Software eats the world and virtually no things are left through the world. This secular theme makes Saas companies attractive investment candidates, but also comes with higher valuations that cause volatility. Unfortunately, the rich prices have pursued them in the last six months, because the industry has dropped 12.3%. This version is far away from the S&P 500s 5.5% rise.
However, some companies can support their premium ratings with superior profit growth, and our mission at StockStory is to help you find them. On that comment here is one software stock with a sustainable benefit and two that can experience problems.
Market capitalization: $ 6.73 billion
Wix.com (Nasdaq: Wix), founded in 2006 in Tel Aviv and offers a free and easy -to -use website building platform.
Why is Wix falling short?
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In the past three years, sales have increased by 11.7% annually, acceptable on an absolute basis, but lukewarm for a software company that enjoys secular tail winds
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The gross margin of 68.4% is lower
For $ 120.86 per share, WIX acts with 3.4x forward price-to-sales. Dive into our free research report to see why there are better opportunities than Wix.
Market capitalization: $ 2.00 billion
Teradata (NYSE: TDC) Part of Point-of-Sale and ATM company NCR from 1991 to 2007, offers a Software-As-Service Platform that helps organizations to manage and analyze their data in multiple storage places.
Why would you sell TDC?
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Customers had a second thought about holding his platform in the past year, because invoicing falls on average 6.2%
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Turnover is expected to refuel by 2.5% in the coming 12 months, because the demand continues to evaporate
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The gross margin of 59.3% reflects the high maintenance costs
The share price of Teradata of $ 21.17 implies a valuation ratio of 1.2x forward price-to-sales. View our full research report to fully understand why you should be careful with TDC (it’s free).
Market capitalization: $ 49.53 billion
Paychex (Nasdaq: Payx), one of the oldest service providers in the industry, offers its customer charges and HR software solutions.
Why is Payx standing out?
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The expected sales growth of 17.5% for the next 12 months indicates that demand will rise above his three -year trend
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Very efficient business model is illustrated by the impressive 39.6% operational margin
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Payx is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
Paychex is traded at $ 137.72 per share, or 7.6x forward price-to-sales. Is a good time to buy now? Discover it in our full research report, it’s free.
When Trump unveiled his aggressive tariff plan in April 2025, Markets feared a complete trade war as investors. But those who panicked and sold missed the subsequent rebound that the most losses have already erased.
Don’t let fear like great opportunities and view the top 6 shares for this week. This is a compound list of our High quality Shares that have generated a market -colored return of 183% in the last five years (from March 31, 2025).
Shares that made our list in 2020 now contain well-known names such as Nvidia (+1,545% between March 2020 and March 2025), as well as companies under the radar such as the once Klein Cap-company Comfort Systems (+782% five years of return). Find your next big winner with StockStory with StockStory for free today. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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