Global trade rules are changing faster than many companies can update their spreadsheets. That shift is pushing demand for cleaner, real time data pipes that can keep tariffs, classifications, and export controls current. For investors, this is creating a window where trade technology and supply chain software stocks linked to these data and API trends may stand out. This article breaks down three such stocks exposed to the latest trade data theme.
The three stocks covered next are just a sample of what this trade technology and supply chain software theme turns up, with the full screen surfacing 35 more companies with equally compelling stories that are not covered in this article. To identify and analyze your own highest conviction ideas around trade data, automation, and logistics, head straight to the Trade Technology and Supply Chain Software screener.
Tracsis (AIM:TRCS)
Overview: Tracsis is a Leeds based transport software and services company that helps rail operators and transport authorities plan timetables and rolling stock, monitor assets in real time, manage incidents, and run traffic and event operations more efficiently. Its mix of software, hardware, data analytics, and geographic information systems supports customers across rail, road, and large scale events in the UK, Europe, North America, and other international markets.
Operations: Tracsis generates about £39.2 million from Rail Technology & Services and £45.3 million from Data, Analytics, Consultancy & Events, with most revenue coming from the United Kingdom and smaller contributions from Ireland and North America.
Market Cap: £92.3 million
Tracsis operates in the area of real time transport and infrastructure data, with software that helps rail and traffic operators cut delays, manage assets, and make better use of constrained networks. Recent updates highlight a stronger order book, recurring software income and contract wins in rail engineering and data analytics. These developments relate to the company’s aim of increasing higher quality, more predictable revenue. At the same time, investors need to weigh funding risks linked to external borrowing and a rich P/E multiple against low current margins and a mixed long term earnings record. For anyone interested in how rail and traffic software could be affected by the shift to live trade and logistics data, Tracsis may merit further research.
Tracsis is shifting toward higher quality recurring software income, yet its rich P/E and funding needs raise questions that many investors may be underestimating. Get the fuller picture through the analysis report for Tracsis
Build your own trade data shortlist
Tracsis and the other two stocks in this article all came from a single screen, but the real edge is in shaping a filter around what matters most to you. Use our customisable Screener to blend valuation, growth, balance sheet and risk checks, or tap into curated themes through our Investing Ideas.
Softcat (LSE:SCT)
Overview: Softcat is a UK based IT reseller and infrastructure provider that helps businesses and public sector customers plan, buy, and manage technology across cloud, cybersecurity, networking, data, automation, AI, and workplace tools, often acting as a one stop partner for end to end IT services.
Operations: Softcat generates about £1.8b from value added IT reseller and infrastructure solutions activity, with all reported revenue coming from the United Kingdom.
Market Cap: £3.9b
Softcat sits squarely in the middle of the shift to modern, data driven IT, with earnings that have grown faster than its own 5 year average and a history of strong return on equity around the 49% mark. The company is pushing deeper into cybersecurity, data centre and networking, while also investing in automation, data and AI to make both customers and its own sales teams more productive. At the same time, margins have compressed from 12% to 8.1% and analysts see only mid single digit revenue growth, which raises questions about how far the current P/E and dividend story can stretch. For investors interested in trade and supply chain technology, Softcat offers a mix of quality signals and real margin and funding risks that deserve closer inspection.
Softcat’s high return on equity and expanding role in cybersecurity and data centre projects suggest more is happening beneath the headline P/E. See how the full profitability and margin story stacks up in the analysis report for Softcat
Descartes Systems Group (TSX:DSG)
Overview: Descartes Systems Group provides logistics and global trade management software that helps companies plan and track shipments, manage warehousing and last mile delivery, and stay compliant with customs and trade regulations. Its platform connects retailers, manufacturers, freight forwarders, and carriers so they can automate core logistics processes and keep goods moving efficiently across borders.
Operations: Descartes generates about US$753.9 million from providing logistics technology solutions, with most revenue coming from the United States and meaningful contributions from Europe, the Middle East and Africa, Canada, and Asia Pacific.
Market Cap: CA$9.3b
Descartes Systems Group sits at the heart of the push for real time trade and compliance data, with API ready tools for customs filing, tariff calculations, and shipment visibility that many importers and exporters now see as essential. Earnings growth has been steady, margins are strong, and recent AI driven launches such as its Free Trade Intelligence solution and last mile acquisitions show a clear focus on higher value workflows. At the same time, the stock trades on a rich P/E, relies on acquisitions to support growth, and carries governance questions around high executive pay and relatively new management. For investors tracking the trade technology theme, the mix of high quality earnings, active buybacks, and concentrated regulatory risk makes Descartes a company that some may consider researching further.
Descartes Systems Group’s steady earnings and strong margins are only half the story. The real question is how far this trade data engine can run before its rich P/E and acquisition reliance start to bite. Get the full context in the analyst forecasts for Descartes Systems Group
Seeking Fresh Alternatives Before Others Do
New trade and tech themes can move from quiet to crowded quickly. Put yourself on the front foot with fresh stock ideas before momentum is fully caught. Consider acting before conditions change.
- Identify high yield opportunities early and check which companies in the 4 dividend fortresses are still flying under the radar for now, before income hunters focus on them.
- Look for potential long-term compounders by scanning the 10 high quality undiscovered gems while these stories remain under the radar and sentiment has not yet fully reflected them.
- Focus on resilient momentum and review the 7 resilient stocks with low risk scores before the broader market notices which stocks are holding up while others are dropping and volatility keeps rising.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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