The increase in hybrid work-life structures and the ongoing digital transformation should help the software industry grow this year and beyond. Hence, we think it could be wise to bet on fundamentally sound software stocks Open Text (NASDAQ:OTEX), PTC (NASDAQ:PTC), and Progress Software (NASDAQ:PRGS). The names are expected to rally in price in the near term. Read on.With the resurgence of COVID-19 cases in several countries, the hybrid working trend is expected to continue. This, along with continuing digitization, should drive the demand for software solutions. Investors’ increasing interest in software stocks is evidenced by the SPDR S&P Software & Services ETF’s (XSW) 13.2% returns over the past six months.
The growing need for advanced software products and services in almost every industry should help the software industry keep 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.
Therefore, we think it could be wise to scoop up shares of quality software stocks Open Text Corporation (OTEX), PTC Inc. (PTC), and Progress Software Corporation (PRGS), which are expected to rally in price in the coming months.