4 Hot Software Stocks To Watch Before September 2021
Software stocks are among the most important industries in the stock market right now. This is especially true due to the rapidly advancing technology in the world we live in today. And software plays an integral part in this advancement. Just look at some of the electronics we have today, most of them are programmed by software that makes them work. 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 software stocks for investors to choose from.
For instance, some of the largest software companies in the world are the likes of Microsoft Corporation (NASDAQ: MSFT) and Apple Inc (NASDAQ: AAPL). Most would be familiar with their operating systems that include Microsoft Windows and macOS. These are the software that run our computers today on a daily basis. Now, could you imagine what the world would be like without software? Well, one thing is for sure, we would not be able to enjoy the convenience provided by technology. So, would a list of four of the top software stocks in the market today interest you?
Top Software Stocks To Watch Now
- Unity Software Inc (NYSE: U)
- McAfee Corp (NASDAQ: MCFE)
- Palantir Technologies Inc (NYSE: PLTR)
- salesforce.com, inc (NYSE: CRM)
Unity Software
Unity is a platform for creating and operating interactive, real-time three-dimensional content. The platform provides a set of software solutions to create, run and monetize interactive, real-time two-dimensional (2D) and three-dimensional (3D) content for mobile devices, personal computers, consoles, and augmented and virtual reality devices. The company’s stock is up by 14% just this week.
This movement was largely driven by its second-quarter earnings report that was announced last week. Unity reported revenue of $273.6 million, representing an increase of 48% year-over-year. This marks yet another consecutive quarter of 30% or greater growth as the company crosses $1 billion in annual revenue run rate. The strong financial quarter has allowed the company to raise its full-year guidance for 2021.
On top of that, Unity has also entered into a definitive agreement to acquire Parsec, a high-performance desktop and streaming tech company. With companies transitioning to a more hybrid working model, Parsec will allow gaming and creative professionals to work together from anywhere. This acquisition is an important step for both companies to expand their long-term cloud vision, where creators will have the freedom to work from any location. All things considered, would you buy U stock?
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McAfee
Next up, we have a software company that specializes in cybersecurity, McAfee. Its consumer solutions are able to adapt to the needs of millions of users all over the world. Furthermore, the company’s software is used to protect over 600 million devices and queries over 60 billion daily real-time threats. MCFE stock has been up by over 60% since the start of the year.
The company provided its second-quarter earnings report last week. It reported revenue of $467 million, up by 22% year-over-year. Also, its net income was $108 million, almost five times compared to the previous year’s quarter. Most importantly, the company’s services are continuously being adopted by new customers. It was able to add 556,000 net new direct-to-consumer subscribers for the quarter. Overall, this puts the company in a strong position to achieve its financial targets for the year.
Furthermore, McAfee has also been stepping up its game to reach more customers. Last month, the company partnered with Visa Inc (NYSE: V) to enable Visa financial institution partners in North America and EMEA to offer McAfee’s cybersecurity services to Visa Business cardholders. Those interested will be able to save up to 40% on a two-year subscription on comprehensive McAfee solutions. Given these initiatives, would you consider investing in MCFE stock?
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Palantir Technologies
Palantir Technologies specializes in big data analytics and also provides cybersecurity services. Through its comprehensive software portfolio, the company caters to a wide array of end markets. The likes of which include the military, health care, and defense industries among other government bodies.
In July, the U.S. Department of Health and Human Services (HHS) renewed its commitment to working with the company to support COVID-19 vaccine distribution for another year. Palantir will provide its software platform to help manage the vaccine distribution strategy, and enable international distribution. With this, it aims to improve the efficacy of vaccination programs. The confidence shown by the U.S. HHS in the company’s software platform is a testament to its service excellence.
The company delivered yet another impressive financial quarter last week. For its second quarter, its revenue grew by 49% year-over-year to $376 million. Palantir also obtained 20 new customers for the quarter, total customers up by 13% quarter-over-quarter. Overall, the company’s fundamentals are trending in the right direction with room for growth. So, do you think that PLTR stock will have more room to run?
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Salesforce.com
To sum up the list, we have Salesforce.com. The company focuses on customer relationship management (CRM) technology. Its Customer 360 platform delivers a source that connects customer data across systems, applications, and devices to help companies service and commerce from anywhere. Impressively, the company has been consistently ranked as the world’s #1 CRM platform. More than 150,000 companies use its platform to grow their businesses by strengthening customer relationships.
Recently, the company is tapping into the streaming services space. It announced Salesforce+, a new streaming service with compelling live and on-demand content for every role, industry, and line of business. Salesforce+ includes live experiences, original series, podcasts, and other programming. With it, it aims to inspire and motivate everyone to succeed in this digital-driven world.
Not to mention, Salesforce finally completed the acquisition of Slack Technologies, Inc last month. Together, both companies will define the future of enterprise software and create the digital HQ that enables every organization to deliver customer and employee success from anywhere. This would allow the company to serve its customers the best it could in the long term. Given all these, would you consider CRM stock as a top software stock to watch?
