We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
4 Software Stocks that Deserve a Place in Your Portfolio
Read MoreHide Full Article
Over the years, dynamics of the software industry, the ways in which organizations conduct their businesses and people connect with each other have changed, thanks to technological progress and innovation.
As technology continues its rapid invasion into every corner of human existence, the need for improved software has increased manifold. The last few years witnessed breakthroughs in cloud computing and artificial intelligence (A.I.) technology, chip shrinking technology, self-driving cars, personal assistants, high-speed Internet and home automation, thus setting the stage for robust growth in the software industry.
With the U.S. economy rebounding, as evident from the improving economic data for GDP, the Consumer Confidence Index, unemployment rate and factory activity data, we believe that there are tremendous growth opportunities for software stocks in the year ahead.
Notably, as per Gartner Inc. (IT - Free Report) , worldwide spending on software reached $333 billion in 2016, registering year-over-year increase of 5.9%. The independent research firm predicts that spending will rise 6.8% in 2017 to reach $355 billion. This is much higher than the projected rate of 2.7% increase in spending for the entire tech industry.
Furthermore, software stocks with solid earnings continue to do well in comparison with other sectors. During the last earnings season, most of the software stocks reported positive earnings surprises.
So far this year, the software industry has had a remarkable run in the stock market, with iShares North American Tech-Software (IGV) registering a return of 16.3%. This 58-stock ETF provides exposure to the software segment of the broader U.S. technology space.
The ETF surpassed Technology Select Sector SPDR ETF’s (XLK - Free Report) , which comprises U.S. technology stocks, return of 10.5% as well as Dow Jones Industrial Average DJI, NASDAQ Composite IXIC and S&P 500’s GSPC gain of 5.9%, 9.6% and 6.4%, respectively.
As software promises a bright future in the year ahead, we believe adding some of these stocks to your portfolio will help boost returns.
4 Software Stocks with Solid Potential
With the help of our style score system, we have picked four software stocks that have performed well so far this year and have the potential to keep the momentum going in the next year. They also have a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Style Score of “A” or “B.”. You can see the complete list of today’s Zacks #1 Rank stocks here.
j2 Global, Inc. provides cloud-based communications and storage messaging services. The stock sports a Zacks Rank #1 and has a VGM Style Score of “B”. Moreover, j2 Global posted a positive earnings surprise of 9.70% in its last reported quarter and has an expected EPS growth rate of 15.4% and 7.3% for 2017 and 2018, respectively. Also, J2 Global currently trades at a forward P/E multiple of 15.4x, which is way lower than the Zacks categorized Internet Software industry average of 183.8x.
Synchronoss Technologies Inc. (SNCR - Free Report) is the premier provider of on-demand transaction management software to Tier One communications service providers. The stock carries a Zacks Rank #2 and has a VGM Style Score of “A”. Moreover, Synchronoss has an expected EPS growth rate of 36.9% and 33.2% for 2017 and 2018, respectively. Also, the stock currently trades at a forward P/E multiple of 13.2x, which is way lower than the Zacks categorized Internet Software industry average of 183.8x.
Synchronoss Technologies, Inc. Price, Consensus and EPS Surprise
Progress Software Corporation (PRGS - Free Report) is a global supplier of application development, deployment and management technology, Internet, and intranet-enabling technologies and support services to business, industry and government. The stock carries a Zacks Rank #2 and has a VGM Style Score of “B.”
Moreover, Progress Software posted a positive earnings surprise of 14.58% in its last reported quarter and has an expected EPS growth rate of 6.9% and 5.8% for fiscal 2017 and fiscal 2018, respectively. Also, Progress Software currently trades at a forward P/E multiple of 20.9x, which is lower than the Zacks categorized Computer-Software industry average of 24.1x.
Progress Software Corporation Price, Consensus and EPS Surprise
Planet Payment Inc. is a provider of international payment processing and multi-currency processing services. The stock carries a Zacks Rank #2 and has a VGM Style Score of “A.” Moreover, Planet Payment has an expected EPS growth rate of 40% and 23.8% for 2017 and 2018, respectively. Also, the stock currently trades at a forward P/E multiple of 17.5x, which is lower than the Zacks categorized Computer-Software industry average of 24.1x.
Planet Payment, Inc. Price, Consensus and EPS Surprise
Software companies will continue to transform our world with each passing year. So, if you don’t want to be left behind, make sure you’re investing in quality software stocks.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
4 Software Stocks that Deserve a Place in Your Portfolio
Over the years, dynamics of the software industry, the ways in which organizations conduct their businesses and people connect with each other have changed, thanks to technological progress and innovation.
As technology continues its rapid invasion into every corner of human existence, the need for improved software has increased manifold. The last few years witnessed breakthroughs in cloud computing and artificial intelligence (A.I.) technology, chip shrinking technology, self-driving cars, personal assistants, high-speed Internet and home automation, thus setting the stage for robust growth in the software industry.
With the U.S. economy rebounding, as evident from the improving economic data for GDP, the Consumer Confidence Index, unemployment rate and factory activity data, we believe that there are tremendous growth opportunities for software stocks in the year ahead.
Notably, as per Gartner Inc. (IT - Free Report) , worldwide spending on software reached $333 billion in 2016, registering year-over-year increase of 5.9%. The independent research firm predicts that spending will rise 6.8% in 2017 to reach $355 billion. This is much higher than the projected rate of 2.7% increase in spending for the entire tech industry.
Furthermore, software stocks with solid earnings continue to do well in comparison with other sectors. During the last earnings season, most of the software stocks reported positive earnings surprises.
So far this year, the software industry has had a remarkable run in the stock market, with iShares North American Tech-Software (IGV) registering a return of 16.3%. This 58-stock ETF provides exposure to the software segment of the broader U.S. technology space.
The ETF surpassed Technology Select Sector SPDR ETF’s (XLK - Free Report) , which comprises U.S. technology stocks, return of 10.5% as well as Dow Jones Industrial Average DJI, NASDAQ Composite IXIC and S&P 500’s GSPC gain of 5.9%, 9.6% and 6.4%, respectively.
As software promises a bright future in the year ahead, we believe adding some of these stocks to your portfolio will help boost returns.
4 Software Stocks with Solid Potential
With the help of our style score system, we have picked four software stocks that have performed well so far this year and have the potential to keep the momentum going in the next year. They also have a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy) and a VGM Style Score of “A” or “B.”. You can see the complete list of today’s Zacks #1 Rank stocks here.
j2 Global, Inc. provides cloud-based communications and storage messaging services. The stock sports a Zacks Rank #1 and has a VGM Style Score of “B”. Moreover, j2 Global posted a positive earnings surprise of 9.70% in its last reported quarter and has an expected EPS growth rate of 15.4% and 7.3% for 2017 and 2018, respectively. Also, J2 Global currently trades at a forward P/E multiple of 15.4x, which is way lower than the Zacks categorized Internet Software industry average of 183.8x.
j2 Global, Inc. Price, Consensus and EPS Surprise
j2 Global, Inc. Price, Consensus and EPS Surprise | j2 Global, Inc. Quote
Synchronoss Technologies Inc. (SNCR - Free Report) is the premier provider of on-demand transaction management software to Tier One communications service providers. The stock carries a Zacks Rank #2 and has a VGM Style Score of “A”. Moreover, Synchronoss has an expected EPS growth rate of 36.9% and 33.2% for 2017 and 2018, respectively. Also, the stock currently trades at a forward P/E multiple of 13.2x, which is way lower than the Zacks categorized Internet Software industry average of 183.8x.
Synchronoss Technologies, Inc. Price, Consensus and EPS Surprise
Synchronoss Technologies, Inc. Price, Consensus and EPS Surprise | Synchronoss Technologies, Inc. Quote
Progress Software Corporation (PRGS - Free Report) is a global supplier of application development, deployment and management technology, Internet, and intranet-enabling technologies and support services to business, industry and government. The stock carries a Zacks Rank #2 and has a VGM Style Score of “B.”
Moreover, Progress Software posted a positive earnings surprise of 14.58% in its last reported quarter and has an expected EPS growth rate of 6.9% and 5.8% for fiscal 2017 and fiscal 2018, respectively. Also, Progress Software currently trades at a forward P/E multiple of 20.9x, which is lower than the Zacks categorized Computer-Software industry average of 24.1x.
Progress Software Corporation Price, Consensus and EPS Surprise
Progress Software Corporation Price, Consensus and EPS Surprise | Progress Software Corporation Quote
Planet Payment Inc. is a provider of international payment processing and multi-currency processing services. The stock carries a Zacks Rank #2 and has a VGM Style Score of “A.” Moreover, Planet Payment has an expected EPS growth rate of 40% and 23.8% for 2017 and 2018, respectively. Also, the stock currently trades at a forward P/E multiple of 17.5x, which is lower than the Zacks categorized Computer-Software industry average of 24.1x.
Planet Payment, Inc. Price, Consensus and EPS Surprise
Planet Payment, Inc. Price, Consensus and EPS Surprise | Planet Payment, Inc. Quote
Conclusion
Software companies will continue to transform our world with each passing year. So, if you don’t want to be left behind, make sure you’re investing in quality software stocks.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>