13 Best Software Stocks to Buy Right Now

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In this article, we will take a look at the 13 Best Software Stocks to Buy Right Now.

The software industry is evolving at an unprecedented pace, with significant advancements in coding languages, structures, frameworks, methodologies, and other technologies. More specifically, the industry has benefited significantly from the increased demand for digital transformation. Until recently, the growth outlook appeared promising due to the increasing use of Software-as-a-Service (SaaS), which provides an adaptive and cost-effective distribution mechanism for apps.

In that sense, the global SaaS sector was estimated at over $3 trillion in 2022, capping a decade of rapid growth, with McKinsey forecasting that it might reach $10 trillion by 2030.

At the same time, disruption is being accelerated by AI’s rapid adoption. Industry sectors that heavily depend on services or entry-level positions are therefore under tremendous strain, closing coding boot programs and delaying the hiring of junior tech. This is further evidenced by reports stating that a growing number of Gen Z graduates are having trouble obtaining employment in a field that used to have fairly rapid hiring rates some years ago.

13 Best Software Stocks to Buy Right Now

Our Methodology

To compile our list of the best software stocks to buy, we used the Finviz stock screener to look for U.S.-listed companies in the industry with strong fundamentals. We then ranked them according to the number of hedge funds that held stakes in them as of the second quarter of 2025.

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).

13. Cloudflare, Inc. (NYSE:NET)

Number of Hedge Fund Holders: 59

Cloudflare, Inc. (NYSE:NET) ranks among the best software stocks to buy right now. On August 29, following a meeting with Cloudflare’s CEO Matthew Prince at its 2025 Tech Executive Summit, Stifel reaffirmed its Buy rating and $230 price target for Cloudflare, Inc. (NYSE:NET). The firm expressed confidence in Cloudflare’s prospects across multiple focus areas and spoke with Prince about several subjects, including Act 4, Zero Trust, AI, and Cloudflare’s organizational maturity.

Stifel believes Cloudflare, Inc. (NYSE:NET) can grow by 25%-30%+ in the following years, while also expanding operating margin and free cash flow, thanks to its expanding portfolio and ongoing go-to-market enhancements.

For the upcoming years, the firm states that Cloudflare, Inc. (NYSE:NET) provides “the most upside optionality” in its coverage universe.

Cloudflare, Inc. (NYSE:NET) is a cloud-based cybersecurity and website management company that also offers routing and developer security solutions. It operates in numerous main categories, including Security Solutions, Performance Enhancement, Reliability, Zero Trust Infrastructure, and others.

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