3 Software Stocks Set to Lead Market Surge

3 Software Stocks Set to Lead Market Surge

Posted On November 20, 2023 10:34 am

Despite macroeconomic uncertainties, the software industry’s prospects look bright due to continued digital transformation and the increasing inclination toward innovative technologies like generative AI. Given this backdrop, it could be wise to own fundamentally strong software stocks GoDaddy Inc. (GDDY – Get Rating), Agilysys, Inc. (AGYS – Get Rating) and OppFi Inc. (OPFI – Get Rating).

Before delving deeper into their fundamentals, let’s discuss what’s happening in the software industry.

According to Gartner, global software spending will reach $1.04 trillion in 2024, a rise of 13.8% year-over-year. The increased need for cloud-based software solutions and digital transformation initiatives across industries should drive this growth. Also, the increasing application of machine learning and AI technologies will likely brighten the industry’s prospects.

The software market in the U.S. is predicted to grow at a 4.2% CAGR until 2028, resulting in a market volume of $414.70 billion. Enterprise Software is expected to be the market leader, with a forecast market volume of $139.20 billion in 2023.

Moreover, investor’s interest in software stocks is evident from the iShares Expanded Tech-Software Sector ETF’s (IGV) 22.3% returns over the past six months.

In light of these encouraging trends, let’s look at the fundamentals of…

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