5 Software Stocks That Analysts Love

Software is long into its migration from CDs and disks into the cloud. But this maturing industry continues to grow ... and these software stocks should benefit.

Concept art of cloud stocks
(Image credit: Getty Images)

The software industry is driving the digital transformation of our society and economy. At this point, software runs on almost every device we use. So it's no surprise that software stocks enjoyed huge gains in 2020, as the coronavirus pandemic forced us to stay at home, accelerating the move to digital.

2021 hasn't been as kind. The Dow Jones U.S. Software Total Stock Index is up just 3.1% year-to-date versus a 10.5% gain for the broader market, and many software stocks are in the red so far this year. However, IT spending is on the rise, giving us the perfect opportunity to scoop up shares on pullbacks.


Data is as of May 11. POWR Ratings work on an A-B-C-D-F system.

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David Cohne
Contributing Writer, Kiplinger.com

David Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent 11 years as a consultant providing outsourced investment research and content to financial services companies, hedge funds and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.