Top 3 Picks
2026 Outlook
The software sector is poised for robust growth through 2026, driven by trends such as AI integration, SaaS proliferation, and increased enterprise spending on digital tools, with projected global revenues exceeding $1 trillion annually. Key drivers include the rise of edge computing, heightened cybersecurity needs, and the ongoing shift to remote and hybrid work environments, which will sustain demand for innovative solutions. By 2026, the sector's outlook remains positive, with a compound annual growth rate of around 12%, supported by advancements in data analytics and cloud infrastructure that enhance efficiency and competitiveness.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Weave Communications, Inc.
|
70.0 | $7.17 | $497M |
|
2
|
CCC Intelligent Solutions Holdings Inc. Common Stock
|
69.5 | -- | $5.9B |
|
3
|
AvidXchange Holdings, Inc. Common Stock
|
69.3 | -- | $2.1B |
|
4
|
Microsoft Corp
|
67.8 | $472.94 | $3.9T |
|
5
|
SoundThinking, Inc. Common Stock
|
66.4 | $7.75 | $154M |
|
6
|
Zeta Global Holdings Corp.
|
66.3 | $19.91 | $4.8B |
|
7
|
Take-Two Interactive Software Inc
|
65.7 | $251.60 | $47.1B |
|
8
|
Mobileye Global Inc. Class A Common Stock
|
65.5 | $11.23 | $11.5B |
|
9
|
CareCloud, Inc. 8.75% Series B Cumulative Redeemable Perpetual Preferred Stock
|
64.8 | $26.00 | -- |
|
10
|
GitLab Inc. Class A Common Stock
|
64.4 | $36.18 | $7.4B |
|
11
|
Dayforce, Inc.
|
63.6 | $69.27 | $10.9B |
|
12
|
SentinelOne, Inc.
|
63.3 | $14.64 | $5.8B |
|
13
|
Duos Technologies Group, Inc. Common Stock
|
63.2 | $10.80 | $149M |
|
14
|
Intellinetics, Inc.
|
62.5 | $7.97 | $52M |
|
15
|
AppFolio, Inc. Class A
|
62.4 | $230.37 | $9.2B |
In-Depth Analysis: Top Software Stocks
WEAV
Weave Communications Inc is a customer experience and payments software platform tailored for SMB healthcare businesses, that revolutionizes patient interaction from initial contact to billing. It integrates diverse workflows into a unified solution, minimizing manual tasks and maximizing patient engagement. Weave democratizes enterprise-level communication tools, simplifying them for SMBs in a singular platform. Offering varied communication channels, appointment scheduling, payment …
Weave Communications matters in the Software sector by offering a specialized platform that streamlines patient interactions and payments for SMB healthcare businesses, addressing a critical need in a rapidly digitizing industry. Its integration of workflows reduces manual tasks, positioning it as a key player in enhancing operational efficiency amid growing healthcare software demand.
Weave's negative profit margin of -14.3% and ROE of -44.6% highlight current unprofitability and poor equity returns, indicating challenges in cost management and capital efficiency. However, the company's 17.1% revenue growth demonstrates strong top-line expansion, suggesting potential for improved financial health as it scales operations.
Weave's 17.1% revenue growth indicates strong momentum in the healthcare software market, potentially leading to profitability by 2026 as the company expands its SMB customer base. The Tradestie Score of 70.0 reflects solid investment fundamentals, supported by its innovative platform that integrates diverse workflows and minimizes manual tasks. Investors should consider this stock for its niche positioning in a growing sector, where increasing digital adoption could drive significant market share gains and valuation upside by 2026.
CCCS
CCC Intelligent Solutions Holdings Inc is a provider of cloud, mobile, AI, telematics, hyperscale technologies and applications for the property and casualty insurance economy. The company's SaaS platform connects trading partners, facilitates commerce, and supports mission-critical, and AI-enabled digital workflows. It operates in a single segment being Domestic segment which provides SAAS platform for the P&C insurance economy and derives …
CCCS matters in the Software sector as a leading provider of AI-driven SaaS solutions tailored for the property and casualty insurance industry, leveraging cloud, mobile, and telematics technologies to streamline operations and enhance data connectivity among trading partners.
With a Tradestie Score of 69.5/100 indicating moderate financial stability, CCCS shows potential for profitability in its specialized niche, though limited data suggests careful monitoring of revenue growth from AI and cloud services.
By 2026, CCCS is poised for growth as the insurance sector increasingly adopts AI and telematics for efficiency, potentially driving higher adoption of its SaaS platform and expanding market share. The company's focus on mission-critical technologies could lead to significant revenue increases amid digital transformation trends. Moreover, advancements in hyperscale solutions position CCCS to capitalize on rising demand, offering strong upside for investors seeking exposure to insurtech innovation.
AVDX
AvidXchange Holdings Inc is a provider of AP automation software and payment solutions for middle-market businesses and their suppliers. It generates the majority of its sales from Payment revenue followed by Software revenue and Services revenue. The company generates revenue in the United States.
AvidXchange matters in the Software sector as a leading provider of AP automation and payment solutions tailored for middle-market businesses, addressing a critical need for efficient financial operations amid rising digital transformation demands in the US. Its revenue model, dominated by payment solutions followed by software and services, positions it as a key player in streamlining B2B transactions, which enhances operational efficiency for suppliers and buyers alike.
With limited financial data available, AvidXchange's Tradestie Score of 69.2/100 suggests moderate financial health, indicating potential stability in its revenue streams from payments, software, and services. The company's focus on high-margin payment revenue could improve profitability as it scales, though this relies on sustained demand in the US market.
By 2026, AvidXchange's stock could appeal to investors due to projected growth in digital payment adoption, potentially boosting its primary revenue stream and expanding market share in the US. The Tradestie Score of 69.2 signals underlying strengths in fundamentals, offering a foundation for appreciation as the company capitalizes on trends like automated AP processes. Furthermore, increasing regulatory pushes for efficient financial solutions in middle-market businesses may drive demand, positioning AvidXchange for enhanced earnings and stock value.
MSFT
Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite. The company is organized into three equally sized broad segments: productivity and business processes (legacy Microsoft Office, cloud-based Office 365, Exchange, SharePoint, Skype, LinkedIn, Dynamics), intelligence cloud (infrastructure- and platform-as-a-service offerings Azure, Windows Server OS, SQL Server), and more personal …
Microsoft is a cornerstone in the Software sector due to its dominant market position with Windows, which runs on over 80% of global desktops, and the Office suite, which is indispensable for business productivity worldwide. Its three equally sized segments, including cloud-based offerings like Office 365 and Exchange, enable it to drive innovation in both consumer and enterprise software markets.
Microsoft's financial health is strong, with a 35.7% profit margin and 32.2% return on equity (ROE) indicating efficient operations and high profitability relative to peers. Additionally, its 18.4% revenue growth reflects sustained expansion, though the 34.7 P/E ratio suggests investors are paying a premium for its growth potential.
Investors should consider buying MSFT stock in 2026 given its 18.4% revenue growth, fueled by expanding cloud services and productivity tools, which positions the company for continued market share gains in enterprise software. The 32.2% ROE highlights effective capital utilization, supporting long-term shareholder returns amid digital transformation trends. Furthermore, with a Tradestie Score of 67.8/100, MSFT offers a compelling mix of stability and growth opportunities in the evolving tech landscape.
SSTI
SoundThinking Inc is a public safety technology company that combines transformative solutions and strategic advisory services for law enforcement and civic leadership. Its flagship SafetySmart platform includes ShotSpotter, the acoustic gunshot detection system, CrimeTracer, the foremost law enforcement search engine, CaseBuilder, a one-stop investigation management system, and ResourceRouter, software that directs patrol and community anti-violence resources to help maximize their …
SoundThinking Inc. stands out in the Software sector for its innovative public safety technologies, such as the ShotSpotter acoustic gunshot detection system and CrimeTracer analytics, which enhance law enforcement efficiency and community safety. This positions the company as a vital contributor to the growing niche of civic safety software, addressing critical societal issues like gun violence through data-driven solutions.
SoundThinking's financial health is strained, evidenced by a negative profit margin of -10.4% and ROE of -14.6%, indicating ongoing losses and poor returns on shareholder equity. Despite a revenue decline of -4.4%, the Tradestie Score of 66.4/100 suggests moderate underlying potential, possibly from its specialized software offerings in a high-demand market.
By 2026, SoundThinking could benefit from increasing adoption of its SafetySmart platform amid rising investments in public safety technologies, potentially reversing the -4.4% revenue growth as urban areas prioritize gunshot detection systems. The company's strategic focus on law enforcement and civic leadership, combined with a Tradestie Score of 66.4, indicates opportunities for market expansion and operational efficiencies. Moreover, as software solutions for crime prevention gain traction, SSTI's innovative products like ShotSpotter may drive significant stock appreciation through enhanced partnerships and scalability.
ZETA
Zeta Global Holdings Corp is an omnichannel data-driven cloud platform that provides enterprises with consumer intelligence and marketing automation software. It serves enterprise customers across multiple industries, including financial services, insurance, telecommunications, automotive, travel and hospitality, and retail. Its Zeta Marketing Platform, or ZMP, is an omnichannel marketing platform with identity data at its core. The ZMP can analyze billions …
Zeta Global Holdings Corp. matters in the Software sector as a leading provider of omnichannel data-driven cloud platforms for consumer intelligence and marketing automation, serving enterprises in high-growth industries like financial services, insurance, and telecommunications. Its focus on data analytics and personalized marketing solutions positions it as a key innovator in an era where digital transformation is essential for competitive advantage.
Zeta's profitability is currently weak, evidenced by a negative profit margin of -1.9% and an ROE of -3.9%, indicating challenges in converting revenue into net income and inefficient use of equity. Despite these issues, the company's 25.7% revenue growth highlights strong demand for its services, suggesting potential for improved financial health if operational efficiencies are achieved.
Zeta's 25.7% revenue growth demonstrates robust demand in the expanding software sector, particularly in data-driven marketing, making it an attractive investment for 2026 as digital transformation accelerates. The Tradestie Score of 66.3/100 indicates a solid overall rating, reflecting potential for stock appreciation amid industry trends. Furthermore, Zeta's diverse customer base across high-growth sectors like telecommunications and automotive could drive further expansion and profitability by 2026.
TTWO
Take-Two is one of the largest global developers and publishers of video games, with labels including Rockstar, 2K, and Zynga. Grand Theft Auto is the firm's biggest franchise, accounting for about 30% of total sales for the past decade. NBA 2K is the industry's dominant basketball video game, with Take-Two releasing a new version annually. Other notable franchises include Red …
Take-Two Interactive is a dominant force in the video game segment of the software sector, leveraging iconic franchises like Grand Theft Auto, which accounts for 30% of sales, and NBA 2K, the leading basketball game, to drive innovation and cultural influence in interactive entertainment.
Take-Two's financial health is strained, with a negative profit margin of -64.3% and ROE of -86.6%, reflecting significant losses likely due to high development and acquisition costs; however, the company's 31.1% revenue growth indicates strong top-line expansion that could improve profitability with successful future releases.
Take-Two's 31.1% revenue growth and Tradestie Score of 65.7 suggest strong momentum in the expanding video game market, with potential blockbuster releases from franchises like Grand Theft Auto enhancing sales by 2026. The company's dominant NBA 2K series positions it to capture more market share as esports and digital entertainment grow. Investors could see upside from operational efficiencies and economies of scale, turning current losses into profits as new titles drive revenue.
MBLY
Mobileye Global Inc engages in the development and deployment of ADAS and autonomous driving technologies and solutions. It is building a portfolio of end-to-end ADAS and autonomous driving solutions to provide the capabilities needed for the future of autonomous driving, leveraging a comprehensive suite of purpose-built software and hardware technologies. The company's reportable operating segment are Mobileye and Others. Its …
Mobileye Global Inc. matters in the Software sector as a leader in developing advanced driver-assistance systems (ADAS) and autonomous driving technologies, which are pivotal for the automotive industry's shift toward safer and more automated vehicles. Its comprehensive portfolio of end-to-end solutions positions it to capitalize on the growing demand for software-driven mobility innovations, potentially transforming global transportation standards.
Mobileye's profitability is currently weak, with a negative profit margin of -17.3% and a return on equity of -2.8%, indicating operational losses and inefficient equity utilization that highlight financial challenges in the competitive ADAS market. However, the company's revenue growth of 3.7% suggests ongoing expansion and potential for future profitability as it scales its autonomous driving technologies.
By 2026, investors should consider buying MBLY due to the anticipated surge in the autonomous vehicle market, where Mobileye's advanced ADAS solutions and revenue growth of 3.7% position it for increased adoption by major automakers. The Tradestie Score of 65.5 indicates moderate investment appeal, reflecting balanced risks amid technological advancements. As regulatory and consumer demand for autonomous features accelerates, Mobileye's portfolio could drive significant stock appreciation through enhanced market penetration.
CCLDO
CareCloud Inc delivers flexible, tech-enabled solutions for healthcare providers of all sizes and multi-specialties across the U.S. It is a healthcare technology company offering cloud-based solutions that simplify clinical, administrative, and financial workflows for medical practices of all sizes. Its comprehensive suite includes Electronic Health Records (EHRs), Practice Management, Revenue Cycle Management (RCM), Medical Billing, Telehealth, and Patient Experience solutions. …
CareCloud matters in the Software sector as a key player in healthcare technology, providing cloud-based solutions that streamline clinical, administrative, and financial workflows for U.S. medical practices, addressing the growing demand for digital health tools amid sector-wide digital transformation.
With a Tradestie Score of 64.8/100, CareCloud exhibits moderate financial health, suggesting reasonable operational stability in the competitive software landscape, though limited available data hinders a deeper assessment of profitability metrics like margins or revenue growth.
The 8.75% cumulative dividend yield on CCLDO offers a reliable income stream, making it attractive for investors seeking stability in 2026 as interest rates potentially remain low. As the healthcare software market is projected to grow at a 15-20% CAGR through 2026 due to increasing adoption of cloud solutions, CareCloud's tech-enabled services position it for potential revenue expansion and stock appreciation. Additionally, the perpetual and redeemable features provide downside protection, enhancing its appeal in a recovering economic environment.
GTLB
GitLab Inc operates on an all-remote model. GitLab, a complete DevSecOps platform delivered as a single application. It operates in two competitive landscapes: DevOps point solutions and DevOps platforms. In terms of point solutions that are stitched together, GitLab's offering is substantially different in that it is one platform, one codebase, one interface, and a unified data model that spans …
GitLab Inc. matters in the Software sector as a pioneer in all-remote operations and a leading provider of a comprehensive DevSecOps platform that integrates development, security, and operations into a single application, setting it apart from fragmented point solutions. This innovative approach addresses the growing demand for streamlined software development workflows, positioning GitLab as a key competitor in the DevOps market.
GitLab's negative profit margin of -5.1% and ROE of -5.6% reflect current unprofitability and challenges in generating returns on equity, indicating a need for cost management as the company scales. However, its strong revenue growth of 24.6% demonstrates robust business expansion and potential for improved financial health in the future.
By 2026, GitLab's 24.6% revenue growth rate suggests continued momentum in the expanding DevSecOps market, driven by increasing adoption of integrated platforms over disparate point solutions. The company's all-remote model enhances operational efficiency and global talent access, which could lead to margin improvements and cost savings. With a Tradestie Score of 64.4/100 indicating moderate appeal, investors may benefit from GitLab's differentiated offering as demand for seamless software development tools accelerates.
Methodology
Stocks are ranked using the Tradestie Score, a proprietary 0-100 rating that combines fundamental quality (profitability, balance sheet strength), growth metrics (revenue and earnings growth), valuation (P/E, PEG ratio), and momentum factors. Scores are updated daily based on the latest market data. Learn more about our methodology.