Are These The Top 3 Enterprise Software Stocks To Buy This Week?
Enterprise software stocks have been some of the hottest performers this year. The surge in top software stocks would partly explain Nasdaq’s monumental all-time highs achieved recently. Much of the fundamental strengths were no doubt, accelerated by the novel coronavirus when the world suddenly found the need for remote work and online learning. Beginning of this year, analysts from Wells Fargo (WFC Stock Report) were spot on when they said top enterprise software stocks will head higher this year.
The thesis? Enterprise software spending is expected to pick up this year, and it wasn’t because of the pandemic. That’s simply because corporations hit the pause button for robust enterprise software spending 2019 for two major reasons. Firstly, most corporations were on a spending spree back in 2018 when it comes to enterprise software, so there wasn’t a need to further spend on this area really. Secondly, uncertainties created by geopolitical tensions have certainly occupied the minds of executives who may not want to spend big. Little did we know that the coronavirus pandemic will be the major catalyst for the software pack, sending some of the top software stocks to their all-time highs levels. One of the best performers in the space was Fastly (FSLY Stock Report). The stock reached its all-time highs before sliding after getting caught in the crosshairs over the TikTok ban.
Of course, markets have expressed their preference for remote software stocks, judging by their performance. And the current trend will likely drive these stocks to new highs. Admittedly, not all investors are interested in chasing growth. Some prefer value stocks. But however, you want to look at it, you can’t deny that some of these stocks continue to have a lot of potential. Are the following stocks on your watchlist?