3 Best Enterprise Software Stocks To Watch This Month
As strong earnings continue to drive the broader stock market higher, investors may want to look at enterprise software stocks. For the most part, this would be thanks to the industry’s link to, well, businesses and organizations. The likes of which continue to ramp up their operations as the economy recovers and we return to normalcy. We could take a look at the earnings stars from yesterday, for instance. Whether it is consumer staples giants like Procter & Gamble (NYSE: PG) or consumer discretionaries like Netflix (NASDAQ: NFLX), everyone relies on enterprise software. Not to mention, as companies continue to grow, so too would the need for such services in the long term.
If anything, the industry continues to make headlines with massive deals across the board. Just last week, GitLab (NASDAQ: GTLB), a developer-focus software platform, went public. The company is currently worth over $15 billion. Elsewhere, enterprise software developer Informatica is looking to make a comeback to the stock market. It is currently targeting a valuation of up to $9 billion, according to a statement released on Monday.
Aside from all that, some of the leading names in the space remain hard at work as well. Namely, Zoom (NASDAQ: ZM) and HP (NYSE: HPQ) are now collaborating with a New York-based prefab office pod maker, Room. Through this partnership, the trio are working on Room for Zoom, a soundproof office pod specifically designed for video conferencing. All in all, the bull thesis on enterprise software stocks remains, arguably, intact. Could that make one of these enterprise software providers top picks in the stock market today?
Top Enterprise Software Stocks To Buy [Or Sell] In October 2021
- International Business Machines Corporation (NYSE: IBM)
- Salesforce.com Inc. (NYSE: CRM)
- Microsoft Corporation (NASDAQ: MSFT)
International Business Machines
Right off the bat, we have the International Business Machines Corporation or IBM for short. In brief, it is a multinational tech firm that operates in over 170 countries worldwide. Through a comprehensive suite of enterprise software solutions, IBM caters to the needs of countless global organizations. As such, it would make sense that investors are keeping an eye on IBM stock amidst the current momentum in the stock market.
If anything, IBM continues to find ways to grow its extensive portfolio of software offerings now. As of yesterday, the company is now planning to acquire the Adobe Workfront consulting unit to refine its hybrid cloud and artificial intelligence (AI) strategy. The consultancy primarily specializes in work management software consulting, synergizing well with IBM’s current partnership with Adobe (NASDAQ: ADBE). No doubt, it seems like IBM is not resting on its laurels on the operational front just yet. In fact, Mark Foster, senior VP of IBM Consulting said, “The ongoing investments IBM is making in consulting services with acquisitions like this one cement IBM as the partner of choice that clients turn to for their digital business transformation.”
Additionally, another reason to possibly keep track of IBM today would be its upcoming earnings call. After today’s closing bell, the tech giant is set to report its third fiscal quarter financials. All things considered, would IBM stock be a top watch on your watchlist now?
Following that, we will be taking a look at Salesforce. Most would know the company is an industry leader when it comes to customer relationship management (CRM) solutions. Alongside its top-tier CRM offerings, Salesforce also provides a suite of enterprise applications, complementing its flagship services. This includes but is not limited to marketing automation, analytics, and CRM app development. As consumer-related businesses continue to see an uptick in overall traffic ahead of the holiday season, Salesforce’s remains viable, nonetheless.
Because of all this, CRM stock could be another go-to for investors looking to jump on enterprise software trends now. Evidently, the company’s shares are already up by over 30% year-to-date. Despite its current pace, Salesforce does not seem to be slowing down in the least bit. Just yesterday, the firm announced the launch of Edge3 on its Salesforce AppExchange marketplace. For starters, AppExchange is Salesforces’ cloud marketplace that empowers businesses to build their digital fronts via a vast array of apps. To date, the platform boasts over 6,000 listings, 9 million customer installs, and over 110,000 peer reviews.
Now, going back to Edge3, it is a field inventory management solution. In practice, it serves to extend intelligence, visibility, and security over critical inventory items in the field for users. According to Edge3 developer ByBox, this enables clients to “turn field service into a strategic source of value and differentiation”. Simply put, it provides organizations with greater oversight over their on-field inventories. Ideally, this move could further expand Salesforces’ market reach. After considering all of this, will you be investing in CRM stock?
Topping off our list is one of, if not the most well-known enterprise software providers in the world, Microsoft. Notably, most would be familiar with the company’s wide arsenal of software solutions. This ranges from cloud computing and productivity software to cybersecurity and Internet-of-Things-based offerings. Given its strong presence across several booming tech industries, MSFT stock could be a top enterprise software stock to consider.
Overall, this would be the case as the pandemic has and continues to drive demand for Microsoft’s enterprise software. Since its pandemic era low, MSFT stock is now sitting on gains of over 120%. Alongside these gains, Microsoft also seems to be kicking into high gear on the financial front. In its latest quarterly earnings call, the company saw green across the board. Both its net income and earnings per share metrics grew by over 46% year-over-year. With Microsoft’s next earnings report set for next week, I could see investors eyeing MSFT stock now.
Impressive financials aside, Microsoft is not resting on its laurels just yet. As of this week, it is currently working with Babylon, a digital-first, value-based care company. The duo are now exploring opportunities to improve the affordability, accessibility, and quality of health care for individuals across the world. They aim to do via a combination of AI, machine learning, and cloud tech. With Microsoft looking to expand the applications of its tech globally, will you be adding MSFT stock to your portfolio?