3 Enterprise Software Stocks to Buy Long-Term

Even though data security threats, especially on cloud-based platforms, continue to plague the enterprise software industry, the sector is still expected to grow rapidly in the coming months owing to the growing demand from almost every industry as part of their digital transformation efforts. .

Additionally, as hybrid working grows in popularity, the demand for enterprise software solutions is expected to continue to increase. According to Statista, revenues from this sector are expected to grow at a rate CAGR of 8.9% by 2026.

So, we think it might make sense to bet on Oracle Corporation enterprise software stocks (ORCL), SAP SE (SAP) and Autodesk, Inc. (ADSK) to take advantage of the long-term growth of the industry.

Click here to view our Software Industry Report for 2021

Oracle Corporation (ORCL)

Based in Redwood City, CA ORCL provides products and services that address enterprise information technology environments worldwide. Its Oracle cloud software as a service offers several cloud software applications.

On September 13, 2021, Oracle CEO Safra Catz said, “Oracle’s two new cloud businesses, IaaS and SaaS, now account for more than 25% of our total revenue with an execution rate $10 billion annually. Together, IaaS and SaaS are Oracle’s fastest-growing, highest-margin new businesses. As these two cloud businesses continue to grow, they will help grow our overall profit margins and increase earnings per share. »

ORCL’s total revenue increased 3.9% year-over-year to $9.73 billion for its first quarter of fiscal 2022, ended August 31, 2021. operating result was $3.43 billion, representing a 6.7% year-over-year increase. Its net profit rose 9.2% year-over-year to $2.46 billion. Additionally, its EPS was $0.86, up 19.4% year-over-year.

For its 2022 fiscal year, analysts expect ORCL’s revenue to be $42.25 billion, a 4.4% year-over-year increase. The company’s EPS is expected to rise 10% year-over-year to $5.16 in its fiscal 2023. It has exceeded consensus EPS estimates in each of the last four quarters. Over the past nine months, the stock has gained 53.5% to close yesterday’s trading session at $95.33.

ORCL POWR Rankings reflect this promising prospect. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. POWR ratings rate stocks on 118 separate factors, each with its own weighting.

Also, the stock has a B rating for value, sentiment, stability, and quality. Within the Software app industry, it is ranked #5 out of 163 stocks. Click on here to see additional POWR ratings for growth and momentum for ORCL.

Click here to view our 2021 Cloud Computing Industry Report

SAP SE (SAP)

Based in Walldorf, Germany, SAP operates worldwide as an enterprise application software company. The Company operates through four segments: Applications-Technology & Support; OK ; Qualtrics; And services.

On November 8, SAP unveiled its SAP Responsible Design and Production, a solution for designing products sustainably and moving towards a circular economy. Andrew Morlet, CEO of the Ellen MacArthur Foundation, said: “Digital solutions play an important role in the transition to a circular economy. They allow companies to integrate circular practices into their operations, from designing products to reduce waste from the outset to tracking the lifecycle of the materials they use.

SAP’s total revenue increased 4.7% year-over-year to €6.84 billion ($7.75 billion) in the third quarter ended September 30, 2021. Its gross profit amounted to 4.89 billion euros ($5.53 billion), representing growth of 5.2% on the year. year-on-year increase. Its total current assets amounted to €16.93 billion ($19.16 billion) for the period ended September 30, 2021, compared to €15.07 billion ($17.06 billion) for the period ended December 31, 2020.

For its fiscal year 2022, SAP revenue is expected to grow 4.5% year-over-year to $32.72 billion. Its EPS is expected to rise 7.8% year-over-year to $6.89 in its fiscal 2021. It has exceeded consensus EPS estimates in each of the past four quarters. Over the past nine months, the stock price has gained 12.4% to close yesterday’s trading session at $141.97.

SAP’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a Strong Buy in our proprietary rating system.

Additionally, it has an A rating for sentiment and a B rating for value, stability, and quality. It is ranked #9 in the Software app industry. Click on here to see additional POWR notes for SAP (Growth and Dynamics).

Autodesk, Inc. (ADSK)

ADSK provides 3D design, engineering and entertainment software and services worldwide. Its technology spans architecture, engineering, construction, product design, manufacturing, media and entertainment – ​​enabling innovators to solve challenges. ADSK is headquartered in San Rafael, California.

On October 5, ADSK announced powerful new features on its Autodesk Construction Cloud, providing new ways for construction teams to connect workflows on a single platform. Sameer Merchant, Vice President of Product Development, Autodesk Construction Solutions, said, “Since we launched Autodesk Construction Cloud, we have focused on connecting office and field teams and facilitating collaboration across from a single source of truth.

For the second quarter of fiscal 2022, ended July 31, 2021, ADSK’s total net revenue increased 16.1% year-on-year to $1.06 billion. The company’s gross profit was $954.3 million, up 14.7% year-over-year. Its net profit was $115.6 million, up 17.7% year-on-year. And its EPS was $0.52, up 18.2% year-over-year.

ADSK’s revenue is expected to be $5.20 billion in its 2023 fiscal year, representing a 19% year-over-year increase. The company’s EPS is expected to rise 41% year-over-year to $7.02 next year. It has exceeded street EPS estimates in each of the past four quarters. Over the past year, the stock has gained 30.8% to close yesterday’s trading session at $330.55.

It’s no surprise that ADSK has an overall rating of B, which equates to a buy in our proprietary rating system. Additionally, it has an A rating for quality and a B rating for sentiment.

ADSK is ranked #26 in the Software app industry. Click on here to see additional POWR ratings for ADSK’s ratings for Growth, Value, Momentum and Stability.

Click here to view our Software Industry Report for 2021


ORCL shares were trading at $94.09 per share Thursday morning, down $1.24 (-1.30%). Year-to-date, ORCL has gained 47.69%, compared to a 26.31% rise in the benchmark S&P 500 over the same period.

About the Author: Riddhima Chakraborty

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master’s degree in economics, she helps investors make informed investment decisions with her insightful commentary. Continued…

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