The software industry is expected to grow in the upcoming months, thanks to the continued digital transformation and remote work. So, it could be wise to bet on quality software stocks such as Manhattan Associates (NASDAQ:MANH), Trend Micro (OTC:TMICY), American Software (NASDAQ:AMSWA), and ChannelAdvisor (NYSE:ECOM). These under-the-radar stocks are well-positioned to capitalize on industry tailwinds.Though the number of COVID-19 cases is gradually declining, the spread of the Delta coronavirus variant remains a concern. So, software solutions are expected to be in demand. As several companies have extended their work-from-home duration, the need for cloud-based software services will not likely reduce anytime soon.
On the downside, growing cyber security threats and cyber-attacks continue to threaten the software industry. However, consistent innovation and improvements should drive the industry’s growth amid the rapid digitalization across sectors. According to Statista, the software market revenue is expected to grow at a CAGR of 7.22% to $823.71 billion by 2026.
Given this backdrop, it could be wise to bet on software stocks such Manhattan Associates, Inc. (MANH), Trend Micro Incorporated (TMICY), American Software, Inc. (AMSWA), and ChannelAdvisor Corporation (ECOM). They may not be making headlines every day but are well-positioned to capitalize on the industry tailwinds.