Do these software stocks now have your attention?
Many investors may argue that, given the stock market’s recent volatility, software equities are potentially a bargain at their current value. This is particularly true when considering their long-term prospects. After all, most people will agree that software will, if it hasn’t already, play a critical part in the growth of many sectors. Upstart (NASDAQ: UPST), for example, just released Upstart AI Lending for Salesforce on the Salesforce AppExchange. This integration can assist financial institutions in modernising lending while remaining competitive so that they can deliver better service to their customers. As a result, the financial industry could be transformed.
In addition, the epidemic brought attention to the relevance of software in our daily lives. Over the last two years, there has been a rise in cyberattacks, which has been well reported. The cybersecurity software from A10 Networks (NYSE: ATEN) found a significant increase in the scope and intensity of cybercrime. Its research team recently tracked over 15.4 million DDoS weapons. Over the last year, the use of obscure potential amplification weapons like Apple Remote Desktop has more than doubled. These are cyber threats that have the potential to disrupt critical services that people rely on on a daily basis. As a result, it wouldn’t surprise me if software stocks made a major comeback at some point. If you agree, here are some of the best software stocks in the market.
Stocks to Keep an Eye On In May 2022
- Uber Technologies Inc (NYSE: UBER) Black Knight Inc (NYSE: BKI) (NYSE: UBER)
- Inc. Confluent (NASDAQ: CFLT)
- Paycom Software Corporation (NYSE: PAYC)
The Dark Knight
Black Knight is a global provider of integrated software, data, and analytics solutions. Software and hosting solutions are available through the Software Solutions sector. MSP, Servicing Digital, Loss Mitigation, Empower, and HELOCs are all examples of this. In addition, the section offers LoanCatcher, a cloud-based loan origination technology aimed towards brokers. Investors have recently become interested in BKI stock. This comes after Intercontinental Exchange (NYSE: ICE), the parent firm of the New York Stock Exchange, announced plans to buy Black Knight for $13.1 billion.
As a result, BKI stock has increased by more than 8% in the last trading week. The launching of Quick Quote was also announced by Black Knight’s Optimal Blue. For mortgage brokers, this is a new capability for its cloud-based Loansifter product, pricing, and eligibility engine. Brokers can use this to provide consumers with accurate quote proposals for products and scenarios at the time of need. As a result, a smooth changeover procedure improves both the borrower experience and the broker’s productivity. Would you join the BKI stock bandwagon in light of these fantastic developments?
Uber Technologies is a leading consumer company that relies on software to run its operations. The mobility-as-a-service company operates in more than 900 cities around the world. Its Uber Eats and Postmates platforms provide services ranging from taxi hailing to meal delivery. In terms of market share, Uber has a 68 percent ride-sharing market share and a 26 percent food delivery market share. To say the least, UBER stock has been struggling over the last year. Some may argue that it is a good investment opportunity at its current price. Several recent events would seem to reinforce this viewpoint.
For instance, the business and Albertsons (NYSE: ACI) announced an expansion of their cooperation earlier this week. This expansion will affect almost 2,000 of the grocer’s marquee locations across the country. As a result, Uber Eats will have access to around 800 new sites across the United States. Furthermore, Uber’s recent first-quarter financials are plenty of reasons to be optimistic. Its sales more than doubled to $6.9 billion, indicating a 136 percent rise year over year. Additionally, Gross Bookings increased by 35% to $26.4 billion from the previous quarter. Uber appears to be heading in the right direction overall. That being said, is UBER stock a good investment right now?
The following company is Confluent, which focuses on data in motion. It entails the development of data infrastructure to link applications, systems, and data layers in a real-time central nervous system. The company enables businesses to provide connected customer experiences for their employees, applications, and data repositories. Additionally, software developers can connect and move data in their programmes for anything they do. Since the beginning of the year, the stock of CFLT has been under pressure.
In April, the corporation unveiled many new capabilities, which is remarkable. New role-based access controls, for example, will provide granular permissions at the data plane level. In addition, Confluent released the Expanded Confluent Cloud Metrics API, which provides enterprise-wide observability to improve data streaming speed. These additional capabilities will undoubtedly be welcomed by enterprises looking to move their data streaming operations to the cloud. So, do you think CFLT stock will have a better future?
Software by Paycom
To round off the list, consider Paycom Software, a cloud-based human capital management supplier. The company primarily offers software-as-a-service solutions. Its software gives businesses the capabilities and data analytics they need to manage the whole employment life cycle, from hiring to retirement. As a result, proper employee information analysis can assist companies in making difficult employment decisions. Despite widespread market volatility, PAYC stock has managed to make a slight gain of over 5% in the last five trading days.
This follows the company’s first-quarter results release earlier this week. Paycom started fiscal year 2022 with a strong sales momentum. The company’s revenue climbed by 30% year over year to $354 million. Meanwhile, it earned $91.9 million in GAAP net income, or $1.58 per diluted share. This represents a 42.3 percent increase over the previous quarter. As a result, it should come as no surprise if investors share the company’s current level of confidence. With that in mind, do you think PAYC stock is a promising software investment?