Top 3 Picks
2026 Outlook
By 2026, the software development sector is poised for robust growth, fueled by trends like artificial intelligence integration, escalating cybersecurity demands, and the proliferation of cloud-based solutions, with global software spending projected to exceed $1 trillion annually. Key drivers include the rise of remote work tools and data analytics, potentially boosting sector revenue by 10-15% CAGR, though challenges like regulatory scrutiny on data privacy could introduce volatility. Overall, the outlook remains positive, with innovations in AI and machine learning expected to create new investment opportunities and enhance competitive edges for leading firms.
Complete Rankings
| Rank | Stock | Score | Price | Market Cap |
|---|---|---|---|---|
|
1
|
Doximity, Inc.
|
65.5 | $43.29 | $13.2B |
|
2
|
VeriSign Inc
|
61.3 | $240.53 | $25.7B |
|
3
|
Innovative Solutions & Support
|
60.7 | $18.75 | $219M |
|
4
|
Compass, Inc.
|
60.0 | $10.50 | $4.3B |
|
5
|
RideNow Group, Inc. Class B Common Stock
|
58.6 | $5.95 | $167M |
|
6
|
Zscaler, Inc. Common Stock
|
54.3 | $220.57 | $48.2B |
|
7
|
Synchronoss Technologies Inc Common Stock
|
53.5 | $8.59 | $67M |
|
8
|
Pros Holdings, Inc.
|
53.0 | $23.25 | $1.1B |
|
9
|
Avalon GloboCare Corp. Common Stock
|
52.5 | $1.25 | $9M |
|
10
|
Rigetti Computing, Inc. Common Stock
|
51.4 | $23.60 | $9.7B |
|
11
|
Rigetti Computing, Inc. Warrants
|
51.2 | $12.82 | -- |
|
12
|
The Glimpse Group, Inc. Common Stock
|
50.7 | $0.95 | $31M |
|
13
|
XTI Aerospace, Inc. Common Stock
|
50.6 | $1.43 | $45M |
|
14
|
TruBridge, Inc. Common Stock
|
50.4 | $20.90 | $305M |
|
15
|
Cyngn Inc. Common Stock
|
49.0 | $2.75 | $41M |
In-Depth Analysis: Top Software Development Stocks
DOCS
Doximity Inc is a digital platform for U.S. medical professionals. The cloud-based platform provides members with tools specifically built for medical professionals, enabling them to collaborate with their colleagues, securely coordinate patient care, conduct virtual patient visits, stay up-to-date with the latest medical news and research, and manage their careers and on-call schedules.
Doximity matters in the Software Development sector as it specializes in healthcare-focused digital platforms, addressing the growing demand for secure, cloud-based tools that enhance medical collaboration and patient care amid the digital transformation of healthcare. Its targeted approach positions it as a leader in the health tech subsector, where specialized software solutions are increasingly vital for improving efficiency and outcomes in medical practices.
Doximity exhibits strong profitability with a 40.7% profit margin, indicating efficient operations and high revenue conversion compared to industry peers in software development. Its 24.6% ROE reflects effective use of equity to generate profits, while a 23.2% revenue growth rate demonstrates solid financial health, though the 35.7 P/E ratio suggests investors are pricing in expectations of continued expansion.
Investors should consider buying Doximity stock by 2026 given its 23.2% revenue growth, driven by increasing adoption of telemedicine and digital health tools in the U.S. healthcare sector. The company's 40.7% profit margin and 24.6% ROE highlight its financial resilience and potential for sustained earnings growth, making it attractive in a sector poised for expansion. Additionally, with a Tradestie Score of 65.5, Doximity offers a compelling opportunity for balanced returns as healthcare software demand accelerates through 2026.
VRSN
VeriSign is the sole authorized registry for several generic top-level domains, including the widely utilized .com and .net top-level domains. The company operates critical internet infrastructure to support the domain name system, including operating two of the world's 13 root servers that are used to route internet traffic. In 2018, the firm sold off its Security Services business, signalling a …
VeriSign matters in the Software Development sector as it serves as the exclusive registry for critical domains like .com and .net, enabling the foundational infrastructure for web-based applications and digital services. Its operation of two of the 13 global root servers ensures the reliability of the internet's domain name system, which is essential for developers building and deploying software on the web.
VeriSign exhibits exceptional profitability with a 49.9% profit margin, reflecting efficient cost management and strong pricing power in its niche market. Its 7.3% revenue growth and a P/E ratio of 28.7, combined with a Tradestie Score of 61.3, indicate solid financial health and moderate valuation appeal in the sector.
Investors should consider buying VeriSign stock in 2026 due to its dominant market position as the sole registry for key domains, supporting ongoing revenue growth of 7.3% amid increasing global internet demand. The company's high 49.9% profit margin provides resilience for potential expansions or shareholder returns, while a P/E of 28.7 suggests the stock is reasonably valued for its stable earnings in an essential infrastructure role. As digital transformation accelerates, VeriSign's critical services are poised to benefit from rising online activities, driving long-term value.
ISSC
Innovative Solutions and Support Inc is a systems integrator that designs, manufactures, sells, and services air data equipment, engine display systems, standby equipment, primary flight guidance, and cockpit display systems for retrofit applications and original equipment manufacturers. The company supplies integrated Flight Management Systems, Flat Panel Display Systems, Integrated Standby Units, Positioning System receivers that enable reduced carbon footprint navigation, …
Innovative Solutions and Support Inc. matters in the Software Development sector for its specialized embedded software in aviation systems, such as flight guidance and cockpit displays, which drive safety and efficiency for original equipment manufacturers and retrofit applications. This expertise positions the company as a vital contributor to advanced software solutions in high-stakes industries like aerospace.
ISSC's 18.5% profit margin and 28.1% ROE indicate strong profitability and efficient equity utilization, reflecting solid financial health in a competitive sector. Combined with a 44.6% revenue growth rate, these metrics suggest the company is effectively scaling operations while maintaining a reasonable 22.4 P/E ratio.
ISSC's 44.6% revenue growth highlights its potential for continued expansion in the aviation software market by 2026, driven by increasing demand for advanced systems. The 28.1% ROE demonstrates the company's ability to deliver high returns on equity, supporting long-term stock appreciation. With a Tradestie Score of 60.7, the stock presents a compelling opportunity for investors seeking growth in specialized software sectors.
COMP
Compass Inc provides an end-to-end platform that empowers residential real estate agents to deliver exceptional service to seller and buyer clients. The platform includes an integrated suite of cloud-based software for customer relationship management, marketing, client service and other critical functionality, all custom-built for the real estate industry and enabling core brokerage services. Business operations are conducted in the United …
Compass Inc. matters in the Software Development sector as it delivers a specialized end-to-end platform for real estate agents, integrating cloud-based tools for CRM, marketing, and client services, which drives efficiency in a sector ripe for digital transformation. This positions Compass as a key innovator in vertical SaaS, contributing to the broader adoption of software solutions in real estate.
Compass's negative profit margin of -0.9% and ROE of -9.4% reflect current unprofitability and challenges in equity utilization, indicating financial strain in the short term. However, the company's 23.6% revenue growth demonstrates strong expansion potential, which could enhance profitability if cost management improves.
Compass's 23.6% revenue growth highlights its ability to scale in the real estate software market, making it an attractive investment for 2026 as digital adoption accelerates. The Tradestie Score of 60.0 suggests moderate upside, and with ongoing innovations in cloud-based platforms, the company is poised to capture more market share and achieve profitability. By 2026, potential real estate market recovery could further boost demand for Compass's integrated services, driving stock appreciation.
RDNW
RideNow Group Inc is a USA-based online retailer that allows consumers and dealers both to Buy-Sell-Trade-Finance pre-owned motorcycles in an efficient, fast, transparent, and engaging experience.
RideNow Group matters in the Software Development sector as it pioneers digital platforms that streamline online marketplaces for niche markets like pre-owned motorcycles, integrating efficient buy-sell-trade-finance functionalities that enhance user engagement and transparency.
RideNow's profitability is weak, evidenced by a -9.3% profit margin and a -268.1% ROE, indicating the company is not only unprofitable but also significantly depleting shareholder equity; furthermore, the -4.7% revenue growth highlights ongoing sales declines that could strain financial health without corrective measures.
By 2026, RideNow could rebound as the online retail sector for vehicles grows, potentially improving its Tradestie Score of 58.6/100 through platform enhancements that drive user adoption and revenue; additionally, increasing demand for affordable, pre-owned motorcycles amid economic recovery might enable the company to achieve positive growth and profitability; thus, investors may find value in its software-driven model for long-term upside.
ZS
Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.
Zscaler matters in the Software Development sector as a pioneer in cloud-native cybersecurity solutions, addressing the growing demand for secure access in an increasingly digital enterprise landscape. Its innovative offerings, such as Zscaler Internet Access and Zscaler Private Access, help businesses mitigate cyber threats, positioning the company as a key player in enhancing cloud security amid rising global cyber attacks.
Zscaler's negative profit margin of -1.5% and ROE of -2.4% indicate current unprofitability and inefficient use of equity, reflecting challenges in achieving positive earnings despite rapid expansion. However, the company's robust revenue growth of 25.5% suggests strong market demand for its cybersecurity services, which could improve financial health if it successfully scales operations and controls costs.
With projected cybersecurity spending expected to grow significantly by 2026, Zscaler's 25.5% revenue growth demonstrates its ability to capture market share in the expanding cloud security segment, making it an attractive investment for long-term gains. The company's innovative SaaS model positions it to benefit from digital transformation trends, potentially leading to profitability as it leverages its customer base for upselling advanced solutions. Investors should consider ZS for its high-growth potential in 2026, driven by increasing enterprise adoption of zero-trust security frameworks.
SNCR
Synchronoss Technologies Inc is a provider of white-label cloud, messaging, digital and network management solutions that enable its customers to keep subscribers, systems, networks and content in sync. The Synchronoss Personal CloudTM solution is designed to create an engaging and trusted customer experience through ongoing content management and engagement. The Synchronoss Personal CloudTM platform is a secure and scalable, white-label …
Synchronoss Technologies Inc stands out in the Software Development sector by providing essential white-label cloud and network management solutions that enable seamless data synchronization for telecom and digital service providers, enhancing customer engagement in a data-driven world. Its Synchronoss Personal Cloud solution addresses the growing need for trusted, personalized digital experiences, positioning the company as a key enabler of connectivity in an increasingly synced ecosystem.
Synchronoss's profitability is concerning, with a negative profit margin of -5.7% and ROE of -18.9%, indicating challenges in cost management and generating returns on equity, which reflect weak financial health. Despite a revenue growth decline of -2.2%, the Tradestie Score of 53.5 suggests moderate potential for improvement if operational efficiencies are achieved.
By 2026, investors should consider SNCR due to the projected expansion of the global cloud market, where Synchronoss's specialized solutions in messaging and network management could capitalize on rising demand from 5G and IoT adoption. The company's white-label offerings may lead to new partnerships and revenue streams, potentially reversing the current -2.2% growth trend. Additionally, with a Tradestie Score of 53.5, strategic improvements in profitability could position SNCR for a rebound, making it an attractive speculative investment in the evolving software sector.
PRO
Pros Holdings Inc provides software solutions that optimize shopping and selling experiences for both business-to-business and business-to-consumer companies across industry verticals in more than nearly 80 countries. Its PROS Platform is designed to help businesses create, optimize and market available offers and handle orders through both first- and third-party digital channels. The firm generates key revenue form the United States …
Pros Holdings Inc. stands out in the Software Development sector by providing AI-powered solutions that optimize pricing, sales, and marketing for B2B and B2C companies across over 80 countries, enabling businesses to enhance competitiveness and efficiency in a digital-first economy.
Pros Holdings' negative profit margin of -3.3% highlights ongoing challenges in achieving profitability, potentially due to investments in growth and platform development; however, the company's 10.9% revenue growth indicates strong top-line expansion and improving financial health as it scales operations.
Pros Holdings' 10.9% revenue growth reflects its ability to capture market share in the expanding software sector, driven by increasing demand for AI-optimized solutions that could accelerate by 2026 amid global digital transformations. The company's platform, serving diverse industries in over 80 countries, positions it for sustained adoption and revenue gains. Furthermore, with operational improvements potentially addressing the -3.3% profit margin, investors could see enhanced valuation and returns by 2026 as the firm achieves profitability.
ALBT
Avalon Globocare Corp is an intelligent biotech developer and healthcare service provider dedicated to promoting and empowering high-impact, transformative biotechnology, clinical applications, and healthcare facility management. The company has two reportable segments: the real property operating segment, which is the key revenue driver, and the laboratory testing services segment. The company focuses on diagnostic and therapeutic areas like early detection …
Avalon GloboCare matters in the Software Development sector due to its innovative integration of software solutions in biotechnology and healthcare management, such as advanced clinical applications that enhance data analytics and operational efficiency. This positions the company as a key player in developing transformative tech-driven services that bridge biotech and software.
Despite a remarkable revenue growth of 75.9%, indicating strong market expansion, Avalon GloboCare's ROE of -4129.8% reveals severe financial strain from significant losses relative to equity, highlighting challenges in achieving sustainable profitability.
With revenue growth at 75.9%, Avalon GloboCare demonstrates robust potential in expanding its software-enabled biotech solutions, which could lead to market share gains by 2026. The company's Tradestie Score of 52.5 suggests untapped upside, as improving operational efficiencies might drive profitability and stock appreciation. Investors may benefit from this high-growth trajectory in the evolving healthcare tech landscape, positioning ALBT for potential recovery and value creation in 2026.
RGTI
Rigetti Computing Inc is engaged in the business of full-stack quantum computing. The company offers full-stack quantum computing platform as a cloud service to a wide range of end-users, directly through its Rigetti QCS platform, and also through cloud service providers. Its proprietary quantum-classical infrastructure provides ultra-low latency integration with public and private clouds for high-performance practical quantum computing. The …
Rigetti Computing matters in the Software Development sector as it leads in full-stack quantum computing, offering cloud-based platforms that enable complex computations beyond traditional software capabilities, such as in AI and cryptography. This positions the company at the forefront of emerging technologies, potentially transforming industries reliant on high-performance computing.
Rigetti's profitability is weak, evidenced by a Return on Equity (ROE) of -141.9%, which indicates substantial losses and inefficient use of shareholder equity. The negative revenue growth of -18.1% further highlights financial strain, suggesting the company is struggling to expand sales and maintain stability without significant operational improvements.
By 2026, investors should consider RGTI due to the projected growth in quantum computing, where Rigetti's cloud platform could capitalize on increasing demand for advanced processing, potentially reversing the current -18.1% revenue decline. The Tradestie Score of 51.4/100 reflects moderate upside potential, and as quantum technology advances, partnerships and broader adoption may drive stock appreciation. Additionally, sector-wide investments in quantum infrastructure could enhance Rigetti's market position, making it a speculative opportunity in high-tech innovation.
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.