Rising demand for cloud-based software solutions across several industries that are seeking to provide efficient services to their customers and to facilitate the continuation of remote working should keep driving the software industry’s growth. Therefore, we think fundamentally sound software stocks Commvault (CVLT), Enghouse Systems (EGHSF), American Software (NASDAQ:AMSWA), and eGain (NASDAQ:EGAN) could be solid bets now. So, let’s take a closer look at these names.The demand for efficient data analysis, customer services, and workflow management should keep driving the demand for cloud-based software services worldwide. Huge corporate spending on digitizing operations should also boost the industry’s growth.
The continuing increase in COVID-19 cases is forcing companies to delay their office reopening plans, so the demand for advanced software products and solutions continues to rise. Also, growing interest in advanced driver assistance systems (ADAS), machine learning, and artificial intelligence position the industry well for growth. The global software market is expected to grow at a 7.4% CAGR to $825.02 billion by 2026.
Therefore, fundamentally sound software stocks Commvault Systems, Inc. (CVLT), Enghouse Systems Limited (EGHSF), American Software, Inc. (AMSWA), and eGain Corporation (EGAN) could be solid bets now. Also, our proprietary POWR Ratings system has rated these stocks ‘Strong Buy.’