2 Software Stocks Wall Street Says Could Surge 100%

With an increasing focus on digitization, process automation, and data analytics to gain more business insights and efficiency, the demand for software solutions has grown tremendously. In addition, the shift to cloud computing and software-as-a-service has been…

helping the software industry generate continuing growth.

Furthermore, growing demand 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 by 2028.

Given this industry’s promising prospects, analysts are highly optimistic about the near-term performance of software stocks Domo, Inc. (DOMO – Get Rating) and PubMatic, Inc. (PUBM – Get Rating). So, we think it could be wise to add these stocks to your watch list.

Click here to check out our Software Industry Report for 2022

DOMO operates a cloud-based platform in the United States. Its platform digitally connects from the CEO to the frontline employee with the people, data, and systems in an organization, giving them access to real-time data and insights and managing the business from smartphones. DOMO is headquartered in American Fork, Utah.

On March 1, 2022, Bruce Felt, DOMO’s CFO, said, “With increased ramped-up sales rep productivity, accelerating new logo growth and continued engagement and upsell performance in our customer base, we believe we are in a strong position to meet our growth objectives as we head into our fiscal 2023.”

DOMO’s revenue gained 23% year-over-year to $62.80 million for its fiscal fourth quarter, ended Jan. 31, 2022. Its gross profit grew 21.6% year-over-year to $51.47 million. And the company’s total assets came in at $244.58 million, up 13% year-over-year.

For its fiscal year 2024, analysts expect DOMO’s EPS to increase 54.9% year-over-year. In addition, it surpassed the consensus EPS estimates in three of the trailing four quarters. Its revenue is expected to increase 21.5% year-over-year to $313.44 million in its fiscal year 2023. Wall Street analysts expect the stock to hit $87.67 in the near term, which indicates a potential 104.1% upside.

PubMatic, Inc. (PUBM – Get Rating)

PUBM in Redwood City, Calif., provides a cloud infrastructure platform that enables real-time programmatic advertising transactions for Internet content creators and advertisers worldwide. Its platform supports an array of ad formats and digital device types.

On Feb. 28, 2022, Rajeev Goel, co-founder, and CEO at PUBM, said, “Our infrastructure-driven approach, combined with our usage-based software model, strengthens our competitive advantages and funds continuous innovation and investment in future growth. This flywheel underpins our…

 

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