As the pandemic has accelerated digital transformation, businesses are increasingly adopting software services. Moreover, the remote working culture has increased dependence on software significantly. Since the software market is expected to keep growing, Wall Street analysts expect prominent players in this space, StoneCo (STNE), Zedge (ZDGE), and Verb Technology (VERB), to witness significant upside in the coming months.Almost all industries worldwide, from manufacturing to transportation and healthcare, are now dependent on data insights, data storage, and various other cloud-based services offered by software companies. Even advanced sleek hardware gadgets depend on software functions as well. Consequently, businesses are willing to spend billions of dollars on upgrading and improving their software. According to a Gartner (NYSE:IT) report, worldwide public cloud end-user spending is expected to grow 23% in 2021.
The global software market is expected to reach $823.71 billion by 2026, registering a CAGR of 7.2%. Investors’ confidence in the software industry is evident from the iShares Expanded Tech-Software Sector ETF’s (IGV) 14.7% return over the past six months.
Hence, Wall Street analysts are optimistic about the upside potential of several quality software stocks. They expect StoneCo Ltd. (STNE), Zedge, Inc. (ZDGE), and Verb Technology Company, Inc. (NASDAQ:VERB) to gain more than 75% in the coming months.