11 Best Software Application Stocks to Buy Now

On March 17, Orlando Bravo, Founder and Managing Partner of private equity firm Thoma Bravo, spoke with CNBC about the impact of artificial intelligence on the software sector. The conversation comes at a critical moment where software stocks have taken a beating lately, with the S&P Software and Services Index losing roughly a quarter of its value since October. This has left investors wondering what comes next. But Bravo’s take is more nuanced than the headlines suggest. Not all software companies are in the same boat. Some are genuinely being disrupted by AI, and their declining valuations are justified. However, others are strong businesses that are actually well-positioned to thrive in the AI era, and those have been unfairly punished by the broader selloff.

For Thoma Bravo, which has made over 500 software acquisitions over the past 25 years, the focus remains on company fundamentals such as cash flow, earnings, and customer contracts, rather than the market noise. Highlighting these measures, the firm’s management mentioned that many of their portfolio companies are performing well.

The message for investors is simple: in a volatile market, quality software companies with solid fundamentals and a clear AI strategy are the ones worth paying attention to. With that background, let’s explore our 11 Best Software Application Stocks to Buy Now.

Our Methodology

To identify relevant stocks for this article, we screened U.S.-listed software application companies with market capitalizations above $2 billion. Also, we shortlisted only stocks with at least 50% upside potential according to TipRanks consensus as of the March 18 closing. In the final part of our search, we selected 11 stocks with the highest upside and ranked them in ascending order.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 498.7% since May 2014, beating its benchmark by 303 percentage points (see more details here).

11. monday.com Ltd. (NASDAQ:MNDY)

monday.com Ltd. (NASDAQ:MNDY) is one of the 11 best software application stocks to buy now.

On March 11, monday.com Ltd. unveiled new infrastructure that allows AI agents to register and function within the platform on behalf of people. The company revealed that they are now providing infrastructure that comprises both the infrastructure itself to enable AI agents from outside the platform to access the platform and work alongside its human users, as well as the onboarding of AI agents acting on behalf of humans.

The debut of monday.com’s dedicated path for AI agents to manage projects, update workflows, automate procedures, provide reports, and more was also announced. This is based on the Monday agent builder that is now in beta and the Monday sidekick that is currently in use.

Back on February 23, Jefferies downgraded monday.com Ltd. from a Buy rating to Hold. The firm also reduced its price target significantly from $260 to $80, which now yields a single-digit upside of more than 6%.

The firm attributed such downward adjustment to a “hazy outlook” across the company’s small business and enterprise segments. It also highlighted the ongoing AI-related risks that have led to continued pressure on the broader applications software space.

monday.com Ltd. is a software applications developer that operates a cloud-based visual Work Operating System. This platform contains modular building blocks that are used for creating software applications and scaling workflows for enterprises. It delivers customized work management tools for efficient management of processes and projects.

10. Unity Software Inc. (NYSE:U)

Unity Software Inc. (NYSE:U) is one of the 11 best software application stocks to buy now.

On March 3, Omar Dessouky of Bank of America Securities upgraded Unity Software Inc. from Underperform to Neutral. The analyst also increased his target price on the stock from $18 to $19.

Dessouky noted weaker-than-expected first-quarter guidance, which has reduced investor expectations for 2026 and also lowered the risk of further estimated cuts. He added that near-term catalysts appear balanced, with the focus now shifting towards the second-quarter guidance. Any form of potential strength could act as a signal towards possible acceleration in the company’s Grow segment.

Back on February 12, Needham reduced its price target for Unity Software Inc. from $50 to $35, leading to an adjusted upside potential of more than 74% despite the revision. The firm reaffirmed its Buy rating on the stock following the fourth-quarter results.

Vector showed double-digit sequential growth, with momentum expected to continue in FY26, making the firm optimistic about Unity’s execution. According to the firm, Vector would probably cover the present enterprise value using the sum-of-parts methodology, and this is the main justification for owning the shares.

Unity Software Inc. offers tools for developing interactive real-time 2D and 3D content for mobile phones, personal computers, consoles, and extended reality devices. The company helps developers across the overall development lifecycle through its AI-enabled platform. Other offerings include Create Solutions and Grow Solutions for user engagement and monetization of content.

9. Klaviyo Inc. (NYSE:KVYO)

Klaviyo Inc. (NYSE:KVYO) is one of the 11 best software application stocks to buy now.

On February 24, Klaviyo Inc. announced forming a strategic alliance with Alphabet Inc. (GOOG). This partnership aims to assist various organizations in creating autonomous AI experiences throughout the entire customer journey. This would involve discovery, purchase, service, loyalty, and more.

The purpose is to assist various marketers in moving beyond traditional static experiences and into the world of autonomous experiences. The alliance will leverage Google’s search, advertising, AI, and messaging expertise, as well as Klaviyo’s real-time consumer data processing and action capabilities.

On February 11, Needham analyst Scott Berg reduced the firm’s price target on Klaviyo Inc. from $45 to $30. The analyst maintained his Buy rating on the stock, which still yields an impressive upside potential of almost 57% at the prevailing level.

Berg noted that Klaviyo Inc. delivered strong fourth-quarter results, registering revenue outperformance. This was driven primarily by solid sales and customer expansion during the holiday season.

Klaviyo Inc. delivers an AI-first SaaS platform for B2C clients that helps in their customer relationship management functions. The platform enables data storage, campaigns, marketing automation, and analytics. It also allows for customer service integration and omni-channel marketing tools such as emails, SMS, and WhatsApp marketing.

8. Commvault Systems Inc. (NASDAQ:CVLT)

Commvault Systems Inc. (NASDAQ:CVLT) is one of the 11 best software application stocks to buy now.

On March 17, Rudy Kessinger from DA Davidson reduced the firm’s price target on Commvault Systems Inc. to $125 from $135. The analyst maintained his Buy rating on the shares, which offer a revised upside of more than 56% despite the revision.

As per the analyst, the search for a CFO is ongoing, with candidates having experience in public software companies. Discussions with the investor relations team at Commvault indicated that the addition of a well-recognized CFO could prove to be a major catalyst.

Kessinger also noted that the company is trying to regain investor confidence to restart its beat-and-raise strategy. He highlighted that the initial FY27 could be soft, and the annual recurring revenue projections for the fourth quarter do not seem conservative.

Earlier on February 25, Dan Bergstrom from RBC Capital reiterated his Sector Perform rating on Commvault Systems Inc.. He reflected on the company’s impressive growth in free cash flows, as well as management’s guidance of further 10% expansion by mid-2026.

Commvault Systems Inc. is a cybersecurity and data protection company that delivers data recovery and protection services. Through its Operational Recovery function, it offers data backup, recovery, and workload mobility solutions covering on-premises, hybrid, and multiple cloud environments.

7. Life360 Inc. (NASDAQ:LIF)

Life360 Inc. (NASDAQ:LIF) is one of the 11 best software application stocks to buy now.

On March 3, Citi analyst Siraj Ahmed reduced the firm’s price target on Life360 Inc. from $82.25 to $68.75. The analyst maintained his Buy rating on the shares, which still offer more than 65% upside at the current level.

Ahmed noted that the first-quarter guidance pointed to monthly active user growth below 20%, raising concerns about slowing user growth, though it views this metric as more controllable than the market expects. He still forecasts around 20% year-over-year MAU growth but said the target cut reflects lower peer multiples, increased competition, and a more cautious medium-term growth outlook.

On March 3, UBS also reduced the firm’s price target on Life360 Inc. from $110 to $75. The firm maintained its Buy rating on the stock, which currently yields more than 80% upside potential.

According to the firm, Life360 has released FY26 guidance that slightly beats street estimates on revenue and adjusted EBITDA. This was essentially driven by better-than-expected growth in ad revenue since the acquisition of Nativo.

The company expects the first half of 2026 to be investment and integration-heavy, with revenue acceleration and margin expansion anticipated during the second half. Execution on ad monetization, international MAU growth, and second-half operating leverage are critical to achieving the company’s long-term framework of scaling high-margin recurring revenue.

Life360 Inc. offers a technology platform that facilitates communication, digital security, location sharing, and emergency assistance. The company provides a mobile-first technology platform that emphasizes security and data protection for members. Some of the features include real-time coordination, smart notifications, and driving alerts.

6. SoundHound AI Inc. (NASDAQ:SOUN)

SoundHound AI Inc. (NASDAQ:SOUN) is one of the 11 best software application stocks to buy now.

On February 27, Piper Sandler analyst James Fish reduced the firm’s price target on SoundHound AI Inc. from $11 to $9. The analyst maintained a Neutral rating on the shares, which now yield an upside of more than 15%.

Fish described the quarter as mixed, with revenue figures staying in line with consensus forecasts, a profitability miss, and stronger-than-anticipated guidance. However, he flagged concerns about the business’s current run-rate trajectory and its heavy reliance on M&A and go-gets to narrow the existing gap.

On February 26, SoundHound AI Inc. announced its fourth quarter results. Revenue was recorded at $55.1 million, exhibiting a 59% year-over-year growth. Topline figures for the entire year doubled on a yearly basis, standing at $169 million.

During the quarter, the company closed more than 100 customer deals. These included engagements with an automotive OEM from Japan, a telecommunications company based in the U.S., and an athletic brand with global presence.

SoundHound AI Inc. offers voice AI services to businesses, enabling them to communicate effectively with customers. It covers various industries worldwide, including automotive, media, and technology. Its proprietary platform, Houndify, provides a range of tools that enable businesses to build voice assistants, customer support, and other capabilities.

5. Strategy Inc. (NASDAQ:MSTR)

Strategy Inc. (NASDAQ:MSTR) is one of the 11 best software application stocks to buy now.

On March 16, Strategy Inc. provided an update on its bitcoin holdings in a regulatory filing. The company reported that between March 9 and March 15, it purchased 22,337 units of the virtual currency at an average price of $70,194 per unit, or around $1.57 billion. As of March 15, the company owns 761,068 units of the virtual currency, purchased for about $57.61 billion.

On March 4, Clear Street reduced the firm’s price target on Strategy Inc. to $198 from $268. The firm maintained its Buy rating on the shares, which still offer a potential upside of almost 32% at the prevailing level.

Clear Street cited persistently lower Bitcoin prices and more conservative yield assumptions for the price target cut. Despite this, the firm remains constructive on the company, highlighting its strong positioning in the digital asset space. The firm also sees potential upside from regulatory developments and expects bitcoin stabilization to support a recovery in the shares.

Strategy Inc. is a bitcoin treasury company that offers exposure to Bitcoin through equity and fixed income securities. It also delivers AI-enabled enterprise software solutions such as Strategy One and Strategy Mosaic. These allow the company to provide data solutions, intelligence, analytics, and insights to its enterprise customers.

4. Braze Inc. (NASDAQ:BRZE)

Braze Inc. (NASDAQ:BRZE) is one of the 11 best software application stocks to buy now.

On March 12, J.P. Morgan reduced its price target for Braze Inc. from $45 to $32. The firm reiterated an Overweight rating on the stock, which currently yields an adjusted upside potential of more than 66%.

The downward revision in the target price is based on the potential risk of AI-led disruptions across the segment. The firm still fancies Braze Inc., given some favorable industry trends in terms of the replacement cycle. Moreover, given the stock’s current valuation range, the firm sees potential for further growth.

Back on February 9, Stifel also reduced the firm’s price target on Braze Inc. from $45 to $40, resulting in an adjusted upside of almost 108% despite the revision. The firm maintained its Buy rating on the shares.

Stifel noted that recent AI-related announcements have caused a negative sentiment towards Braze Inc.. But it believes that the company still remains a strong long-term play. The firm highlighted its overlooked competitive moat and considers it to be a potential AI winner over time.

Braze Inc. facilitates communication between brands and consumers across the globe through its customer engagement platform. Some of its services include data ingestion, online notifications, and interstitial messages. The company also helps brands sync and transform consumer data in a structured way.

3. Atlassian Corp. (NASDAQ:TEAM)

Atlassian Corp. (NASDAQ:TEAM) is one of the 11 best software application stocks to buy now.

As of the March 18 closing, consensus sentiment for Atlassian Corp. was strongly bullish. The stock received coverage from 22 analysts, 19 of whom assigned Buy ratings and 3 of whom gave Hold ratings. With no Sell rating, it has a projected median 1-year price target of $163.40, implying upside potential of more than 115% for investors.

On March 16, BNP Paribas initiated its coverage of Atlassian Corp.. The firm assigned an Outperform rating to the stock and estimated a target price of $95. This results in an upside potential of almost 27% at the prevailing level.

Earlier on March 5, Wells Fargo reflected on OpenAI’s preview release of its Symphony framework. The firm highlighted companies like Atlassian Corp. and Linear, which are well-positioned to benefit from the framework, given their control over workflow processes such as approvals and tracking. The firm stated:

“Rather than replacing these systems, Symphony illustrates how AI can be embedded within them as an extension of existing workflow control.”

Comments from Wells Fargo clearly indicate how AI can be embedded into existing platforms as an extension of workflow control, enabling more seamless integration of AI-driven decision-making within current enterprise tools.

Atlassian Corp. delivers collaboration, project management, and IT service tools that help enterprises in integrating their teams through a subscription-based model. Some of its offerings include Jira, Confluence, Trello, and Loom. The company covers a broad set of solutions such as project management, document sharing, video communication tools, service management, and Chat & Agent capabilities.

2. WeRide Inc. (NASDAQ:WRD)

WeRide Inc. (NASDAQ:WRD) is one of the 11 best software application stocks to buy now.

On March 17, during NVIDIA’s GTC 2026 event, WeRide Inc. exhibited its Robotaxi GXR, highlighting its continued push in the autonomous vehicle space and global expansion efforts. Commenting on the advancement, the company stated:

“WeRide Inc. showcased its Robotaxi GXR at NVIDIA (NVDA) GTC 2026 today, expanding the model’s global appearance. Building on the strategic partnership with Grab, Southeast Asia’s leading superapp and a WeRide shareholder, WeRide looks forward to introducing the vehicle across key Southeast Asian markets over time.”

On March 13, WeRide Inc. announced that during meetings held in Guangzhou, China, during the first week of February, all motions put forth in the notices of the extraordinary general meeting, Class A meeting, and Class B meeting were approved.

All corporate authorizations and activities were deemed to be accepted upon adoption of the resolutions. The memorandum and articles of association of the company were also amended and restated. Moreover, the directors were given unconditional and broad mandates to distribute, issue, and deal with more of the treasury and Class A ordinary shares. The WeRide Inc. 2026 Share Plan was also adopted, and the share repurchase by the company was authorized under specified conditions and specified periods of time.

WeRide Inc. delivers autonomous driving technologies and services across a range of industries. These include logistics, mobility, sanitation, and more. The company offers a ride-hailing app called WeRide Go, and also delivers driving-assistance solutions.

1. Navan Inc. (NASDAQ:NAVN)

Navan Inc. (NASDAQ:NAVN) is one of the 11 best software application stocks to buy now.

On March 17, BMO Capital initiated coverage on Navan Inc.. The firm assigned an Outperform rating to the stock and forecasted a target price of $13. This implies upside potential of more than 41% for investors.

BMO Capital noted that short-term AI impacts on the travel and expense market are smaller than feared and not fully priced into Navan shares. With relatively low adoption in global business travel bookings, the company has meaningful room to capture additional market share, positioning it for growth as the sector continues to expand.

On February 25, Navan Inc. announced that it had been selected by Darktrace to improve its international travel program. According to David Smith, Chief People Officer at Darktrace, such collaboration comes at a critical time when the company aims to expedite its expansion plans. He stated:

“As Darktrace accelerates its expansion, in-person collaboration is critical. Navan’s inventory and user experience will ensure our teams and customers can easily connect, while we can maintain financial control.”

Navan Inc. is a travel and expense management business that leverages an AI-enabled platform to streamline the travel experience for consumers. It delivers AI-led payments and expense management services across the entire travel lifecycle. This involves bookings, payment processing, reconciliations, reporting, and more.

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