Home Market News The Evolution of Software Stocks: March 2024 Insights

The Evolution of Software Stocks: March 2024 Insights

The Evolution of Software Stocks: March 2024 Insights

The buzz surrounding the top software stocks to buy in light of the growing interest in artificial intelligence has hit a crescendo. However, the allure of these stocks extends beyond AI, delving into other crucial niches within the tech landscape.

Unraveling the AI Paradox

While AI promises accelerated productivity, its potential malicious applications raise concern. Cybersecurity firms, therefore, stand to gain from the darker side of this digital revolution. It’s not just about boosting output; it’s about safeguarding it from malevolent exploits.

Last year, Americans amassed a staggering amount of debt, signaling a cry for financial guidance. This necessity could pave the way for specialized educational software providers to thrive within the tech ecosystem. The appeal of the software stocks discussed below extends far beyond the realm of AI.

The Cybersecurity Monolith: Check Point Software (CHKP)

Cybersecurity Stocks To Buy: Check Point Software (CHKP)

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As a multinational cybersecurity firm, Check Point Software (NASDAQ:CHKP) is a stalwart in the industry. Its suite of cybersecurity services covers network, endpoint, cloud, mobile, and data security. While AI holds promise for productivity, it also lowers the barrier for cybercriminals, making the role of firms like Check Point indispensable in combating online threats.

Financially, the outlook is promising. Analysts project 2024 revenue to hit $2.56 billion, marking nearly a 6% increase from the previous year. Further growth is anticipated in 2025, with revenues projected to reach $2.69 billion, signifying over 5% growth from the 2024 forecast.

Currently, experts maintain a consensus moderate buy rating on Check Point shares. With the average price target pointing towards $171.80, an upward potential of over 8% is on the horizon, making it a compelling pick among top software stocks to buy.

Riding the Financial Waves: NerdWallet (NRDS)

The NerdWallet (NRDS) logo displayed on a computer screen.

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NerdWallet (NASDAQ:NRDS), a personal finance platform, offers users a resource to make informed financial decisions. With the public drowning in debt, the need for financial literacy has never been higher. In the era of meme stocks and cryptocurrencies, NerdWallet’s guidance is invaluable in navigating the treacherous waters of the market.

Analysts predict the company to achieve sales of $621.66 million by the end of the current fiscal year, reflecting a 3.7% increase from the previous year. Looking ahead to 2025, sales are projected to rise to $693.58 million, marking an 11.6% uptick from the previous year’s revenue estimation. The glaring need for financial education makes NRDS an appealing choice among top software stocks to buy.

The Tech Powerhouse: Microsoft (MSFT)

Microsoft logo close up. Microsoft (MSFT) Flagship Store Fifth Avenue, Manhattan, NYC.

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Microsoft (NASDAQ:MSFT), an investor in OpenAI, is leading the charge in digital intelligence. The company’s robust performance is not solely tied to AI but also its indispensable Office 365 suite, which is crucial for businesses globally. In the corporate universe, Microsoft reigns supreme, with its tools like Excel being synonymous with spreadsheet software.

With the gig economy on the rise, the demand for Microsoft’s software services is set to soar. Personally, as a member of the gig economy, Microsoft is the backbone of my professional life. While other platforms exist, in my honest opinion, none come close to Microsoft’s prowess.

Analysts back Microsoft with a consensus strong buy rating and a price target of $469.34, implying a near 15% upside potential. For investors seeking top software stocks to buy in March, Microsoft stands out as a compelling choice.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.