3 Best Enterprise Software Stocks to Watch This Month
As strong earnings continue to lift the broader stock market, investors might want to look to enterprise software stocks. For the most part, this would be due to the industry’s connection to, well, businesses and organizations. Companies like these continue to ramp up operations as the economy recovers and we get back to normal. We could take a look at yesterday’s earnings stars, for example. Whether it’s consumer staples giants like Procter & Gamble (NYSE: PG) or consumer discretionary goods like netflix (NASDAQ: NFLX), everyone relies on business software. Not to mention that as businesses continue to grow, the need for such long-term services would also increase.
On the contrary, the industry continues to grab headlines with massive deals across the board. Just last week, GitLab (NASDAQ: GTLB), a developer-focused software platform, has gone public. The company is currently worth over $15 billion. Elsewhere, enterprise software developer Informatica is looking to make a stock market comeback. It is currently targeting a valuation of up to $9 billion, according to a statement on Monday.
Apart from all that, some of the biggest names in the space are also staying on the job. To know, Zoom (NASDAQ: ZM) and HP (NYSE: HPQ) are now collaborating with Room, a New York-based manufacturer of pre-engineered office modules. Thanks to this partnership, the trio is working on Room for Zoom, a soundproof office module specially designed for videoconferencing. Overall, the bullish thesis on enterprise software stocks remains, arguably, intact. Could that make any of these enterprise software providers the top picks in the stock market today?
Top Enterprise Software Stocks to Buy [Or Sell] In October 2021
International Business Machines
From the start, we have the International Commercial Machinery Society or IBM for short. In short, it is a multinational technology company that operates in more than 170 countries around the world. With a comprehensive suite of enterprise software solutions, IBM meets the needs of countless organizations worldwide. As such, it would make sense for investors to keep an eye on IBM shares amid the current stock market momentum.
On the contrary, IBM continues to find ways to expand its extensive portfolio of software offerings now. As of yesterday, the company is now considering acquiring consulting unit Adobe Workfront to refine its hybrid cloud and artificial intelligence (AI) strategy. The consulting firm specializes primarily in work management software consulting, in perfect synergy with IBM’s current partnership with Adobe (NASDAQ: ADBE). Undoubtedly, it seems that IBM is not yet resting on its laurels on the operational front. In fact, Mark Foster, senior vice president of IBM Consulting, said, “IBM’s continued investment in consulting services with acquisitions like this cements IBM as the partner of choice that clients turn to. are spinning for their digital transformation.”
Plus, another reason to possibly follow IBM today would be its upcoming earnings call. After today’s closing bell, the tech giant is expected to release its fiscal third quarter financial statements. All things considered, would IBM stocks be high on your watch list now?
[Read More]The best Reddit stocks to buy right now? 5 For your late 2021 watchlist
Next, we’ll take a look at Selling power. Most would know that the company is an industry leader in customer relationship management (CRM) solutions. Alongside its leading CRM offerings, Salesforce also offers a suite of enterprise applications, complementing its flagship services. This includes, but is not limited to, marketing automation, analytics, and CRM application development. While consumer-related businesses continue to see an increase in overall traffic ahead of the holiday season, Salesforce nonetheless remains viable.
Because of all that, stock CRM might be another must-have for investors looking to jump on business software trends now. Clearly, the company’s shares are already up more than 30% since the start of the year. Despite its current pace, Salesforce doesn’t seem to be slowing down in the slightest. Just yesterday, the company announced the launch of Edge3 on its Salesforce AppExchange marketplace. For starters, AppExchange is Salesforces’ cloud-based marketplace that lets businesses build their digital fronts through a wide range of apps. To date, the platform has over 6,000 listings, 9 million customer installs, and over 110,000 peer reviews.
Now coming back to Edge3, it is a field inventory management solution. In practice, it serves to extend intelligence, visibility and security on critical inventory items in the field for users. According to ByBox, developer of Edge3, this enables customers to “transform field service into a strategic source of value and differentiation”. Simply put, it provides organizations with greater oversight of their field inventories. Ideally, this move could further expand Salesforces reach in the market. After considering all of this, are you going to invest in CRM stocks?
[Read More] The best stocks to buy now? 4 consumer actions to consider
At the top of our list is one of the world’s best-known, if not the best-known enterprise software vendors, Microsoft. Notably, most are familiar with the company’s vast arsenal of software solutions. These range from cloud computing and productivity software to cybersecurity and Internet of Things-based offerings. Given its strong presence in several booming tech industries, MSFT stock could be one of the top enterprise software stocks to consider.
Overall, this would be the case as the pandemic has and continues to drive demand for Microsoft’s enterprise software. From its pandemic-era low, MSFT stock is now sitting on gains of more than 120%. Along with these gains, Microsoft also appears to be kicking into high gear financially. In its last quarterly earnings call, the company saw green across the board. Its net income and earnings per share were up more than 46% year over year. With Microsoft’s next earnings report due next week, I could see investors eyeing MSFT stocks now.
Aside from its impressive financials, Microsoft isn’t resting on its laurels just yet. As of this week, he is currently working with Babylon, a care company focused on digital value. The duo are now exploring opportunities to improve the affordability, accessibility and quality of healthcare for individuals around the world. They aim to do this through a combination of AI, machine learning and cloud technology. As Microsoft seeks to expand the applications of its technology globally, will you add MSFT stocks to your portfolio?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.