In this article, we will look at the 14 Best Software Stocks to Buy According to Wall Street Analysts.
On January 29, Michael Sansoterra, Silvant Capital CIO, appeared on a CNBC Television interview to discuss his outlook on the technology sector. He believes that the technology stocks will continue to exceed expectations and holds 6 “Magnificent Seven” stocks as his top holdings. He noted that what really matters for the investors is the earnings and free cash flow. Michael believes that as the large-cap companies continue to release earnings, investors are going to see these companies exceed earnings. He added that most of the large-cap tech stocks have strong fundamentals, which, coupled with earnings beats, will lead to continued performance for the sector.
That said, earlier on January 15, Gil Luria, D.A. Davidson & Co. managing director, appeared on a separate CNBC interview to discuss his bull case for the software sector. Luria noted that his bull case is based on a simple reality that software businesses are the best kind of businesses due to the recurring nature of revenue. He added that software businesses are not only recurring, but they scale well and offer high incremental margins. He noted that the current market sell-off is a market overreaction and that it might be a good chance to buy some good software stocks before they take off.
With that, let’s take a look at the 14 Best Software Stocks to Buy According to Wall Street Analysts.
Our Methodology
To curate the list of 14 Best Software Stocks to Buy According to Wall Street Analysts, we used the Finviz Stock Screener, CNN, and Insider Monkey’s Q3 2025 database. Using the screener, we aggregated a list of software stocks with more than 30% upside potential. Next, we cross-checked the analysts’ sentiment from CNN and ranked the stocks in ascending order of the upside potential. We have also added the number of hedge funds holding each stock as of Q3 2025, sourced from Insider Monkey’s database. Please note that the data was recorded on January 29, 2026.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
14 Best Software Stocks to Buy According to Wall Street Analysts
14. Uber Technologies, Inc. (NYSE:UBER)
Number of Hedge Fund Holders: 143
Upside: 34.84%
Uber Technologies, Inc. (NYSE:UBER) is one of the Best Software Stocks to Buy According to Wall Street Analysts. On January 30, Justin Post from Bank of America Securities reiterated a Buy rating on the stock, but lowered the price target from $119 to $110. Earlier, on January 27, Mark Kelley from Stifel Nicolaus also reiterated a Buy rating on Uber Technologies, Inc. (NYSE:UBER) but lowered the price target from $122 to $105.
Justin Post from BofA noted that the rating comes ahead of the company’s Q4 earnings release expected on February 4. The analyst noted that they expect the company to post growth in bookings and also sees significant upside in revenue estimates. However, the firm expects EBITDA estimates for Uber to be around $2.47 billion, which is below Wall Street’s expectations of $2.48 billion. BofA noted that they expect slightly lower EBITDA to account for the company’s investment in growth.
On the other hand, analysts at Stifel highlighted concerns regarding the impact of robotaxis on Uber Technologies, Inc. (NYSE:UBER)’s business. However, the firm also acknowledged that the debate is not expected to be settled anytime soon. Although the firm lowered the price target slightly, they remain optimistic on the company’s near-term outlook.
Uber Technologies, Inc. (NYSE:UBER) operates as a technology platform that offers ride services and merchant delivery service providers for food, groceries, meal preparation, and other delivery services.
13. Palantir Technologies Inc. (NASDAQ:PLTR)
Number of Hedge Fund Holders: 81
Upside: 35.13%
Palantir Technologies Inc. (NASDAQ:PLTR) is one of the Best Software Stocks to Buy According to Wall Street Analysts. Wall Street is bullish on Palantir Technologies Inc. (NASDAQ:PLTR) ahead of its fiscal Q4 2025 results, expected to be announced on February 2.
Recently, on January 27, Mariana Perez Mora from Bank of America Securities reiterated a Buy rating on the stock without disclosing any price targets. However, earlier, on January 26, Rishi Jaluria from RBC Capital reiterated a Sell Rating on the stock with a $50 price target.
Management expects Q4 2025 revenue to be in the range of $1.327 billion and $1.331 billion, with income from operations around $695 million to $699 million. Wall Street expects revenue around $1.34 billion, along with a GAAP EPS of $0.18.
Analysts at RBC Capital noted that the conservative outlook on Palantir Technologies Inc. (NASDAQ:PLTR) is based on the government data tracker, which suggests a decline in qualified contract value and also a decline in annual contract value. However, RBC capital acknowledged that the uncertainty in geopolitics is anticipated to add long-term demand for the company. Moreover, the firm also highlighted that after talking with some customers of Palantir, they find customers reassessing their contracts with the company or moving away from the solutions. Overall, RBC Capital finds the company’s risk/reward situation inclined towards the negative side, hence a Sell rating.
Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms for the intelligence community to help in counterterrorism investigations and operations.
