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.
11. Amplitude, Inc. (NASDAQ:AMPL)
1-Year Return as of June 16: 43.35%
Number of Hedge Fund Holders as of Q1 2025: 29
Amplitude, Inc. (NASDAQ:AMPL) is one of the 13 best software stocks to buy now. On June 16, BofA Securities raised its price target to $15 from $13 while reiterating a Buy rating on the stock. The adjustment follows an investor meeting where the company discussed its agentic AI product launch.
Amplitude also touted how it plans to power the next generation of AI-powered digital experiences. BofA remains confident in Amplitude’s differentiated platform, which positions it to gain market share in the long term. The research firm expects the company to capitalize on the digital analytics market valued at over $50 billion.
Continued execution improvements should allow Amplitude to reduce its 55% discount multiple compared to its peers in the industry. Strategic product advancements have been the company’s priority, as seen by the quick uptake of the new Guides and Surveys product. The remarks come on the company delivering a 10% year-over-year revenue growth in Q1 2025 to $80 million. Annual recurring revenue also recorded a 12% growth.
Amplitude, Inc. (NASDAQ:AMPL) is a digital analytics platform that helps companies understand customer behavior within their digital products. It provides tools and insights to analyze user engagement, identify patterns, and improve product design and performance.
10. Strategy Incorporated (NASDAQ:MSTR)
1-Year Return as of June 16: 154.01%
Number of Hedge Fund Holders as of Q1 2025: 33
Strategy Incorporated (NASDAQ:MSTR) is one of the 13 best software stocks to buy now. On June 16, the company confirmed the addition of $1 billion worth of Bitcoin into its portfolio. The company acquired 10,100 bitcoin during the week ending June 15, as the Israel-Iran conflict continues to pressure the markets.
The purchase came on Bitcoin dropping from $110,000 to a low of $103,639 on June 12. Strategy leveraged the pullback to purchase the flagship cryptocurrency as Israel continues to strike Iranian nuclear facilities, sending shockwaves in the equity markets. The purchase also came as Strategy’s third bitcoin-backed preferred stock started trading on the NASDAQ on June 11.
Following the purchase, Strategy’s total holding now stands at 592,100 BTC, acquired for about $41.8 billion at an average price of $70.666 per coin.
Strategy Incorporated (NASDAQ:MSTR) provides cloud-native, AI-powered enterprise analytics software. It is also the world’s first and largest Bitcoin Treasury Company, holding Bitcoin as its primary treasury reserve asset. The company leverages its software expertise and Bitcoin strategy to explore innovation in business intelligence and applications.
9. SailPoint Technologies Holdings, Inc. (NYSE:SAIL)
1-Year Return as of June 16: 7.52%
Number of Hedge Fund Holders as of Q1 2025: 41
SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is one of the 13 best software stocks to buy now. On June 12, JPMorgan reiterated a ‘Neutral’ rating on the stock and increased the price target to $26 from $25. The adjustments follow what the investment bank touted as a solid first real quarter post-IPO.
According to JPMorgan, SailPoint delivered annual recurring revenue and profitability that beat consensus estimates. The company achieved 30% year-over-year growth in ARR in the first quarter. Half of the ARR growth came from new customers, while the other half from existing customer expansion.
JPMorgan also noted that the company has not experienced any fundamental change in line with the challenging macroeconomic environment. Instead, the company benefits from strength driven by large customer traction and identity rising as an investment priority. The investment firm is also buoyed by the company’s product innovation, healthy traction in Machine identity, and the introduction of the Harbor Pilot. Consequently, SailPoint Technologies expects to gain market share and increase the priority stack.
SailPoint Technologies Holdings, Inc. (NYSE:SAIL) is a company that provides enterprise software for identity security and governance. It offers solutions that help organizations manage and secure user identities.
8. Check Point Software Technologies Ltd. (NASDAQ:CHKP)
1-Year Return as of June 16: 41.18%
Number of Hedge Fund Holders as of Q1 2025: 44
Check Point Software Technologies Ltd. (NASDAQ:CHKP) is one of the 13 best software stocks to buy now. On June 16, analysts at Mizuho reiterated a ‘Neutral’ Rating on the stock but raised the price target to $240 from $230. The adjustment reflects the recent appreciation in the company’s comparable multiples.
The company’s head of investor relations, Kip Meintzer, has already noted that the company is yet to experience a negative impact from deteriorating macroeconomic conditions. Likewise, Meintzer expects Check Point Software’s subscription revenue to grow significantly by the end of the year.
On its part, Mizuho is confident that Checkpoint Software Technologies will benefit from healthy appliance refresh cycles throughout the year. Nevertheless, the research firm has stuck with the neutral rating, insisting the company has much to prove on reaccelerating the business.
Mizuho’s price target hike also comes on the heels of Checkpoint Software Technologies’ announcement of the acquisition of Veriti Cybersecurity. The acquisition is poised to enhance its hybrid mesh security vision.
Check Point Software Technologies Ltd. (NASDAQ:CHKP) develops, markets, and supports a range of products and services for IT security worldwide. It provides a multilevel security architecture that defends enterprises’ cloud, network, mobile devices, endpoint information, and IOT solutions.
7. Shopify Inc. (NASDAQ:SHOP)
1-Year Return as of June 16: 62.91%
Number of Hedge Fund Holders as of Q1 2025: 56
Shopify Inc. (NASDAQ:SHOP) is one of the 13 best software stocks to buy now. On June 16, DA Davidson increased its price target for Shopify (NASDAQ:SHOP) to $125 from $115 while maintaining a Buy rating. The adjustment follows Shopify’s strong Q1 2025 results, with 26.5% revenue growth and a solid liquidity position. Analysts see the business as more resilient than expected and believe AI will enhance merchant engagement and growth.
Despite rising competition, DA Davidson remains confident in Shopify’s market leadership. The firm’s valuation reflects optimism about Shopify’s long-term potential, pricing the stock at 12 times its estimated 2026 revenue. Shopify continues to expand its merchant services and platform capabilities to strengthen its position in e-commerce.
Shopify Inc. (NASDAQ:SHOP) is a global commerce technology company that helps businesses of all sizes start, scale, and manage their operations. Its platform enables merchants to handle inventory, payments, orders, and customer relationships across online stores, physical locations, and marketplaces.
6. Automatic Data Processing, Inc. (NASDAQ:ADP)
1-Year Return as of June 16: 25.53%
Number of Hedge Fund Holders as of Q1 2025: 65
Automatic Data Processing, Inc. (NASDAQ:ADP) is one of the 13 best software stocks to buy now. On June 13, UBS reiterated a ‘Neutral’ rating on the stock but cut the price target to $315 from $323. The adjustment follows significant updates at the company’s investor day in New York City.
The software company revised its revenue growth expectations to 6% and 7% at the event. Management also reiterated they expect earnings per share to grow by between 9% and 11%, a 200 basis point reduction from 2021 predictions.
Automatic Data Processing’s Professional Employer Organization Segment accounts for about 35% of total revenue and is expected to grow by 6% and 8%, down from a previous forecast of 10% and 12%.
UBS remains optimistic about the company’s long-term prospects, as it has a 15% market share in the human capital management market. Consequently, it is expected to generate significant value given that the total addressable market is expected to expand to $180 billion from $175 billion. Nevertheless, it maintains a neutral stance as it monitors the impact of technology and distribution investments on margins.
Automatic Data Processing, Inc. (NASDAQ:ADP) is a software application company that provides solutions that automate data handling, particularly through software and services, to streamline business operations.
5. Fair Isaac Corp. (NYSE:FICO)
1-Year Return as of June 16: 28.34%
Number of Hedge Fund Holders: 68
Fair Isaac Corp. (NYSE:FICO) is one of the 13 best software stocks to buy now. On June 13, RBC Capital reiterated an ‘Outperform’ rating on the stock and set a price target of $2,170. The firm reaffirmed the bullish stance in response to the publication of a Federal Housing Finance Agency 2024 Annual Report.
The report did not offer any updates on credit scoring systems. Most importantly, there was no mention of transitioning from tri-merge to bi-merge credit reporting. In addition, the report did not have any new requirements for adopting FICO Scores 10t or VantageScore 4.0. RBC Capital reiterated the outperform rating, affirming its optimistic outlook for the company.
Fair Isaac Corp. (NYSE:FICO) is a software application company that provides analytic, software, and data management products and services that help businesses automate, improve, and connect decisions. It is best known for developing the FICO® Score, a widely used credit score.
4. ANSYS, Inc. (NASDAQ:ANSS)
1-Year Return as of June 16: 3.59%
Number of Hedge Fund Holders: 74
ANSYS, Inc. (NASDAQ:ANSS) is one of the 13 best software stocks to buy now. On June 13, the company suffered a significant blow in its proposed $35 billion merger with Synopsys, Inc. (NASDAQ:SNPS). China’s Market regulator postponed its approval of the deal in response to the US tightening chip export controls against the country.
China’s State Administration for Market Regulation (SAMR) had set a 180-day timeline for approving the deal but has since postponed it. However, the deal has already secured the US and EU green light.
China’s action follows the US administration imposing additional export controls on shipments of semiconductor design software and jet engines for Chinese-made planes. President Donald Trump’s administration’s move to ban chip design software sales by companies, including Synopsys, appears to have rattled Chinese regulators.
Synopsys has already received an order from the US Commerce Department Bureau of Industry and Security to cease all sales and services in China. Nevertheless, the $35 billion deal could still secure regulatory approval in China if Synopsys submits a proposal that addresses regulators’ concerns.
ANSYS, Inc. (NASDAQ:ANSS) is a software application company that develops and markets engineering simulation software. It provides tools for simulating how products will behave in the real world, helping engineers design and improve products, optimize workflows, and make better decisions.
3. Oracle Corporation (NYSE:ORCL)
1-Year Return as of June 16: 49.09%
Number of Hedge Fund Holders as of Q1 2025: 97
Oracle Corporation (NYSE:ORCL) is one of the 13 best software stocks to buy now. On June 17, Oracle introduced the Oracle Defense Ecosystem to help defense innovators integrate advanced AI and cloud technologies into government and military operations. The initiative aims to strengthen national security by providing emerging tech companies with opportunities to collaborate, access Oracle Cloud Infrastructure (OCI), and navigate complex defense procurement processes. Initial members include AI and security firms like Arqit, Blackshark.ai, and Metron, among others.
The program offers key benefits such as sales support, defense acquisition guidance, discounted access to Palantir’s AI platform, and streamlined compliance with security regulations. Members can also showcase their solutions in the Oracle Cloud Marketplace, receive cybersecurity assistance, and access Oracle’s business management suite, NetSuite, at preferred pricing.
With decades of defense and intelligence experience, Oracle is positioning itself as a key player in defense innovation. By offering direct support and resources, the company aims to accelerate technological advancements in military applications while expanding its role in federal defense contracting.
Oracle Corporation (NYSE:ORCL) is a technology company that develops and sells hardware and software products, focusing on cloud computing and enterprise software. They offer various products, including databases, cloud infrastructure, enterprise resource planning (ERP), and customer relationship management (CRM) software.
2. Snowflake Inc. (NYSE:SNOW)
1-Year Return as of June 16: 60.90%
Number of Hedge Fund Holders: 94
Snowflake Inc. (NYSE:SNOW) is one of the 13 best software stocks to buy now. On June 16, the company announced it had inked a strategic collaboration with Interpublic Group of Companies, Inc. (NYSE:IPG) Acxiom. The two are joining forces to enhance the delivery of modern AI-powered marketing data infrastructure. Their ultimate goal is transforming how brands leverage artificial intelligence to improve marketing.
IPG is to bring its proprietary data identity and collaboration tools into brands at a global scale. The tools will come in handy in modernizing outdated data practices and delivering a first-of-its-kind, secure, and transparent AI-powered marketing foundation.
This partnership opens up a whole new world of marketing possibilities for brands. Brands can gain unprecedented visibility and control over their data flow across applications, agencies, and platforms by integrating IPG’s cutting-edge technologies.
Snowflake Inc. (NYSE:SNOW) is a cloud-based data platform that provides data warehousing, data lakes, data engineering, data science, and data application development capabilities. It allows organizations to store, analyze, and share data securely and efficiently, focusing on scalability and flexibility.
1. Salesforce Inc. (NYSE:CRM)
1-Year Return as of June 16: 13.73%
Number of Hedge Fund Holders as of Q1 2025: 140
Salesforce Inc. (NYSE:CRM) is one of the 13 best software stocks to buy now. On June 13, analysts at Stifel reiterated a ‘Buy’ rating on the stock with a $375 price target following the company’s Marketing and Commerce Focused event in Chicago.
The event allowed Stifel analysts to interact with the company’s partners and customers. During the event, Salesforce unveiled Marketing Cloud Next, a platform combining ExactTarget, Pardot, Datorama, and Evergage into a single, integrated solution.
The integrated platform will have built-in Data Cloud and Agentforce capabilities to address long-standing fragmentation across marketing technology. Featuring agentic artificial intelligence capabilities, Marketing Cloud Next will feature agents capable of answering customers’ questions in chats, texts, and emails. It can also draft marketing campaigns and briefs that summarize them.
Salesforce Inc. (NYSE:CRM) is a cloud-based software company that provides customer relationship management (CRM) services. It offers a platform for businesses to connect with their customers meaningfully by managing sales, service, marketing, commerce, and IT teams in one place
While we acknowledge the potential of Salesforce Inc. (NYSE:CRM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CRM and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 12 Best Healthcare Stocks to Buy Now and 10 Stocks Analysts Are Upgrading Today.
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