2 Software Stocks on Our Buy List and 1 We Turn Down
Summary
Software stocks have pulled back 15.4% over the past six months despite broader market gains, and the piece evaluates three software companies for investors. I recommend selling Commvault because its 10.3% five-year revenue growth lags peers, operating margin has declined, and it faces heavy sales-and-marketing pressure. I recommend buying Atlassian due to its high 84.8% gross margin, improving customer acquisition economics, and an expected jump in free cash flow margin. I also recommend buying Guidewire based on its core insurance platform used by hundreds of insurers across 42 countries, which supports durable demand.
Classifications
industries
HealthTech
applications
Collaboration & Communication
AskAI Classifications
Labels
SaaS
Insurance Software
Enterprise Software
