vertex to your portfolio makes sense now.

Factors That May Benefit Vertex

The increasing adoption of e-invoicing globally and the ongoing enterprise resource planning (ERP) migration super cycle present multi-year growth opportunities for Vertex. As companies shift to cloud-based ERP systems, the demand for integrated tax compliance solutions is expected to rise significantly. These regulatory and technological shifts position Vertex as a key enabler for businesses navigating complex tax environments.

Notably, Vertex provides tax solutions that directly integrate with ERP platforms provided by SAP SAP, Oracle ORCL, Workday and Microsoft MSFT. As SAP and Oracle phase out their legacy ERP systems, a large number of organizations are moving to SAP and ORCL’s cloud-based ERPs. Vertex is providing these companies with tax engines compatible with SAP S/4HANA, Oracle Cloud Infrastructure and Microsoft Dynamics. With rising complexities in tax regulation and the introduction of delivery fees and bag fees, more and more companies are seeking Vertex’s advanced tax solutions.

Vertex Price Performance Chart

Image Source: Zacks Investment Research

VERX's investment in artificial intelligence (AI) reflects its commitment to innovation. New AI-driven tools like smart categorization and Copilot enhance tax categorization accuracy and reduce audit risks, delivering measurable value to customers. These advancements reinforce Vertex’s competitive advantage and appeal to enterprises seeking efficient and compliant tax solutions.

Vertex’s sustained focus on expanding its product portfolio is helping it win new customers. In the third quarter of 2024, the company wins significant customers across diverse industries, including a global fast-food chain and an electric vehicle manufacturer. These wins validate the scalability and reliability of Vertex's solutions, deepen its penetration in key markets and boost revenue growth.

Analysts seem to be optimistic about Vertex’s growth prospects. The Zacks Consensus Estimate for the company’s 2025 and 2026 revenues indicates a year-over-year increase of 14.8% and 14.3%, respectively. Its earnings for 2025 and 2026 are estimated to grow by 12.4% and 27.1%, respectively.

Conclusion: Buy VERX Stock for Now

Vertex’s strong portfolio, increasing customer base and product integrations in the solutions of industry leaders make it a compelling investment option at present. Vertex sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Moreover, Vertex has an impressive Growth Score of A. This style score condenses all the essential metrics from the company’s financial statements to get the true sense of the quality and sustainability of its growth. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or #2 (Buy) and a Growth Score of A or B offer solid investment opportunities.

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