Software is eating the world, and virtually no company is unaffected by it. This secular theme makes SaaS companies attractive investment candidates, but it also comes with higher valuations that make reassessments more difficult. Unfortunately, rich prices have held them back over the past six months, as the sector’s 11.2% gain lagged the S&P 500’s 21% gain.
Investors should proceed with caution as only some companies are worth their valuations, and lucky for you, we started StockStory to help you find them. With that in mind, here are three software stocks with lasting benefits.
Market capitalization: $186.1 billion
Originally named after its founding product “Intuitive for the First User,” Intuit (NASDAQ:INTU) offers financial management software and services including TurboTax, QuickBooks, Credit Karma and Mailchimp to help consumers and small businesses manage their finances.
Why do we love INTU?
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Billing growth averaged 17.5% last year, indicating a healthy pipeline of new business that should drive future revenue increases
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Fast payback times on sales and marketing costs allow the company to invest heavily while attracting many customers
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The healthy operating margin of 26.1% shows that it is a well-managed company with efficient processes, and that operating leverage has increased profits over the past year
Intuit trades at $667.48 per share, or 8.9x forward price-to-sales. Is this the right time to buy? Find out in our full research report. It’s free for active Edge members.
Market cap: $56.78 billion
Named after a database that the founders had to painstakingly maintain at their previous company, Datadog (NASDAQ:DDOG) offers a software platform that allows organizations to monitor and secure their cloud applications, infrastructure and services.
Why do we support DDOG?
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The ability to secure long-term customer commitments is evident from the 26% ARR growth over the past year
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Fast payback times on sales and marketing costs allow the company to invest heavily while attracting many customers
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The strong free cash flow margin of 28.3% allows the company to consistently reinvest or return capital
At $163.44 per share, Datadog trades at a forward price-to-sales of 16.1x. Is Now the Time to Take a Position? Find out for yourself in our in-depth research report, it’s free for active Edge members.
Market cap: $3.19 billion
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ:BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Why could BRZE be a winner?
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Billing growth averaged 24.4% last year, indicating a healthy pipeline of new business that should drive future revenue increases
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The net revenue retention of 110% shows that the company enjoys a degree of customer loyalty
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The estimated revenue growth of 19.2% for the next twelve months implies that the momentum of the past two years will continue
Braze’s stock price of $28.23 implies a valuation ratio of 3.9x forward price-to-sales. Is this the right time to buy? Find out in our full research report. It’s free for active Edge members.
Trump’s tariff bomb in April 2025 caused a massive market sell-off, but stocks have since staged an impressive recovery, leaving those who panicked on the sidelines.
Take advantage of the recovery by checking out our top 5 growth stocks this month. This is a compiled list of our High quality shares that have generated a market-beating return of 183% over the past five years (as of March 31, 2025).
The stocks that made our list in 2020 include now household names like Nvidia (+1,545% between March 2020 and March 2025) and under-the-radar companies like the once microcap company Kadant (+351% over five years). Find your next big winner for free today with StockStory. Find your next big winner today with StockStory. Find your next big winner today with StockStory
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