3 Software Stocks that Wall Street Analysts Love

NASDAQ: APPS | Digital Turbine, Inc. News, Ratings, and Charts

APPS – As more and more people work from home, the demand for software grows. This has had a positive impact on software stock performance. Here are three software stocks that analysts love: Digital Turbine (APPS), Sprout Social (SPT), and PAR Technology Corp (PAR).

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

The demand for software products and services has been steadily rising due to remote working, remote learning, and increasing digitization of business processes. The future of software companies also looks bright thanks to increasing development in cloud computing, artificial intelligence, and big data. The majority of software companies have reported significantly positive results during this earnings season.

The software industry’s ability to capitalize on the pandemic-driven changes have been reflected in the stock market. The iShares Expanded Tech-Software Sector ETF (IGV) has gained more than 28% year-to-date while the S&P 500 has posted returns of just 5% over the same time period.

With the huge proliferation of software stocks in the market, it can be difficult to choose the right stocks with the most potential. Three software stocks that Wall Street analysts recommend buying are Digital Turbine (APPS), Sprout Social, Inc. (SPT), and PAR Technology Corporation  (PAR).

Digital Turbine, Inc. (APPS)

APPS is a mobile-ad company that focuses on delivery, tracking, recommendation, and simplification of mobile advertising. It also helps mobile apps with content development and delivers billing technology.

The company is now looking to expand into the OTT market and is anticipating a launch of the software product across all major US operators such as AT&T (T), Verizon (VZ), and T-Mobile. Branching into the OTT space could be a driver of solid long-term growth for APPS.

The ratings consensus for APP according to Wall Street analysts is a Strong Buy.

The company delivered stellar results for the quarter ending June 30th. It reported net revenues of approximately $59 million as compared to $30 million during the same period last year. This indicates a nearly 100% rise year-over-year.

APPS’s earnings surprise history is impressive as well with the stock meeting or beating consensus EPS estimates in each of the trailing four quarters.

APPS stock has also been performing extremely well in the “new normal,” and it has added close to 273% to its stock price since this year’s low of $3.5 on March 18th.

How does APPS stack up for the POWR Ratings?

A for Trade Grade

A for Buy & Hold Grade

A for Peer Grade

A for Industry Rank

A for Overall POWR Rating

You can’t ask for better. The stock is also ranked #16 out of 84 stocks in the Software – Application industry.

Sprout Social, Inc. (SPT)

SPT delivers social media management tools for enterprise customers. Its offerings include lead generation, analytics, contact management, and communication tools. The company went public in December of last year. It is one of the first publicly-traded social media management companies.

With social media being one of the most effective and cost-efficient marketing tools in the market today, the future of SPT looks bright.

Wall Street analysts have a rating of Strong Buy for the stock. The average price target of the stock is $35.14, which is 9.2% higher than its current price.

The company’s total revenue was up 27% for the quarter ending June 30th, compared to the same period last year. The company has beaten the street EPS estimates in all three trailing quarters.

The stock has gained more than 100% so far this year, and we may witness further rise as the company starts making profits.

PAR Technology Corporation (PAR)

PAR focuses on delivering technology solutions to enterprises in the global hospitality sector. It offers both hardware and software services which help restaurants and retail markets with their point-of-sale operations.

The company has recently partnered with Tillster’s digital ordering platform in order to offer integrated online and mobile ordering capabilities. PAR has also partnered with Shogo, a cloud-based accounting system provider, to further boost the capabilities of its Brink POS platform. These partnerships have the potential to drive growth for the company as the value of its services increase.

Wall Street analysts are highly optimistic about this stock with a consensus rating of Strong Buy. The average price target for the stock is $39.8, which is 14.1% higher than its current price.

PAR’s stock has recovered around 225% from its year-to-date low in mid-March. The company’s strong recovery could be part of momentum that could last for the rest of 2020.

It’s no surprise that PAR is rated a Strong Buy in our POWR Ratings system. It also has a grade of A for Trade Grade, Buy & Hold Grade, and Peer Grade. In the 49-stock Technology – Services industry, it is ranked #4.

Want More Great Investing Ideas?

The Best of StockNews

2 Step Process to Sell @ Market Top in September

9 “BUY THE DIP” Growth Stocks for 2020


APPS shares rose $0.26 (+0.94%) in after-hours trading Wednesday. Year-to-date, APPS has gained 289.06%, versus a 5.84% rise in the benchmark S&P 500 index during the same period.


About the Author: Aaryaman Aashind


Aaryaman is an accomplished journalist that’s passionate about providing in-depth insights about investing and personal finance. Recently he has been focused on the stock market and he specializes in evaluating high-growth stocks. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
APPSGet RatingGet RatingGet Rating
SPTGet RatingGet RatingGet Rating
PARGet RatingGet RatingGet Rating
IGVGet RatingGet RatingGet Rating
TGet RatingGet RatingGet Rating

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!


Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Why is the Stock Market Tanking Now?

Stocks (SPY) are tumbling lower the past week. Some point to the spike in the Coronavirus as the main cause. Others talk about the lack of a stimulus deal behind this move. But perhaps it is something else entirely. Get the full story here…

:  |  News, Ratings, and Charts

2021 Stock Market Outlook: Upside & Pitfalls

Get Steve Reitmeister’s game plan to outperform the market (SPY) in year to come. He will also share his unique “Formula for 2021 Success” which includes examples of how this indicator led to big gains in ETSY and NVDA in 2020. Read on for more...

:  |  News, Ratings, and Charts

Forget Tesla, Buy These 3 Stocks to Profit from the Electric Vehicle Revolution

As Tesla (TSLA), and now NIO (NIO), get all the headlines in the EV industry, they may not be the best stocks to buy right now due to sky high valuations. Another way to profit from this red hot industry is through stocks of companies that make parts used in the manufacturing of EVs. Here are three great stocks that should see strong growth as the industry grows: Aptiv PLC (APTV), Cree, Inc (CREE), and Analog Devices (ADI).

:  |  News, Ratings, and Charts

3 Stocks That Could Make New Highs in November

The market is poised to be highly volatile in the coming weeks due to rising COVID-19 infections as we near the presidential election. So it might be a good idea to consider stocks based on strong financials and recent analyst upgrades. Workday, Inc. (WDAY), Whirlpool Corporation (WHR), and PulteGroup, Inc. (PHM) are three such stocks that could hit new highs in the near future.

:  |  News, Ratings, and Charts

Forget Tesla, Buy These 3 Stocks to Profit from the Electric Vehicle Revolution

As Tesla (TSLA), and now NIO (NIO), get all the headlines in the EV industry, they may not be the best stocks to buy right now due to sky high valuations. Another way to profit from this red hot industry is through stocks of companies that make parts used in the manufacturing of EVs. Here are three great stocks that should see strong growth as the industry grows: Aptiv PLC (APTV), Cree, Inc (CREE), and Analog Devices (ADI).

Read More Stories

More Digital Turbine, Inc. (APPS) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All APPS News