The demand for software solutions from several industries has been increasing at a rapid rate thanks to businesses’ ongoing digital transformation and new-age services. As such, we think it could be wise to bet on software companies International Business Machines (NYSE:IBM), Gartner (NYSE:IT), PTC (NASDAQ:PTC), and Tenable (TENB). They each possess solid growth attributes and favorable analyst sentiment. Read on.The accelerating pace of digitalization and increasing dependency on software solutions across several industries have been driving investor interest in the software industry. This is evident in the iShares Expanded Tech-Software Sector ETF’s (IGV) 9.4% returns over the past month versus the SPDR S&P 500 Trust ETF’s (SPY) 3.3% gains.
The increasing automation of business processes and growing application of software solutions in the areas of remote working and cybersecurity, among others, are expected to help the industry keep growing in the coming months. According to Grand View Research, the global business software and services market is expected to grow at a 11.3% CAGR over the next seven years.
So, we think it could be wise to bet on quality software stocks, specifically International Business Machines Corporation ( IBM ), Gartner, Inc. (IT), PTC Inc. (PTC), and Tenable Holdings, Inc. (NASDAQ:TENB). In addition to their fundamental strength, consistent product and services innovations should help these companies continue attracting investors.