Software stocks continue to outperform the broader market so far this year as recurring subscription fees and cloud-based applications underpin earnings growth. The reliance on remote working throughout the coronavirus pandemic has provided steady demand for Software-as-a-Service (Saas) solutions that allow companies and employees to communicate seamlessly through voice, chat, email, and web applications. Moreover, this trend looks like it will be continuing, given the resurgence of COVID-19 infections across many parts of the world in recent weeks.
Additionally, the group stands to benefit from a need for security software amid a growing number of hacking incidents and cyber-attacks targeting individuals and corporations. Market research portal Statista expects the global cybersecurity market to reach $248 billion in 2023, up from $184 billion in 2020.
Below, we take a more detailed look at three leading software stocks and explore several trading ideas using technical analysis.
F5 Networks, Inc. (FFIV)
Seattle-based F5 Networks, Inc. (FFIV) sells multi-cloud software products for networking traffic, security, and policy management. Morgan Stanley analyst Meta…
