4 Trending Software Stocks To Watch Going Into March
Software stocks have been one of the biggest winners in recent memory. Investors who bet on them have seen astronomical returns to their portfolios in the last year. This is unsurprising given how the pandemic had accelerated the digital transformation, which in turn fueled growth for the top software stocks. It showed us how we were so dependent on software products and services. This could range from cybersecurity to Software-as-a-Service (SaaS) platforms and cloud computing. Chances are if one of your stocks enabled work-from-home activities or facilitated better data use, your stock likely rocketed in the last few months.
For instance, software stocks like Palantir (NYSE: PLTR) have been up by over 130% since its IPO in September last year. Another great example is Twilio (NYSE: TWLO) that has been up by over 200% in the last year. These gains are in direct response to the pandemic that has forced many companies to shift to an online presence for business continuity. By increasing corporate spending on digital infrastructure, software stocks have had one of their best runs so far. Will the sector be able to continue with its streak? I believe that companies who have invested in software will likely continue doing so given how we have adapted so well into this pandemic. With that in mind, here is a list of top software stocks for you to consider buying.
Best Software Stocks To Buy [Or Sell] Now
- Twitter Inc. (NYSE: TWTR)
- Salesforce.com Inc. (NYSE: CRM)
- Autodesk Inc. (NASDAQ: ADSK)
- Workday Inc. (NASDAQ: WDAY)
Twitter Inc.
Twitter is a microblogging and social networking service. Basically, its software service allows people to connect and communicate via messages known as ‘tweets’. The company has been on the news yesterday after announcing its plan to double revenue by the end of 2023. This had caused Twitter shares to soar by over 4% as of 1:58 p.m. ET. TWTR stock has been up by over 35% year-to-date.
This is the first time Twitter has set long-term goals for revenue and daily users and this comes ahead of the company’s analyst day. The company aims to have 315 million monetizable daily active users (mDAUs) by the end of 2023. It also expects to double its annual revenue in that year.
This would mean that Twitter expects to earn at least $7.5 billion in 2023. To top things off, it also plans to double its development velocity by the end of that same year. Do you think this would make TWTR stock a stock to consider buying?
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Salesforce.com Inc.
Salesforce is the world’s number 1 customer relationship management (CRM) platform. In detail, its cloud-based applications are used for sales, service, marketing, and more. Furthermore, it does not require IT experts to set up or manage and has an easy-to-use interface to connect to customers. Its platform is used by over 150,000 companies to grow their businesses and strengthen customer relationships. If anything, CRM stock is making waves right now as the company just released its fourth-quarter fiscal.
In it, Salesforce posted a total revenue of $5.82 billion for the quarter, a 20% year-over-year bump. For the fiscal year, it posted a revenue of $21.25 billion which adds up to a 24% year-over-year increase. Safe to say, Salesforce is confident of its ability to deliver moving forward as it raised its fiscal 2022 revenue guidance as well. Rightfully so as it continues to pull massive clients.
Earlier this month, the company announced that it is working with Coca-Cola (NYSE: KO) bottlers in North America. In brief, Salesforce will digitally transform its contact center and field service operations. The largest bottlers of the Coca-Cola system in the U.S. will deploy Salesforce Consumer Goods Cloud to help streamline their operations. All things considered; will CRM stock be worth adding to your portfolio?
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Autodesk Inc.
Autodesk is a multinational software corporation that makes software products and services. Many fields and industries use its software. For instance, they range from architecture and engineering to education and entertainment. Also, the company aptly describes that its software is made for people who make things. Chances are if you have driven a high-performance car, watched a great film, or used a smartphone, you have experienced what millions of Autodesk customers are doing with its software. For investors, now may be a good time to watch ADSK stock as it just posted its fourth-quarter earnings yesterday.
Diving right into it, Autodesk saw a total revenue of $1.04 billion for the quarter. This marks a 16% year-over-year increase. CEO Andrew Anagnost cites a record number of enterprise agreements in the quarter as a driving factor for the company’s growth. Solid quarter aside, Autodesk also revealed plans to acquire leading water infrastructure software company, Innovyze earlier this week.
Should things go as planned, Autodesk would become a leader in end-to-end water infrastructure solutions through this acquisition. Given Autodesk’s current momentum, will you consider buying ADSK stock?
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Workday Inc.
Workday is a leading provider of enterprise cloud applications for the finance and human resource sectors. It helps customers adapt and thrive in a digital world. Its applications for financial management, human resources, planning, spend management, and analytics have been adopted by thousands of organizations around the world. Workday claims that more than 60% of the Fortune 50 uses its software.
Overall, the company has a massive client list and operates in a fast-growing industry. It is no surprise then, that WDAY stock has more than doubled since the March 2020 lows. Given its full-year 2021 earnings posted yesterday, I could see investors watching WDAY stock closely.
For the fiscal year, Workday brought in a total revenue of $4.32 billion, a 19% jump year-over-year. In detail, the company saw its subscription revenue rise by 22.4% over the same period. This added up to a whopping $3.79 billion in the year. If that was not enough, Workday’s operating cash flow also improved by over 46% year-over-year as well. As Workday continues to serve organizations in the age of digital transformation, I could see it continue to pick up speed in 2021. Would you say that this makes WDAY stock worth investing in now?
