Jan 22, 2021 (StockMarket.com via COMTEX) -- Looking For The Best Software Stocks To Buy Ahead Of February?
Software stocks have been and are still flourishing in the stock market today . The reason for this lies in two words. Digital acceleration. It is no surprise that the coronavirus pandemic has virtually forced organizations and businesses towards digital acceleration. As a result, this has fueled top-line growth for the top software stocks to watch now. Because of this sudden movement, corporate spending in the software industry has gone through the roof. Key areas that have blown up are cloud services, cybersecurity, big data analytics, and digital transformation services in general. With so much movement in the sector, investors likely have their eyes peeled looking for the best software stocks for their portfolios.
I don't blame them for doing so. For example, The Trade Desk ( NASDAQ: TTD ) and Magnite ( NASDAQ: MGNI ) have seen their shares gain by over 400% since mid-March. Understandably, the two companies provide online advertising services. But, in the bigger picture, they provide a vital service to companies in these times. Given the plethora of software companies that fulfill the same role, the industry is a booming one. Reading till this point, you may be eager to jump on the software train yourself. Well if you are, here is a list of the top software stocks to buy [or avoid] ahead of next week's trading session.
4 Software Stocks To Watch Right Now
BigCommerce Holdings Inc. ( NASDAQ: BIGC )
Fastly Inc. ( NYSE: FSLY )
Datadog Inc. ( NASDAQ: DDOG )
Workday Inc. ( NASDAQ: WDAY )
BigCommerce Holdings Inc.
Right off the bat, we will be looking at BigCommerce. It operates a leading SaaS (Software as a Service) e-commerce platform that empowers merchants of varying sizes to grow their businesses online. It caters to a wide array of customers across numerous industries and 150 countries. Notably, BIGC stock popped by over 13% during intraday trading yesterday on its recent announcement.
BigCommerce announced that it would be reporting its financial results for its fourth quarter next month on February 18. Based on its recent-quarter fiscal, investors could be anticipating another quarter of growth from the company. In detail, the company saw a 40% year-over-year rise in total revenue. This added up to $39.7 million. BigCommerce reported that it was one of the company's best quarters to date. On top of all that, investors could be awaiting robust gains from the holiday season.
Despite all this, BigCommerce is not resting on its laurels just yet. Earlier today, the company announced JBS Custom Software Solutions as a new partner. Through this, BigCommerce is bolstering its portfolio with JBS's cloud-based app development expertise. As it continues to improve its array of services, do you think BIGC stock is in for big gains this year?
Another top software stock in focus now would be cloud computing service provider Fastly. Through its proprietary edge cloud platform, Fastly powers fast, secure, and scalable digital experiences for its clients. Seeing as the general population is consuming digital content more than ever, the company appears well-positioned for growth. Likewise, FSLY stock has skyrocketed by over 320% in the past year. Naturally, this caught the eye of investors and analysts.
Investment bank Oppenheimer ( NYSE: OPY ) analyst Timothy Horan gave the stock a shining review. Horan gave FSLY stock an Outperform rating and set a new target price of $125 a share. This would explain why it gained by over 6% just passing the $104 mark at yesterday's closing bell. On top of that, Horan also mentioned that Fastly could surpass Wall Street consensus estimates for its recent quarter revenue by over $1 million. Time will tell if this will be the case. If it is, FSLY stockholders would likely rejoice.