3 Top Software Stocks To Watch Right Now

3 Hot Software Stocks To Check Out In The Stock Market Today

Software stocks, similar to many other tech segments, have struggled to find their footing in the stock market this year. For most parts, there aren’t many changes in the fundamentals of the industry. Some may argue that the dependence on software in today’s world is more than ever before. A world without software may well be considered a world without technology. In fact, many of the technological advancements that we see today are focused on the software rather than the hardware.

With the competition in the industry, many top names in the space do not rest on their laurels. In April, Microsoft (NASDAQ: MSFT) surveyed more than 150 small and medium businesses (SMBs) in the U.S. The company found that more than 70% of SMBs have the opinion that cyberthreats are becoming more of a business risk. In light of this, Microsoft announced the general availability of the stand-alone version of Microsoft Defender for Business. It brings enterprise-grade endpoint security to small and medium business security. This includes endpoint detection and response capabilities and other sophisticated cyber threats. 

Aside from that, we also see the increasing adoption of software in many areas of our lives. For instance, Diebold Nixdorf (NYSE: DBD) and Nokia (NYSE: NOK) have selected Oracle (NYSE: ORCL) Fusion Cloud Human Capital Management (HCM) to replace their network of local Human Resources systems in the cloud. Naturally, this will help these companies with their global digitalization goals. With all said and done, software will likely continue to play a huge role in technological advancement and our lives. So, here are three of the top software stocks to note in the stock market today. 

Software Stocks To Watch Right Now

Amdocs

Amdocs is a software provider for the communications, Pay TV, entertainment, and media industry. Put simply, the company leverages technologies and methodologies such as 5G cloud, microservices, open-source, artificial intelligence (AI), and many more to provide its products and services. This includes services such as end-to-end systems integration, digital business operations, cloud services, consulting services, and quality engineering services. DOX stock has been drawing plenty of attention among investors lately. 

Well, this could be due to its recent second-quarter earnings report that was released yesterday. Amdocs reported record revenue of $1.14 billion, up 9.2% year-over-year and surpassing Wall Street estimates. Also, its GAAP diluted earnings per share were $1.28, well surpassing the guidance range of $0.96-$1.04. The company also ended the quarter with a record-high 12-month backlog of $3.89 billion, up nearly 10% from a year ago. All these reflect the company’s strong business activity in building next-generation platforms for large customers such as AT&T, and T-Mobile. 

Along with impressive financials, Amdocs also announced that it will extend its business relationship with Bell Canada for an additional five years. This is part of a broader strategic partnership to enrich the Bell BSS platform with a real-time, agile, and cloud-ready ecosystem by leveraging Amdocs’ latest technology. All in all, these are positive developments that reinforce the company’s commitment to excellence. With that said, could DOX stock be a top software stock to watch now?

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Fortinet

Another software company that has entered the scene in recent years is Fortinet. Due to increasing reliance on cybersecurity, the company is likely to be on the radar of many investors. For those unaware, the company’s cybersecurity solutions cater to a variety of organizations that include enterprises, communication service providers, government organizations, and small businesses. Also, its Cloud Security portfolio includes securing applications such as email and Web. It is available for deployment in public and private cloud environments, including Amazon Web Services, Microsoft Azure, Google Cloud, and many more.

Last week, the company reported better-than-expected first-quarter earnings. Its revenue for the quarter improved to $954.8 million, up 34% year-over-year. The growth is largely driven by record quarterly product revenue growth of 54% year-over-year. Meanwhile, its GAAP net income was $138.4 million, as compared to $107.2 million in the prior year’s quarter. Across the board, these results show the strong demand for its cybersecurity and networking solutions. 

Not to mention, the global cybersecurity provider recently announced significant progress in its Training Institute programs. This is the company’s program to train a million people in cybersecurity as part of its commitment to address the talent shortage within the industry. The company pledged to the program last year with a target of training 1 million people by 2026. Thus far, it is tracking ahead of its goal for the year toward this commitment. Given these encouraging developments, would you consider adding FTNT stock to your watchlist?

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Synopsys

Lastly, let us have a look at Synopsys. This is a company that provides products and services across the silicon to software spectrum. Synopsys believes that the company is at the heart of innovations that are changing the way people work and play. Whether it is self-driving cars or machines that learn, the company could have a pivotal role to play in this Smart Everything era. After all, this new era of innovation is powered by high-performance silicon chips and software content. As such, investors are often on the lookout for new developments from Synopsys. 

In April, the company announced its new neural processing unit (NPU) IP and toolchain. The Synopsys DesignWare ARC NPX6 and NPX6FS NPU IP aim to address the increasing performance requirement for AI systems on chips. To complement the ARC NPX6 NPU IP, it also introduced the new DesignWare ARC MetaWare MX Development Toolkit to provide a comprehensive compilation environment with automatic neural network algorithms to maximize resource utilization. As a result, it can deliver the industry’s highest performance and support for the latest and most complex neural network models. 

Furthermore, Synopsys also signed a definitive agreement to acquire WhiteHat Security last month. The addition of WhiteHat Security will provide the company with significant Software-as-a-Service capabilities. Besides that, it will also strengthen its market-segment-leading dynamic application security testing technology. All in all, this is a valuable addition that will help the company to build trust in the software that businesses depend on today. Considering these factors, do you think SNPS stock is a worthwhile investment?

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