As the shift to digitization intensifies, the importance of enterprise software is increasing manifold for firms as it can lead to improved efficiency and increased productivity. With the help of various enterprise software, firms can efficiently carry out several operations. From the initial stages of a product’s lifecycle to taking care of logistics for ensuring that it is delivered to the end-user, enterprise software solutions like supply chain management, allow firms to effectively manage the entire flow.
Besides, ever-increasing competition has compelled firms to find out ways to both retain customers and acquire new ones to drive profitability. This is where the customer relationship management (“CRM”) software is enabling firms to better engage with their customers and enhance their experience. CRMs also allow firms to effectively carry out marketing campaigns. With the help of data garnered from customers, firms can devise targeted campaigns to drive sales.
Several analytics tools are also at the disposal of firms via enterprise software, which allows them to study and gain useful insights into their business operations, thereby enabling firms to make effective business decisions. Firms can also manage their financials with the help of enterprise software, enabling them to collect financial statements across different departments and carry out their accounting obligations.
Firms are also opting for cloud platforms as they effectively reduce the cost of installing expensive software at their end. Companies can simply opt for a subscription-based model per their requirements and access such software anywhere with the help of an Internet connection.
Owing to the many positives that various enterprise software are bringing forward, it is only expected that firms will be willing to spend more on such software. Per the latest estimate from Gartner released on Jul 14, enterprise software spending is set to accelerate further this year and
rise 13.2%, following a rise of 9.1% in 2020.
The report further stated that in 2022, enterprise software spending is set to rise 11.7%. Increased spending on enterprise software means that the enterprise software market will expand as well. Per a separate
report by Market Data Forecast, the enterprise software market is set to witness a CAGR of 6.15% from 2021 to 2026. 4 Stocks to Buy Now
Enterprise software is set to witness further growth as firms look to accelerate their spending, owing to the myriad advantages they gain. This looks like a prudent time to invest in stocks that can make the most of this continued uptick. We have selected four such stocks that carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here. Paycom Software, Inc. ( PAYC Quick Quote PAYC - Free Report) provides a cloud-based human capital management solution delivered as software-as-a-service for small to mid-sized companies in the United States. On Jul 7, the company unveiled its new technology called Better Employment Transaction Interface which will allow employees to manage their own payrolls.
Shares of Paycom Software have risen 8.1% year to date and the company currently flaunts a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 3.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 25.2%.
MicroStrategy Incorporated ( MSTR Quick Quote MSTR - Free Report) provides enterprise analytics software and services worldwide and serves companies from a range of industries, including retail, consulting, technology, manufacturing, finance, and so on.
Shares of this Zacks Rank #1 company have gained 80.9% year to date. The Zacks Consensus Estimate for its current-year earnings increased 8.9% over the past 30 days. The company’s expected earnings growth rate for the current year is 13.2%.
Duck Creek Technologies, Inc. ( DCT Quick Quote DCT - Free Report) is a provider of software-as-a-service delivered enterprise software to the property and casualty insurance industry. The company is continuing to expand its international footprint and on Aug 11, it announced the setting up of a regional product development team in Australia to cater to the needs of its current and future customers in the area, along with releasing numerous regional-specific software packages and implementation accelerators.
Shares of this Zacks Rank #2 company have risen 8.2% year to date. The Zacks Consensus Estimate for its current-year earnings increased more than 100% over the past 60 days. The company’s expected earnings growth rate for the current year is 33.3%.
Microsoft Corporation ( MSFT Quick Quote MSFT - Free Report) develops, licenses, and supports software, services, devices, and solutions worldwide. The company offers CRM via Dynamics 365. In fiscal fourth-quarter 2021, the company’s Productivity & Business Processes segment revenues grew 25% year over year. The segment, which includes the Office and Dynamics CRM businesses, contributed 31.8% to total revenues.
Shares of Microsoft have gained 36.5% year to date and it currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 3.6% over the past 60 days. The company’s expected earnings growth rate for the current year is 8%.