In this article, we will look at the 13 Best Software Stocks to Buy Now.
Software stocks have faced their fair share of challenges, including investor frustration mounting over the slow contribution from artificial intelligence. Wells Fargo noted weak IT spending growth in the first half of the year, just up 2% year over year. Nevertheless, the sector has held steady, gaining 11.45% for the year, outperforming the S&P 500, which was up by about 1.6% over the same period.
According to Precedence Research, the outperformance comes as the global software as a service market grows at a compound annual growth rate of 13.32% and is expected to be worth $1.3 trillion by 2034. Wells Fargo expects growth in the software sector amid continued resilience in cloud infrastructure, cybersecurity, and generative AI initiatives. Morgan Stanley expects AI to be a key driver of software sector growth, predicting GenAI revenue could surpass $1 trillion by 2028. The firm highlights AI’s role in tech IPO market revival and automation advancements, emphasizing its transformative impact across industries.
Likewise, analysts at Wells Fargo expect the rebound in the software sector to gather momentum in the second half of the year as macroeconomic concerns and enterprise technology budgets normalize. Even as volatility persists, experts remain optimistic about long-term software sector expansion.
With that in mind let’s take a look at the 13 best software stocks to buy now.
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Our Methodology
To make the list of the 13 best software stocks to buy now, we scanned the US equity markets and settled on the top and most popular software stocks among hedge funds. We analyzed the stocks to determine why they stand out as top picks in the sector and detailed their one-year return. Finally, we ranked the stocks in ascending order based on their popularity among elite hedge funds.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Best Software Stocks to Buy Now
13. Agilysys, Inc. (NASDAQ:AGYS)
1-Year Return as of June 16: 16.63%
Number of Hedge Fund Holders as of Q1 2025: 21
Agilysys, Inc. (NASDAQ: AGYS) is one of the 13 best software stocks to buy now. On June 16, the leading hospitality software and services provider launched Agilysys Book with S.P.E.N.D. It is a technology breakthrough tailored to increase ancillary revenues and hotel guest personalization.
Agilysys Book with S.P.E.N.D is designed to empower hospitality locations to monetize experiences by offering compelling package bookings. While using the solution, guests can reserve all entitlements in a package, from spa and golf to dining and activities and tours. The solution also allows guests to accept real-time upsell offers during bookings.
It also comes with a guest satisfaction feature that allows curated selection views and prompts that ensure guests reserve all due entitlements. It also provides scalability across all property types, from luxury resorts to urban hotels.
Agilysys, Inc. (NASDAQ: AGYS) is a software application company that delivers state-of-the-art hospitality software solutions and services that help organizations go beyond what they can accomplish with traditional property management systems (PMS), point-of-sale (POS) solutions, and food and beverage inventory and procurement systems.
12. BlackLine, Inc. (NASDAQ:BL)
1-Year Return as of June 16: 21.47%
Number of Hedge Fund Holders as of Q1 2025: 27
BlackLine, Inc. (NASDAQ:BL) is one of the 13 best software stocks to buy now. On June 16, the company confirmed the appointment of Sam Balaji to its board of directors. Balaji joins the board with over three decades of global leadership experience, having served as Deloitte Consulting CEO for 28 years.
Balaji will bring exceptional experience to BlackLine, having overseen over 100 mergers, acquisitions, and investments. The company’s CO-CEO, Therese Tucker, has already touted his strategic thinking abilities and ability to unlock growth. His appointment comes as the company expands its platform capabilities for chief financial officers, focusing on intelligence across financial processes.
In addition, BlackLine delivered solid first-quarter results as non-GAAP earnings per share totaled $0.49, beating consensus estimates of $0.38. Revenue in the quarter was up 6% year over year to $166.9 million, beating consensus estimates of $166.7 million.
BlackLine, Inc. (NASDAQ:BL) provides cloud-based software that automates and streamlines businesses’ financial close and accounting processes. It focuses on financial close and consolidation solutions, accounts receivable, and inter-company accounting.