5 Top Software Stocks Worth Checking Out Right Now
After a week of uncertainty in the stock market due to escalating fears of war between Ukraine and Russia, there could be light at the end of the tunnel. At least, it appears that U.S. Secretary of State Antony Blinken has accepted an invitation to meet with Russian Foreign Minister Sergey Lavrov next week. While such diplomatic talks may not result in anything, it could still ease the minds of investors. And that may be enough to encourage more investors to look for beaten-down stocks. In particular, software stocks may fit the bill as many of them saw their stock prices faltering over the past months.
Whether you realize it or not, most devices we use in our daily lives rely on some form of software. For example, a mobile device or computer would not be able to function without its designated software. Not only does it bring its hardware counterpart to life, but good software can also make devices more efficient.
With that said, should it be surprising that a software company like Cisco (NASDAQ: CSCO) continues to impress despite component shortage and supply-chain issues? During its recent fiscal second-quarter earnings report, its product orders increased by 33% year-over-year. This makes it the third straight quarter of 30%-plus order growth. All in all, software companies will likely continue to thrive in a world that revolves around technology. So, here are some of the top software stocks in the stock market today.
Software Stocks To Watch Right Now
- Alteryx Inc (NYSE: AYX)
- salesforce.com, inc. (NYSE: CRM)
- Upstart Holdings Inc (NASDAQ: UPST)
- Oracle Corporation (NYSE: ORCL)
- International Business Machines Corporation (NYSE: IBM)
Alteryx is a data analytics software company. Put simply, it provides a subscription-based platform that allows organizations to prepare and analyze data from various sources. Furthermore, its platform is capable of processing data from cloud applications, such as Google Analytics, Salesforce, Workday, and others. Last week, the company announced that it has completed the acquisition of Trifacta, a company that offers cloud-first capabilities. So, Alteryx can now accelerate its journey to provide an integrated end-to-end, low-to-no code analytics automation platform in the cloud to service the needs of enterprises.
On Tuesday, Alteryx announced its financial results for the fourth quarter and full-year 2021. It reported a revenue of $173.8 million for the quarter, representing an increase of 8% year-over-year. Meanwhile, its adjusted earnings per share were $0.17, exceeding Wall Street’s estimates of $0.05. Furthermore, the company added 247 net new customers for the quarter, up 12% year-over-year. Alteryx closed the year with plenty of positives and is well-positioned to continue to drive growth and accelerate its journey to the cloud. With that said, would you add AYX stock to your watchlist?
Following that, we have the customer relationship management (CRM) software company, Salesforce. Put simply, its Customer 360 platform delivers a source that connects customer data across systems, applications, and devices to help companies conduct commerce from anywhere. Besides that, its software is also used for application development, analytics, and marketing automation among others. With more than 150,000 companies utilizing its software to grow their businesses, Salesforce is one of the best at what it does.
Earlier this month, the company announced Safety Cloud to help businesses and communities to get closer together safely. In brief, it will streamline COVID-19 testing and health status reporting with agility and precision on a single platform. In a recent Salesforce employee survey, it appears that 77% of employees wish to get together in-person with their teams. Besides, there is data that illustrates that getting people together is imperative to building and maintaining culture while boosting employee retention and satisfaction. All things considered, would CRM stock be a top software stock to watch?
Another trending software company trending lately would be Upstart. Essentially, it offers a platform that aggregates consumer demand for loans and connects it to its network of Upstart AI-enabled bank partners. Its configurable platform allows each bank to define its own credit policy and determine the significant parameters of its lending program. Despite bearish sentiments around many fintech stocks over the past few months, UPST stock has been picking up pace recently, rising more than 25% over the past month.
Well, its recent fourth-quarter and full-year 2021 earnings report is likely the catalyst for this movement. The company’s revenue came in at $305 million, up by a staggering 252% compared to the prior year’s quarter. This is coupled with a GAAP net income of $58.9 million, up from $1.0 million in the fourth quarter of 2020. Overall, with triple-digit growth and record profits across the board, it was an exceptional year for the company. Upstart believes that 2021 will be remembered as the year AI lending came to the forefront and the best is yet to come. Given such an impressive financial showing, would you consider UPST stock a bargain at its current price?
Oracle is another top name in the industry that needs little introduction. For those unaware, its products and services include applications and infrastructure offerings that are delivered through a variety of IT deployment models. So, its customers can build, deploy, run and support their internal and external products and business operations. Although ORCL stock has been struggling in recent months, it has still risen more than 20% over the past year.
Earlier this week, Oracle announced that Indian telecom company Bharti Airtel has chosen Oracle Fusion Cloud Enterprise Resource Planning and Oracle Fusion Cloud Supply Chain & Management to digitize and simplify its finance and supply chain processes. Thus, these applications would help Airtel to automate manual processes, and gain an on-demand 360-degree view of its financial data. With more companies adopting Oracle’s software and cloud applications, it bodes well for the company’s growth prospects. Therefore, should you be keeping a closer tab on ORCL stock?
Last but not least, we will be looking at the tech giant, International Business Machines (IBM). The company operates through various segments such as Cloud & Cognitive Software, Global Business Services, Systems, and Global Financing. Through its Cloud and Cognitive segment, it delivers integrated and secure cloud, data, and AI solutions to its clients. Much like its peers within the industry, IBM stock has been under pressure lately. Could this be a good opportunity to buy on the dip?
After all, IBM is not resting on its laurels. For instance, the company recently announced the acquisition of Neudesic. This is a leading U.S. cloud services consultancy that primarily specializes in the Microsoft (NASDAQ: MSFT) Azure platform. Needless to say, it will significantly expand IBM’s portfolio of hybrid multi cloud services and further advance its cloud and AI strategies. Keeping this in mind, would you bank on the future of IBM stock?