The continuation of remote working and ongoing digital transformation have been helping the software industry generate unabated growth. So, we think it could be wise to bet now on fundamentally sound software stocks SAP (SAP) and QAD (NASDAQ:QADA), which are expected to gain in the near term based on their strong financials and positive analyst sentiment.Most software stocks have soared in price over the past year because the pandemic-induced remote lifestyle forced individuals and businesses to depend on software, particularly cloud-based services. The trend has been continuing this year, with an increasing adoption of advanced software in almost every industry as part of their digital transformation efforts.
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 backdrop, we think it could be wise to scoop up the shares of software stocks SAP SE (DE:SAPG) (SAP) and QAD Inc. (QADA) because of their solid financials and continued innovations. Both names are rated Strong Buy in our POWR Ratings system.