The remote working culture is expected to continue partly due to the rapid spread of the COVID-19 Delta variant, which is necessitating the re-introduction of pandemic restrictions in some countries and locales. This, coupled with the ongoing digital transformation in several industries, should drive the demand for software solutions. Therefore, we think prominent software stocks Adobe (NASDAQ:ADBE), Constellation Software (CNSWF), NICE Ltd. (NICE), and PTC Inc. (NASDAQ:PTC), which are rated A (Buy) in our proprietary rating system, could continue climbing in price. So, let’s take a closer look at these names. Read on.The software industry has been one of the biggest beneficiaries of the COVID-19 pandemic, given the surge in demand for digital solutions by virtually every industry. The artificial intelligence (AI) market is also booming, given its broad applications in core industries. According to the International Data Corp. (IDC), AI spending is on track to increase 15.2% year-over-year in 2021. IDC analysts also expect growth to remain robust in the subsequent years.
Because COVID-19 cases are rising again, several countries are reintroducing social distancing and travel restrictions. Given this backdrop, remote working should continue for the next few months at least. Also, the ongoing digital transformation in almost every sector is expected to accelerate the software industry’s growth.
Therefore, we believe that fundamentally sound stocks Adobe Inc. (ADBE), Constellation Software Inc. (CNSWF), NICE Ltd. ADR (NICE), and PTC Inc. (PTC), which have overall A (Buy) ratings in our proprietary POWR Ratings system, could continue advancing.