Do You Have These Software Stocks On Your Radar Now?
Amid the volatility in the stock market over the past year, many investors may argue that software stocks are potentially a bargain at their current valuation. That is especially when one looks at their long-term prospects. After all, most people will agree that software will play a pivotal role in the growth of many industries, if not already. For instance, fintech company Upstart (NASDAQ: UPST) recently announced Upstart AI Lending for Salesforce on the Salesforce AppExchange. This integration can help financial institutions to modernize lending while staying competitive to provide better service to their clients. Thus, this could potentially revolutionize the financial industry.
Furthermore, the pandemic also highlighted the importance of software in our daily lives. It is well documented that there has been an increase in cyberattacks over the past two years. A10 Network’s (NYSE: ATEN) cybersecurity software detected a dramatic increase in the scope and intensity of cybercrimes. Recently, its research team tracked more than 15.4 million DDoS weapons. In addition, obscure potential amplification weapons such as Apple Remote Desktop also more than doubled in incidence over the past year. These are cyber threats that may disrupt important services that people rely on every day. Therefore, it would not be surprising if software stocks make a strong comeback one day. If this resonates with you, here are some of the top software stocks in the stock market today worth checking out.
Software Stocks To Watch In May 2022
- Black Knight Inc (NYSE: BKI)
- Uber Technologies Inc (NYSE: UBER)
- Confluent Inc (NASDAQ: CFLT)
- Paycom Software Inc (NYSE: PAYC)
Black Knight provides integrated software, data, and analytics solutions around the world. The Software Solutions segment offers software and hosting solutions. This includes MSP, Servicing Digital, Loss Mitigation, Empower, and HELOCs. Aside from that, the segment also provides LoanCatcher, a cloud-based loan origination system designed for brokers. BKI stock has been catching the attention of investors lately. This comes after the New York Stock Exchange parent Intercontinental Exchange (NYSE: ICE) said that it plans to acquire Black Knight in a deal valuing the company at $13.1 billion.
As a result, BKI stock is currently up by over 8% over this past trading week. Furthermore, Black Knight’s Optimal Blue also announced the release of Quick Quote. This is a new capability for its cloud-based Loansifter product, pricing, and eligibility engine for mortgage brokers. With this, brokers can make accurate quote offers for products and scenarios available to consumers at their immediate point of need. Thus, enhancing both the borrower experience and a broker’s production with a seamless transition process. Given these exciting developments, would you jump on the BKI stock bandwagon?
Uber Technologies is a top consumer company that leverages software for its core businesses. The mobility-as-a-service provider has operations in over 900 metropolitan areas around the globe. Its services range from ride-hailing to food delivery services through its Uber Eats and Postmates platform. On a sense of scale, Uber has a 68% market share in ride-sharing and a 26% market share in food delivery. That said, UBER stock has been struggling over the past year, to say the least. At its current valuation, some may argue that it is an interesting investment opportunity. After all, several recent developments would support this stance.
For starters, the company and Albertsons (NYSE: ACI) announced earlier this week an expansion of their partnership. This extension will include more than 2,000 of the grocer’s banner stores nationwide. In light of this, Uber Eats will have access to approximately 800 new locations in the U.S. Moreover, Uber’s recent first-quarter financials also pack plenty of reasons for optimism. Its revenue more than doubled to $6.9 billion, representing an increase of 136% year-over-year. Also, its Gross Bookings improved to $26.4 billion, up 35% compared to the prior year’s quarter. Overall, Uber appears to be trending in the right direction. With that said, would UBER stock be a viable investment right now?
Following that, we have the data-in-motion-focused company, Confluent. In detail, it engages in the design of data infrastructure to connect applications, systems, and data layers around a real-time central nervous system. The company allows enterprises to deliver customer experiences for their teams, applications, and data stores to have connectivity. Additionally, software developers can build their applications to connect and make data in motion for everything they do. CFLT stock has been under pressure since the start of the year.
Well, it is noteworthy that the company announced several new capabilities in April. For instance, there will be new role-based access controls that enable granular permissions on the data plane level. Besides that, Confluent also introduced the Expanded Confluent Cloud Metrics API that delivers enterprise-wide observability to optimize data streaming performance. Safe to say, these new capabilities will likely be appreciated by businesses that aim to bring their data streaming workloads to the cloud. So, do you believe CFLT stock can see brighter days ahead?
To sum up the list, let us look at the cloud-based human capital management provider, Paycom Software. Essentially, the company provides software-as-a-service solutions. Its software provides functionality and data analytics that corporations need to manage the complete employment life cycle from recruitment to retirement. Therefore, helping companies to make difficult employment decisions with proper employee information analysis. PAYC stock has managed to eke out a small gain of over 5% in the last 5 trading days, despite broad market volatility.
This comes after the company announced its first-quarter earnings report this past week. Paycom opened fiscal 2022 with strong sales momentum across the board. Its revenue increased to $354 million, an increase of 30% year-over-year. Meanwhile, its GAAP net income was $91.9 million, or $1.58 per diluted share. This reflects a 42.3% growth compared to the prior year’s quarter. So, it should not be surprising if investors are sharing the confidence that the company has right now. With that in mind, would you consider PAYC stock as a top software stock to watch?