The software industry is expected to grow substantially in the coming months as remote working continues amid rising concerns regarding COVID-19 cases around the globe. Furthermore, because software is a significant component of the global digital transformation, we believe the shares of small-cap software companies Progress Software Corporation (NASDAQ:PRGS), QAD Inc. (NASDAQ:QADA), and Magic Software Enterprises Ltd. (NASDAQ:MGIC), which possess impressive growth potential, could be ideal bets now. Let’s discuss.The software industry has been at the forefront of technological innovation over the last 19 months in facilitating remote working and the digital transformation of almost every industry globally. While solid progress on the vaccination front paves the way for employees to return to offices, the remote or hybrid working trend will likely continue for the foreseeable future. Slack Technologies (NYSE:WORK) CEO Stewart Butterfield noted that “Nobody would choose office over software.”
With the highly contagious COVID-19 Delta variant affecting even vaccinated people, many industry leaders have pushed back their office reopening dates. So, the software industry should continue thriving, at least in the near term.
Also, we think that with favorable investor sentiment surrounding tech stocks, shares of small-cap software companies Progress Software Corporation (PRGS), QAD Inc. (QADA), and Magic Software Enterprises Ltd. (MGIC) should witness solid upside in the near term.