Reality has started to set in for the tech sector: growth in the overall online audience has slowed, and the leading players and markets have become entrenched. These trends have left more than a few shareholders and device manufacturers wondering where their sales went. But some markets and companies will mature gracefully—and profitably.
A little over a year ago, we highlighted our top software stocks in two articles. Our outlook for US stocks calls for increasing volatility as this aging bull market continues to wind down; against this backdrop, we review our favorite software stocks to identify the best buys in the event of a market pullback.
We take a slight profit in one of our underperforming software picks and roll the proceeds into a name that boasts a highly visible revenue stream, tends to hold its value during periods of volatility and offers exposure to several near- and intermediate-term upside drivers.
Our software picks from last summer have delivered solid gains, easily outperforming the S&P 500 and topping the Russell 2000 Computer Service & Software Index. Here’s our assessment of these companies’ quarterly results and their future growth prospects.
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