In this article, we will list the 5 Undervalued Software Stocks to Buy Now. Please visit 8 Undervalued Software Stocks to Buy Now if you would like to see the extended list and the methodology behind it.
5. Q2 Holdings, Inc. (NYSE:QTWO)
Upside Potential as of July 10, 2026: 42.77%
On June 22, Ella Smith from JPMorgan trimmed the price target on Q2 Holdings, Inc. (NYSE:QTWO) to $60, down from $80. The firm has updated its financial models and price targets for the banking technology and digital banking space to December 2027 from December 2026.
With a constructive stance on the group, JPMorgan said “AI-defensibility concerns appear overstated relative to the entrenched workflow, data, and compliance moats these vendors have built.”
The firm appeared extremely optimistic on Q2 Holdings, Inc. (NYSE:QTWO) and Alkami, as they operate in a duopolistic digital banking market with solid retention, long contract durations, and opportunities for free cash flow expansion. The firm has an Overweight rating on QTWO.
Overall, Q2 Holdings, Inc. (NYSE:QTWO) has a Buy rating from the majority of the analysts covering the stock, with the remaining 14% having a neutral view. The company has a forward P/E of 21.01 and upside potential of approximately 43%, making it one of the undervalued software stocks to buy now.
Q2 Holdings, Inc. (NYSE:QTWO) is a Texas-based provider of digital solutions to financial institutions, FinTechs, and alternative finance companies. Founded in 2004, the company offers a digital banking platform, risk and fraud solutions, and a real-time core processing platform, among others.
4. CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC)
Upside Potential as of July 10, 2026: 43.58%
On July 10, Reuters’ Milana Vinn reported that CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) is exploring a potential sale of the company. The author cited three individuals familiar with the discussion. In addition to potential suitors, the company has engaged Morgan Stanley to advise on the sale process.
Earlier on July 2, Shlomo Rosenbaum, an analyst at Stifel, said that the CEO of CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) should consider taking the company private. The analyst believes that the market is currently underappreciating the company’s “moat, network effect, AI tailwind” at the “low valuation.”
Stifel said that the financials support deals, while highlighting that the business does not require a turnaround. The firm argues that the share pullback, due to AI disruption risk, has resulted in an opportunity for the CEO to take the company private again. With that said, the firm has a Buy rating and a price target of $9 on CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC).
CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCC) is an Illinois-based SaaS company specializing in innovative cloud and hyperscale technologies and applications for the property and casualty insurance industry.
3. Amdocs Limited (NASDAQ:DOX)
Upside Potential as of July 10, 2026: 50.26%
On June 29, KeyBanc started coverage on Amdocs Limited (NASDAQ:DOX) with a Sector Weight rating, saying that it is “constructive” on the company’s leadership within the telecom space. The firm has no price target.
According to KeyBanc, Amdocs Limited (NASDAQ:DOX) is in a solid position to drive even more share gains. However, its neutral stance is due to the company’s revenue and earnings growth profile, in contrast to that of its competitors.
The company’s prospects for growth acceleration, powered by AI opportunities, still remain in the early stages, the firm concluded. Thus, with an upside potential of approximately 50%, Amdocs Limited (NASDAQ:DOX) remains one of the undervalued software stocks to invest in.
Back on June 24, Amdocs Limited (NASDAQ:DOX) announced its selection as the telecom operator Three Scandinavia’s strategic partner to strengthen its current business and drive its digital transition across Sweden and Denmark. With a focus on enhancing selected customer engagement and commerce capabilities, the collaboration will improve the use of data and automation.
Amdocs Limited (NASDAQ:DOX) is a Missouri-based company offering software and services to a range of service providers, including communications, entertainment, and media. Founded in 1982, the company specializes in open and modular cloud solutions.
2. Klaviyo, Inc. (NYSE:KVYO)
Upside Potential as of July 10, 2026: 77.41%
On June 24, Callie Valenti from Goldman Sachs assumed coverage of Klaviyo, Inc. (NYSE:KVYO) with a price target of $26, implying approximately 54% upside. In a research note, the analyst highlighted the stock’s 30% decline following Q1 earnings. This was mainly due to the planned CFO departure and factors that added uncertainty around sequential and year-on-year trends, the analyst added.
The firm’s Buy rating is driven by Klaviyo, Inc. (NYSE:KVYO)’s exposure to a range of growth drivers, reinforcing a strong underlying business. This is supported by the company’s revenue growth, which remains at a high 20% pace, Valenti said.
Despite the negative returns, Klaviyo, Inc. (NYSE:KVYO) is a consensus Buy. The stock has 77.41% upside potential at the 1-year median price target of $30. With a forward P/E of 20.66 and quarterly revenue growth (yoy) of 27.90%, KVYO is one of the undervalued software stocks to buy now.
Klaviyo, Inc. (NYSE:KVYO) is a Massachusetts-based cloud-based SaaS platform offering CRM, Klaviyo Data Platform, Advanced KDP, and Marketing Agent, among others. Incorporated in 2012, the company mainly serves entrepreneurs, SMEs, and other enterprises.
1. Strategy Inc. (NASDAQ:MSTR)
Upside Potential as of July 10, 2026: 158.88%
On July 8, Barclays started coverage on Strategy Inc. (NASDAQ:MSTR) with an Overweight rating and a price target of $130. The initiation follows a broad sector reset, after which there is more emphasis on stock selection and identification of strong franchises that are well-positioned for long-term growth, the analyst said.
A day earlier, Mizuho trimmed the price target on Strategy Inc. (NASDAQ:MSTR) to $213 from $265 and maintained an Outperform rating. This comes after the revised Bitcoin holdings to 843,775 following the company’s recent Bitcoin selling activity. The new price target is based on the adjusted Bitcoin market price forecast for end-2027, set at $71,500.
Overall, Strategy Inc (NASDAQ:MSTR) has a Buy rating from 90% of the analysts covering the stock, with the remaining 10% neutral. With a 1-year median price target of $245, the stock has an upside potential of 158.88%. This potential is understandable given the stock’s nearly 78% decline over the past year.
Strategy Inc. (NASDAQ:MSTR) is a Virginia-based bitcoin treasury company. In addition to providing AI-powered enterprise analytics software, the company offers a range of securities that provide investors with economic exposure to bitcoin.
While we acknowledge the potential of MSTR to grow, 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 MSTR and that has 100x upside potential, check out our report about the cheapest AI stock.
READ NEXT: Starter Stock Portfolio: 14 Safe Stocks to Buy Now and 40 Most Popular Stocks Among Hedge Funds Heading Into 2026.
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