3 Hot Software Stocks To Watch Right Now
While investors seek direction amidst conflicting data on the economic recovery, the world of tech continues to expand. With this expansion, I could see some of the top software stocks in the stock market today being in focus. After all, you could argue that software is the lifeblood of most, if not all tech around us today. This would be the case as the programming that directs most electronics is based on software. Because of this, the software industry’s growth runway could virtually grow as long as tech continues to evolve. Now, regardless of how the market fares, there are plenty of options for investors to choose from.
For instance, the fintech industry relies heavily on software to operate, to say the least. Evidently, the likes of PayPal (NASDAQ: PYPL) and Square (NYSE: SQ) provide contactless transaction services through software. Across the globe, consumer demand for both companies’ offerings continues to rise amidst the pandemic. Likewise, both PYPL stock and SQ stock are already sitting on gains of over 200% since their pandemic era lows. If that wasn’t enough, Square is also looking to create a “decentralized finance business” focusing on Bitcoin. Given the recent attention around the blockchain software that encompasses the cryptocurrency, Square appears keen to expand its horizons.
At the same time, there are countless other relevant software stocks in our tech-reliant world today to consider investing in. Looking towards the health care industry? The likes of Veeva (NYSE: VEEV) continue to serve biotech companies via its cloud-computing wares. Should you be keen to invest in digital acceleration trends? Some would consider customer relationship management company Salesforce (NYSE: CRM). All in all, the stock market seems to have plenty to offer in terms of software stocks. Could one of these be a top pick now?
Best Software Stocks To Watch This Month
- Intel Corporation (NASDAQ: INTC)
- Microsoft Corporation (NASDAQ: MSFT)
- Zoom Video Communications Inc. (NASDAQ: ZM)
Intel Corporation
Intel is a multinational technology company that is headquartered in Santa Clara, California. It is an industry leader and creates world-changing technology. The company has been investing heavily in its chip design and software. Last month, it showcased multiple groundbreaking network deployments and unveiled its Intel Network Platform at the MWC 2021 virtual event. It also announced new additions to its leading product portfolio for 5G and edge, reaffirming its position as the leading network silicon provider. INTC stock closed Monday’s trading session at $54.64 a share.
Recently, the company received an $85 price target from Baird. Baird analyst Tristan Gerra reiterated an Outperform rating on the company. The analyst also notes that Intel is in talks to buy GlobalFoundaries. GlobalFoundaries is a semiconductor manufacturer and the deal with Intel could be worth $30 billion. Intel’s CEO Pat Gelsinger is focusing on growing the company’s foundry operations and building chips for other companies. Also, by buying GlobalFoundaries, it would give Intel more manufacturing capacity and a larger customer base.
Last week, the company declared a quarterly dividend of $0.347 per share on the company’s common stock and the dividend will be payable on September 1, 2021. It has also been firing on all cylinders as it announced a slew of new products last month. Notably, it announced its latest 3rd Gen Intel Xeon Scalable processors that will power the next generation of supercomputers and high-performance systems. With so many exciting things happening to the company, will you consider adding INTC stock to your portfolio?
Read More
Microsoft Corporation
Next on this list is Microsoft. The company has also been actively helping businesses transform and adopt digital tools with its cloud technology and co-innovation approach. Earlier in the year, the company announced industry-specific cloud solutions with security and privacy built-in. MSFT stock currently trades at $277.01 apiece as of Monday’s close and has been up by over 25% year-to-date.
Last week, Teladoc Health (NYSE: TDOC) and Microsoft announced that they are teaming up to offer virtual care integration for health systems and hospitals. In detail, Teladoc Health’s Solo platform for hospitals and health systems will be integrated into the Microsoft Teams environment. This would strengthen physician and patient access to best-in-class virtual health care. Together, they will be able to deliver integrated, enterprise solutions that will help make the overall experience of virtual care more efficient. The collaboration will also deliver a seamless and unified experience for health care providers, leveraging leading data, artificial intelligence, and machine learning expertise from both companies.
In Microsoft’s latest quarter financials that were reported in April, it announced that revenue was $41.7 billion, an increase of 19% year-over-year. Operating income was $17 billion for the quarter, up by 31% compared to a year earlier. Microsoft also posted a net income of $15.5 billion or diluted earnings per share of $2.03 for the quarter. The company attributes this quarter’s growth to its Microsoft Cloud business, growing by over 30% in the quarter. All things considered, will you watch MSFT stock?
[Read More] 5 Electric Vehicle Stocks To Watch After Ford Boosts Spending On EVs
Zoom Video Communications Inc.
Another major name in the software space now would be Zoom Video Communications Inc. For the most part, this was more true than ever at the early phases of the pandemic. While most people were homebound and disconnected, Zoom’s services stepped up to the plate. Even now, the company’s services remain vital as certain parts of the world continue to fight the pandemic. Additionally, fears over another wave of coronavirus are circulating. In turn, I can imagine that investors would be keeping an eye on ZM stock as well. With the company’s shares trading at $354.20 at the end of Monday’s trading session, could it be worth buying at these levels?
While that remains to be seen, Zoom seems to be keen on staying relevant in the cloud communications industry now. As of yesterday, the company will be acquiring cloud contact center provider Five9 in an all-stock transaction worth $14.7 billion. This would mark the tech industry’s second-largest U.S. deal this year. With the addition of Five9, Zoom would be bolstering its Zoom Phone cloud phone system by optimizing its lines further. Not to mention, Zoom will also have access to Five9’s pool of clients which cater to billions of customers annually.
While most would expect the distance communication giant to slow down amidst vaccine rollouts, Zoom continues to build its portfolio. Notably, it is doing so with post-pandemic relevance in mind. Time will tell if the company can make the most out of this massive play. Should things go as planned, would you consider ZM stock worth watching?
