3 Top Software Stocks To Watch This Week
It has been an invigorating year for software stocks on the stock market. Software serves as a vital medium for businesses and companies in this digital age. This is especially the case this year. Undoubtedly, this is due to the coronavirus pandemic forcing companies to focus on digital acceleration. As a result, top software stocks have made their recovery from the March stock market crash and are skyrocketing moving into 2021. This is not surprising as companies are constantly looking for new ways to improve and streamline their business models. With social distancing guidelines in one form or another in many locations, a lot of work is happening via the virtual space.
According to CompTIA, hardware, software, and services are projected to account for 56% of the global tech industry spending in 2021. This adds up to an astonishing $2.8 trillion. With such a big market, it is no wonder that investors are flocking to software stocks. We only need to look at some of the best software stocks such as Microsoft (MSFT Stock Report) and Adobe (ADBE Stock Report). These two industry titans have seen their share prices steadily growing throughout the last few years. In case you haven’t noticed, Adobe stock is up by over 400% in the last five years.
As you can see, the software industry has been and will likely continue growing even after the coronavirus pandemic. However, there is an ever-growing list of software companies emerging with varying types of products. Investors may be concerned as to which companies are worth investing in. With that said, here is a list of top software stocks for you to consider this week.
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Top Software Stocks To Watch This Week: PagerDuty
First up, we have PagerDuty (PD Stock Report). In brief, PagerDuty is a cloud computing company that specializes in SaaS incident response. The PagerDuty platform serves to alert clients to disruptions and outages through machine learning and automation in real-time. Moreover, the software operates as a standalone service or can be integrated into existing IT systems. It caters to the needs of a wide range of companies such as Zoom (ZM Stock Report), and Shopify (SHOP Stock Report).
Notably, its share prices are up by over 200% since the stock market crash in March. Based on its recent quarter fiscal posted last week, the company seems to be doing well. In it, PagerDuty reported a 26% year-over-year increase in total revenue. A reason for this success could be its 40% year-over-year rise in customers with annual recurring revenue of over $500,000. Investors may see this strong showing as a sign of potential long-term growth.
Recently, IT services and consulting giant Tata Consultancy Services (TCS) will be collaborating with PagerDuty. TCS will provide clients with solutions and services incorporating the PagerDuty platform. This project will be jointly handled by the two companies in a new solutions service center. More importantly, the service center will cater to joint customers worldwide. This benefits PagerDuty as it could expand its customer base. With all these developments, the company appears to be well-positioned to continue benefiting from the digital acceleration tailwinds this year. Given all this, do you think PD stocks are worth watching?
Top Software Stocks To Watch This Week: BlackBerry
BlackBerry (BB Stock Report), which used to be known for its smartphones, now specializes in enterprise software and the Internet of Things (IoT). It offers solutions in unified endpoint security and management, secure communications, and remote working. The company’s share prices are up by a massive 72% over the past month. Investors may be wondering why there is so much hype for its shares right now.
The company is slated to release its third-quarter fiscal on December 17. Let us take a look at its recent quarter fiscal posted in September. BlackBerry reported a 6% increase in total revenue year-over-year. Furthermore, it also reported an 81% rise in cash on hand in the same period. CEO John Chen attributed the company’s performance to continued demand for its ‘Work from Anywhere’ solutions. Accordingly, it was a major driver for the company’s zero-trust platform BlackBerry Spark. Undeniably, its digital security platform does fit the needs of the companies in the process of digital acceleration. This appears to have served the company well so far.
Recently, BlackBerry is reportedly working with Amazon (AMZN Stock Report) on IVY, a new cloud-based software platform. IVY will reduce the time taken to build, deploy, and monetize in-vehicle applications and connected services across multiple car brands and models. This makes it easier for automakers to collaborate with a wider pool of developers to accelerate the development of apps and services. It will run on BlackBerry’s QNX vehicle operating system which is found on 175 million vehicles worldwide. Could this possibly bring BB stock back to its former glory? You decide.
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Top Software Stocks To Watch This Week: Coupa Software
Finally, Coupa (COUP Stock Report) share prices are up by 44% in the past six months. It is a global software company that primarily operates via its platform, Business Spend Management (BSM). Coupa helps large clients gain visibility into, and control over the money and resources spent within their organizations through BSM. The BSM platform leverages collective insights from normalized data pulled from all customers. These are in the form of anonymized data and insights. Through this, Coupa customers can benchmark themselves off the community and industry. Its key clients include Salesforce (CRM Stock Report) and Office Depot (ODP Stock Report).
Investors could be watching the company closely as it is slated to release its third-quarter fiscal later today. In its second-quarter fiscal report in September, the company reported a 32% year-over-year increase in total revenue. Coupa cited its plethora of new customers and product innovations as a source of this impressive performance. Its product improvements helped customers with increased spend visibility, supply chain risk mitigation, and increased business agility to adapt to change. As a result, the company appears to be building a good reputation for itself amongst customers.
Recently, leading advisory and technology implementation firm, Spaulding Ridge announced a partnership with Coupa. Spaulding Ridge is the newest implementation partner in Coupa’s partner ecosystem. CEO Jay Laabs said, “We see many opportunities for our clients to replace legacy on-premises purchasing platforms with Coupa’s.” Markedly, Spaulding Ridge brings a diverse client portfolio to the partnership, spanning five continents and over 15 countries. This definitely bodes well for Coupa in terms of exposure to new clientele. In the long run, do you think COUP stock is worth buying?