With rising demand for advanced software solutions, the industry is expected to achieve solid growth this year and beyond. Hence, Wall Street analysts expect low-priced software stocks Otonomo (OTMO) and Exela (XELA) to more than double in price in the near term. So, we think it could be worth adding these stocks to one’s watch list. Read on.The continuation of remote working and ongoing digital transformation have been helping the software industry grow. Investors’ interest in this space is evidenced by the SPDR S&P Software & Services ETF’s (XSW) 49.7% gains over the past year, versus the SPDR S&P 500 Trust ETF’s (SPY) 38.3% returns.
The growing demand for advanced software products and services by almost every industry should help the software industry continue growing in the coming months. According to Grand View Research, the global business software and services market is expected to grow at an 11.3% CAGR between 2021 - 2028.
Given this industry’s promising prospects, analysts are highly optimistic about the near-term performance of low-priced software stocks Otonomo Technologies Ltd. (OTMO) and Exela Technologies, Inc. (NASDAQ:XELA). So, we think it could be wise to add these stocks to one’s watchlist.