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.
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research In Q1 FY2024 for OTEX, both revenue and EPS beat analysts’ estimates. Revenue came in at US$1.425B displayed year-over-year growth of 67% from $852M. Year-over-year growth in revenue was driven by Cloud revenues increasing 11% and annual recurring revenues increasing 59%. Adjusted EPS came in…
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.
The Canadian tech giant recently made headlines when its merchants hit $4.1 billion in Black Friday sales, soaring 22% over last year and defying expectations of the consumer and the stock itself.Once bigger than Royal Bank (in terms of market cap), Shopify shares plunged 75% from their all-time highs after the pandemic. Then, last spring…
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.
One of his favourite companies which has consistently delivered returns. Benefits big from the AI trend. However, shares tend to be volatile right after earnings. They report Wednesday. Last year, Adobe bought Figma, a design company. He disagrees with some, feeling that Figma was worth the price, because Figma's tools are so beloved by users.…
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.
AI outlook? Been a lot of premature hype earlier this year, but AI is no fad and demands a long-term strategy. You need to pick the right companies, preferring large, establish companies over speculative smaller ones. AI will be a growth story in coming years.
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.
It's been sideways since May and now their guidance is putrid at best. There are other places to go in tech. See what happens to this in January. True, it's a tech stock exposed engineering and infrastructure, unlike its peers. It lacks growth of those peers, though.
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.
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.
Reports Monday. A solid software company that trades at a reasonable PE and rarely misses earnings. But last time, they disappointed and shares plunged from $126 to $100. Some felt they overpaid for a second-tier electronic records company. Some feel they will leverage their huge data centre group into a gen-AI powerhouse. Wall Street has…
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.
A big holding for him. while other companies are talking about how they'll make money from gen AI, MSFT is already doing it. Their Copilot has a high level of usage by MSFT subscribers. Bears think that the latest AI rally is overdone, but if it pulls back next week, buy,
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.
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.
Workday, Inc., is an American on-demand financial management and human capital management software vendor. Workday was founded by David Duffield, founder and former CEO of ERP company PeopleSoft, and former PeopleSoft chief strategist Aneel Bhusri following Oracle's hostile takeover of PeopleSoft in 2005.
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 has more than tripled though remains down over 30% from its late-2020 peak. Generative AI is a huge boost for them which is why shares have caught fire. Last year they turned a profit and this year their profits should double. The valuation is huge, but the street predicts it will become the King…
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.
Reported two weeks ago: great numbers with a clean beat and raised their quarter. Shares popped and can continue to rise, but a recent major hack involved cracking a company network by breaking into an employee's Okta logging credentials.