Are These Top Software Stocks Worth Investing In Right Now?
If you can read this article now, you have software to thank for that. Indeed, software is a crucial component of the world around us today. Because of this, software stocks remain a key area of interest among tech investors. Sure, you could argue that the industrials and other top cyclical stocks would appear more attractive right now. Given that President Joe Biden just revealed a $2 trillion infrastructure and economic package yesterday, I don’t blame you. However, most tend to forget that software plays a vital role in day-to-day industrial operations as well. Large names in the industrial software sector such as Honeywell (NYSE: HON) have already surged past their pre-pandemic share values now.
Not to mention, as more aspects of our lives become digitized, software will likely continue to evolve and grow. Take tech giant Google (NASDAQ: GOOGL) for example. Earlier this week, the company announced two major updates to its Google Maps navigation app. First, users will soon be able to navigate the inside of buildings with the help of augmented reality (AR) software.
Next, the app will also begin suggesting eco-friendly routes to users as well. This feature works via carbon emission and real-time weather analysis software. Above all, change remains a constant in our world today and software seems to be keeping up with changes. Given all of this, could one of these top software stocks to watch be your next big investment?
Top Software Stocks To Buy [Or Avoid] Now
- Wah Fu Education Group Ltd (NASDAQ: WAFU)
- Microsoft Corporation (NASDAQ: MSFT)
- Intrusion Inc. (NASDAQ: INTZ)
- Sprout Social Inc. (NASDAQ: SPT)
Wah Fu Education Group Ltd
Starting us off is Wah Fu Education Group Ltd, an up-and-coming player in the online education market. In brief, the company offers online exam preparation services and related tech solutions. Through its online education services division, the company operates an online education platform. For the most part, institutions of higher learning such as universities and vocational colleges rely on Wah Fu’s services.
Given the heavy reliance on digital learning over the past year, Wah Fu’s offerings would be in demand now. Likewise, WAFU stock appears to be in high demand among investors now, having tripled in value year-to-date. In fact, the company’s shares surged by over 50% yesterday on account of its latest financial update.
In detail, Wah Fu posted stellar figures in its first half of fiscal 2021 report on March 31. The company saw a massive 72% year-over-year surge in total revenue. Wah Fu cites its growing business-to-business-to-consumer revenues as a key factor to its solid performance. As you’d expect, this was likely fueled by education and examination services being pushed into the virtual space. Time will tell if Wah Fu can leverage its existing education partner network to generate long-term growth. In the meantime, would you consider WAFU stock a buy?
It would be tough to talk about software without mentioning tech giant Microsoft. In terms of software, the company is the developer of the world’s most prominent office software now, Microsoft Office. Aside from that, Microsoft is also a major player in the cloud computing space with its Microsoft Azure platform. No doubt, its comprehensive software portfolio has benefitted from both consumers and enterprises throughout the pandemic. With the company’s recent developments, I could see investors continue flocking towards MSFT stock.
For starters, it was recently reported that Microsoft is in “exclusive talks” to acquire messaging platform Discord Inc. According to the Wall Street Journal, Microsoft could be offering upwards of $10 billion in this deal. Seeing as Discord is mostly favored by gamers, Microsoft could be looking to bolster its gaming division. After all, with Discord, Microsoft would have gained actionable insights into consumer gaming preferences across the board. This could help the company develop games suited to these preferences, possibly boosting sales.
Meanwhile, it was revealed yesterday that Microsoft has won a $21.8 billion contract with the U.S. Army. Said contract will be to build custom AR headsets and related software for soldiers. Ideally, Microsoft believes that this tech could make soldiers more efficient while keeping them safe. The tech would provide navigation, thermal imaging, and weapon trajectory estimates in an overlaying device worn by soldiers. Across the board, Microsoft seems to be bolstering its portfolio, could this boost MSFT stock further?
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Next, we will be looking at Intrusion Inc. In short, the company is a global provider of cybersecurity solutions. Primarily, the company specializes in entity identification, high-speed data mining, cybercrime, and persistent threat detection. According to Intrusion, the company’s innovative offerings help businesses of varying sizes protect their digital assets. This would make it a go-to for cybersecurity investors given the prominence of cyber threats in our world today. Accordingly, INTZ stock saw gains of over 18% during intraday trading yesterday after revealing its latest client.
Namely, Intrusion now provides network protection services to global consumer products company, Kimberly-Clark (NYSE: KMB). Through its Shield software, Inclusion can eliminate malicious content without slowing down KMB’s network operations. On top of that, it can also provide actionable threat intelligence while doing so. KMB cites the seamless and effective set-up of Intrusion’s software as a primary reason for its choice.
This would be the case as Shield can plug directly into KMB’s network and “instantly reduce risk” by leveraging artificial intelligence tech. Seeing as KMB has operations in over 175 countries, this is a massive deal for Intrusion. All things considered, will you be adding INTZ stock to your portfolio?
Following that is social media software company, Sprout Social Inc. The Illinois-based company offers deep social media analytics, social management, customer care, and advocacy solutions. Through its unified platform, Sprout employs the power of social media to provide organizations with valuable data and actionable insights. Given these insights, customers can then drive their businesses forward.
In terms of scale, Sprout caters to over 25,000 global brands and agencies of all sizes. Some of its notable clients include Shopify (NYSE: SHOP) and Subaru (OTCMKTS: FUJHY). Seeing as Sprout operates across all major social media platforms, it would be a vital business partner to have now. SPT stock is looking at gains of over 300% in the past year after gains of 8% yesterday.
Despite an overall lack of major news from the company, investors appear keen to jump on SPT stock now. Well, the company has been on a roll on the financial front. Evidently, Sprout has seen continued revenue growth over the past three years. In its recent quarter fiscal, the company posted a sizable 32% year-over-year increase in total revenue. With businesses looking to refine their social media engagements more now, could SPT stock have more long-term growth potential?