Because most aspects of people’s lives and organizations’ operations are now being digitized, the demand for software should continue to increase. With more organizations adopting cloud applications and products that could help their employees collaborate from afar and access data that are stored in remote data centers, there will likely be a substantial rise in IT spending going forward. Indeed, the global enterprise software market is expected to grow at an 8% CAGR to reach $634 billion by the end of 2023.
This bodes well for software stocks that are trading at reasonable prices now. Based on strong financials, we think Progress Software Corporation (PRGS), NetSol Technologies, Inc. (NTWK), and Evolving Systems, Inc. (EVOL) are primed to deliver handsome returns.