Looking For The Best Software Stocks To Buy Now? 3 Names To Consider
Software stocks witnessed robust growth in the stock market this year. Understandably, software has become a fundamental medium for a lot of things to function. This is because the coronavirus pandemic forced companies to boost corporate spending on digital acceleration. Because of this, many of the top software stocks are seeing their best year on the stock market. Key sectors of interest include enterprise software-as-a-service (SaaS), cloud computing, and cybersecurity. All of them optimize the way we work in the digital space.
Companies that facilitate and streamline work operations, in particular, have flourished. Slack (WORK Stock Report) and ServiceNow (NOW Stock Report) are prime examples of this. Their share prices have more than doubled since the March lows. On one hand, Slack provides a means of communicating with co-workers which is paramount when working on projects. On the other, ServiceNow provides managers with a means of optimizing productivity via digital workflow planning. Next, the cloud computing front is also another growing area of the software industry. With the likes of Google (GOOGL Stock Report) joining the competition, investors are definitely watching closely. Finally, recent news of the U.S. government hack has also emphasized the grave importance of cybersecurity.
If you have been following StockMarket.com, you would know that investors are spoiled for choices of which are the best software stocks to buy now. The real challenge is picking the right ones. Considering how fast-paced the industry as a whole is, investors should be aware of who is keeping up with the times. To help with that, here is a list of the best software stocks to watch this holiday-shortened week.
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Top Software Stocks To Buy [Or Avoid] This Week: Palantir Technologies Inc.
First up, we have the software darling of the U.S. government, Palantir (PLTR Stock Report). Despite only having its public offering back in September, PLTR stocks tripled in value and reached a high in late November. Since then, it has taken a breather. Yesterday, it climbed nearly 10% after a positive announcement from the company. Let’s take a closer look.
On December 21, it was reported that Palantir secured two major deals. The first agreement with the U.S. Army added up to $113.8 million for the continuation of an ongoing project. The project in question is the Army Vantage program which started in December 2019. Palantir Global Defense Lead Doug Philippone said, “Vantage continues to fulfill its mission of helping the U.S. Army make the best possible use of its data.” Second, Palantir has also been awarded a $30 million contract by the U.K.’s National Health Society (NHS) as well. The allocation is part of the deal for Palantir to continue working on the NHS’s coronavirus data store. All this definitely bodes well for the company as it means solid sources of income from clients with deep pockets.
From its third-quarter fiscal report, Palantir saw a 52% jump in total revenue year-over-year. On top of that, the company raised its fiscal 2020 guidance to a 44% gain compared to fiscal 2019. The company appears to be confident about its current trajectory. Rightfully so, as Palantir’s reputation is growing steadily with so many governments relying on its services. As a result, investors may be feeling pretty good about PLTR stock’s long-term growth potential going into 2021. What about you?
Top Software Stocks To Buy [Or Avoid] This Week: SS&C Technologies Holdings, Inc.
Next up, we have SS&C (SSNC Stock Report). For the uninitiated, SS&C is a Connecticut-based financial technology company. It mainly provides software and SaaS to the financial services industry. Notably, SSNC stocks have recovered remarkably well from the impacts of the coronavirus. This is evident as it has doubled in share price since the stock market crashed in March. Investors may be wondering if SS&C has anything else up its sleeves at the moment.
Last week, it acquired Millennium Consulting Services (MCS) and Millennium Seminar Services (MSS). The two work together to provide a broad array of consulting and training services to insurance companies and insurance regulators. MCS will work to bolster SS&C’s statutory outsourcing, investment outsourcing, quality control reviews, and advisory services. Additionally, MSS will further enhance SS&C’s insurance offerings. SS&C CEO Bill Stone said, “The Millennium companies have extensive experience working with more than 70 U.S. health, property and casualty, life insurance, risk retention groups and captive clients of all shapes and sizes.” This is looking to be an excellent play by SS&C as the company is expanding its portfolio. It seems that it is gearing up for 2021 already.
In fact, the company reported total revenue of $1.15 billion for its recent quarter back in October. It saw a 66% year-over-year leap in earnings per share. Considering its solid financials and a growing portfolio, SS&C does not appear to be slowing down. If anything, there are ample reasons for eagle-eyed investors to be watching SSNC stock. Will you be doing the same?
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Top Software Stocks To Buy [Or Avoid] This Week: RealPage Inc.
Finally, we have RealPage (RP Stock Report). RealPage is a Texas-based multinational corporation that provides software and data analytics to the real estate industry. More importantly, RP stock prices jumped by over 28% on Monday. This came after news of its acquisition by leading private equity investment firm Thoma Bravo for $10.2 billion in cash.
CEO Steve Winn said, “We believe this transaction will provide immediate and substantial value to RealPage stockholders, reflecting the tremendous work that our employees have done to build this company. I am immensely proud of that work and also pleased that the transaction will provide us the opportunity to work with Thoma Bravo, a firm with tremendous software investment and operational capabilities. This will enhance our ability to focus on executing our long-term strategy and delivering even better products and services to our clients and partners.” Thoma Bravo commented that RealPage is “critical to the real estate ecosystem and has tremendous potential going forward”.
Recall that the company reported a rather fruitful quarter in November. In its third-quarter fiscal, the company reported bringing in $298 million in total revenue. On top of that, it saw a 33% year-over-year rise in earnings per share. All this paired with the backing of Thoma Bravo sets up an exciting time for RealPage going into 2021. With these positive developments, would investors in RP stock rejoice?
