Open Text, Microsoft and the Top 17 Enterprise Software Stocks
Software is at the heart of the information age and is a huge driver of enterprises. Software stocks, under the technology sector, is set to grow even more as automation, and digitization continue in the workplace. These companies produce software widely used by companies and so they grow in tandem with other sectors which utilize their technology. Here are the top 17 enterprise software stocks right now:
Open Text (OTEX-T)
A Canadian company that develops and sells enterprise information management software. They pay a 1.6% dividend. They have high free cash flow and their fundamentals are looking good. They’ve been mentioned by numerous analysts as either a top pick or a buy.
Because of the volatility, a tradable security, not an investment. You could buy it down here. Recently named a leader in the Gartner magic quadrant. Double-digit growth rate, very strong balance sheet. (Analysts’ price target is $59.00)
Shopify Inc. (SHOP-T)
A company that is considered a Canadian unicorn. They provide a computer software platform for online stores and retail point-of-sale systems. The charts look good, and their addressable market is huge. A world leader in the e-commerce space.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Slower e-commerce growth expected. Inflation and consumer spending headwinds. Continues to invest e-commerce infrastructure. Valuation near historical low. Unlock Premium - Try 5i Free
Adobe Systems (ADBE-Q)
They provide software that is ubiquitous in the digital media/creative space. It is at a high valuation right now but it is a quality business. It is heavily used in corporate America and their cloud business is growing.
The price was too high before, but the price has pulled back quite a bit after an acquisition. Adobe paid a high multiple for that, so she is assessing that.
SalesForce.com Inc. (CRM-N)
An American cloud computing company that just released earnings. They’ve been consistently beating expectations. They were one off the first to offer software as a service and they’ve done very well. Their main business is for large companies and banks to interact with their clients.
It reports Wednesday. It's part of the tech bear market and he doesn't expect the report to trigger a buy. So, why is he holding onto it? He takes a long-term view of this quality company.
FireEye Inc (FEYE-Q)
An enterprise cybersecurity company that seeks to protect against cyber threats. They are a leader in security as a service and demand is growing.
Poster child when it comes to security as a service. Offer software instead of hardware, and the first to get in, so they have a lead. Instead, he owns Palo Alto and Splunk on the cybersecurity side. But it's on their shopping list, once markets settle down.
Autodesk Inc (ADSK-Q)
A 3D design software corporation that is used by architecture, engineering, media and connected industries. They are growing and acquiring companies so it should definitely be on your watchlist for a good entry point.
In recent weeks and today, she had sold some names and is now buying them back. They're down 45-75% from their 12-month high. But she's looking forward and these names inevitably will be higher than today.
An American cloud computing company. Their software is used to manage workflow in companies that provide services such as IT servicing. They’re growing rapidly and was mentioned as a Top Pick by David Burrows.
Actually, cloud stocks have held up relatively well compared to tech. In less than two months, shares have gone from $406 to $490, but remains over $200 from its peak. Business is good and NOW is actually profitable.
One of the world’s largest provider of database software. They’ve started changing their service into a subscription services and cloud based business. Their biggest client are financial institutions and are considered to not be a high risk trade.
(A Top Pick May 24/22, Up 1.6%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with ORCL has triggered its stop at $70. To remain disciplined, we recommend covering the position at this time.
Red Hat Inc. (RHT-N)
An American open-source software products provider that is used in the enterprise community. IBM bought them recently. They help customers transition into the Cloud, and the demand for this type of service is expected to grow as companies transition into the cloud.
(A Top Pick Aug 29/18, Up 27%) Acquired by IBM. He started buying at $62 and was taken out at over $170. IBM needed power to get into the cloud space.
A giant in computing hardware and software. They pay a nice dividend that is expected to grow. They’re an absolute leader in software and the cloud who has been consistently growing. Their office program is moving to subscription base meaning good recurring revenue with high margins. A good stock to hold.
The question included big name tech stocks in general. They have had tailwinds of falling interest rates for 40 years and investors have been overloaded in them. Tech stocks have under-performed since the beginning of the year. Multiples are coming down. Be careful with stocks trading sideways so be careful with companies such as Shopify.…
Tableau Software, Inc. (DATA-N)
They produce interactive data visualization products focused on business intelligence. They are pioneers in data analytics and they are moving from licensing to subscriptions and are getting rewarded for it.
Splunk Inc (SPLK-Q)
A software platform provider that uses a web-style interface to utilize big data. They’ve raised their 2020 revenue outlook and have returned about 21% in the last 2 months.
Last week, they delivered a nice top and bottom-line beat and raised its full-year forecast. But they didn't raise their annual recurring revenue guidance, and cut it by $250 million and cloud revenue came in light for the quarter. So, shares tumbled 12% the next day. Remember that Splunk is transitioning to a software-as-a-service business…
Citrix Systems (CTXS-Q)
They are the leaders in providing a secure digital workspace in the cloud. They’ve also become the preferred and most-used solution for enterprise file synchronization and sharing (EFSS).
Among the biggest losers on the S&P in 2021 #7, down 27%. This software company could be put up for sale, pushed by activists. He has no idea what CTRX is worth. They used to be the king of business collaboration software. He once loved their product. Now, there are too many competitors.
Cognizant Technology Solutions Corp. (CTSH-Q)
A IT services provider that helps companies implement technology. They started helping banks, insurance and healthcare generate more revenue using technology. An activist shareholder was brought in, and the company is focusing on value creation.
She sees a lot of good, long term, secular drivers. As technology permeates every business and every industry, these are the guys that come in and explain how a company can use technology. Historically, this was just on the expense side and how to get more efficient, but now use technology to generate revenue. This…
An on‑demand financial management and human capital management software vendor.They have brought in financial software that has helped them and analysts consider it a strong takeout target.
They reported a few weeks ago. Enterprise spending is not slowing. Their HR management software is based in the cloud and will continues revenue growth in coming years.
MongoDB, Inc. (MDB-Q)
A networking software supplier. Their main clients are financial services, government, healthcare, retail and telecom companies. The financial results for the fourth quarter and full year are expected to be announced on March 13.
It reports Monday. Unfortunately, it reports on the heels of Omicron and we'll learn more about soon. It got hit hard like so much tech today as money manager dump risky stocks. Unfortunately, it reports on the heels of Omicron.
Okta, Inc. (OKTA-Q)
A cloud software company that helps companies manage their employee passwords. Major S&P companies have embraced this company and their stock price has seen a nice return. There is still space to grow so it’s worth a look.
(A Top Pick Oct 18/21, Down 75%) He sold in February/March after holding for 4 to 5 months. It had some company specific problems including a security breach even though it is cyber security company. Because of attrition in sales it is having difficulty keeping some of its sales people. Non-profitable tech got hit hard…