You can’t deny that software continues to power our increasingly digital world today. As a result, investors would turn to software stocks when looking for long-term gains. After all, software companies will have to constantly upgrade their offerings to keep up with the latest tech. Because of this, there would surely be no shortage of exciting news from the sector to fuel investor interest moving forward. Aside from this, the economy appears to be on the uptrend as well. This is evident from improving employment figures.
Given these points, Blue Line Capital President, Bill Baruch, seems to be keen on the broader tech industry. Baruch said in a CNBC interview last week that “rebuilding” positions on tech’s “extreme weakness” would be a “really good strategy”. Even now, software companies such as JFrog (NASDAQ: FROG) and Roblox (NYSE: RBLX) continue making waves. On one hand, JFrog facilitates the seamless integration of DevOps, cutting-edge developer tools, on mainstream cloud computing platforms. This includes Amazon (NASDAQ: AMZN) Web Services and Microsoft (NASDAQ: MSFT). On the other hand, Roblox’s video game developing platform provides a more creative space for gamers all around. Even investment bank Morgan Stanley (NYSE: MS) hit RBLX stock with an overweight rating, citing “robust growth prospects”. All in all, software stocks could be picking up momentum this week. Would now be the time to invest in one of these four software players in the spotlight?Software Stocks To Buy [Or Sell] This Week
- Medallia Inc. (NYSE: MDLA)
- Trimble Inc. (NASDAQ: TRMB)
- McAfee Corporation (NASDAQ: MCFE)
- 2U Inc. (NASDAQ: TWOU)
Starting us off is customer relationship management (CRM) company, Medallia. For the uninitiated, Medallia is a pioneer in the customer, employee, citizen, and patient experience management industries. If anything, the company has its award-winning Software-as-a-Service (SaaS) platform, the Medallia Experience Cloud (MEC), to thank for that. With the MEC, Medallia captures “billions of experience signals” across company interactions with patrons.Source: TD Ameritrade TOS
In turn, the MEC employs artificial intelligence and machine learning tech to extract actionable insights from all that data. As you’d expect, MDLA stock would be a go-to for investors looking to bet on the growing big data analytics market. Given its current valuation, could it be worth buying on the dip?
For one thing, Medallia has not been sitting idly by lately. Just last week, the company provided an update on its existing partnership with Microsoft. Notably, Medallia for Microsoft Dynamics 365 is now available on the Microsoft AppSource cloud marketplace. This is a great development for Medallia as the Microsoft AppSource is home to tailored line-of-business solutions. No doubt, Medallia would synergize well with the other enterprise software offerings on the marketplace. As Medallia’s services help more organizations drive revenue growth by refining customer interactions, could MDLA stock flourish?Trimble Inc.
Next, we will be looking at industrial software company, Trimble. In brief, the company provides software, hardware, and related tech services to global industries. These include but are not limited to the agriculture, construction, geospatial, and natural resources markets. Given its prominent position in the industrial and software markets, it would not surprise me if investors are currently eyeing TRMB stock. Similarly, the company’s shares are currently looking at gains of over 150% over the past year.Source: TD Ameritrade TOS
Despite its current gains, Trimble does not seem to be slowing down any time soon. Indeed, the company has been hard at work bolstering its operations on the 5G and automotive fronts. Firstly, Trimble unveiled its first dual-frequency timing module, providing 5G networks with 5-nanosecond accuracy. Furthermore, the company is also currently working with autonomous vehicle (AV) research firm VSI Labs. Trimble is mainly supplying spatial orientation tech to VSI Labs in this partnership.
Moreover, the company also appears to be focusing on long-term growth in environmental sustainability tech as well. This is evident as Trimble is establishing a state-of-the-art Technology Lab at Florida International University’s Moss School of Construction, Infrastructure, and Sustainability. Not only does this give the company access to potential future talents, but it also further aligns Trimble with global green initiatives. With Trimble firing on all cylinders, would you consider TRMB stock a buy?
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Following that, we have cybersecurity giant, McAfee. For some context, McAfee is one of the biggest names in the global consumer security software market. In terms of scale, the company’s services currently protect over 600 million devices around the globe. Through these devices, McAfee addresses over 67.2 billion daily real-time threat queries. With its consumer-focused cybersecurity solutions, McAfee would be a crucial service to have throughout the pandemic. This would especially be the case as consumers spend significantly more time online. Nevertheless, as cyber threats continue to evolve, could MCFE stock be a top software stock to watch now?Source: TD Ameritrade TOS
While cyberattacks may be growing more rampant, McAfee continues to expand its offerings as well. Namely, the company made two major announcements on the operational front last week. To begin with, McAfee’s MVISION Cloud-Native Application Protection Platform (CNAPP) is now generally available. According to the company, CNAPP provides consistent data protection and threat prevention for cloud-native applications.
Additionally, McAfee is also working with Japanese tech giant Panasonic to create a Vehicle Security Operation Center (VSOC). Naturally, the VSOC serves to commercialize vehicle security monitoring services. With automobiles relying more on smart technology, cybersecurity would be a growing concern for automobile owners. Overall, McAfee continues to bolster its core services while breaking new ground. All things considered, will you be adding MCFE stock to your portfolio?2U Inc.
Last but not least is educational tech company 2U. For the most part, 2U works on a contract basis with institutes of higher learning such as colleges and universities. Through these contracts, 2U offers online degree programs. The company supplies its partners with a cloud-based SaaS platform that boasts coursework design and infrastructure support services. Accordingly, many have come to rely on 2U’s services over the past year. The current pandemic would make many aware of the benefits and conveniences of online learning. Meanwhile, investors appear to be aware of this as TWOU stock has doubled in value over the past year. But, with improving pandemic conditions, could TWOU stock be looking at headwinds later this year?Source: TD Ameritrade TOS
Well, according to research firm Technavio, the global online education market could grow to $247 billion by 2024. According to the firm, a key growth factor for the industry could be organizations bolstering their workforce to “mitigate future crises.” Subsequently, the firm named 2U, Ambo (NYSE: AMBO), and Coursera (NYSE: COUR) as major players in the industry moving forward.
At the same time, 2U has been surveying the corporate upskilling/reskilling market as well. Just last week, the company found that 51% of respondents were likely to “switch job functions or business areas completely” within the next year. With the shifting dynamics of today’s workplace, 2U would be a valuable asset for professionals and organizations alike. Could this mean that TWOU stock has more room to grow in the long term?