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Top 3 software companies to buy in 2022

The IT services market is expected to grow by a CAGR rate of more than 10% by 2026. What are the companies well-positioned to make the most of this trend?

IT services expanded in the last years and it is forecast to grow in the years ahead at a CAGR rate bigger than 10%. Cloud services, for example, gained traction due to the emergence of the cloud-based platform, but new advancements in the industry guarantee its expansion in the years ahead.

Ahead of the new trading year, here are the best software companies to buy in 2022: Salesforce, Informatica, and CrowdStrike.

Salesforce

Salesforce is an IT company from San Francisco, California. It develops enterprise cloud computing solutions and it focuses on customer relationship management.

The stock price is up over 16% this year and peaked above $300. While Salesforce does not pay a dividend, it is operating with a gross profit margin of 74.02%, much higher than the sector median by about 50%.

Most of the analysts are bullish about Salesforce’s stock price. Out of the 95 analysts covering the stock, 28 have neutral ratings and 4 have sell ratings. The rest of 63 analysts have buy ratings.

Informatica

Informatica is a new player in the IT sector based in Redwood City, California. It connects and manages data across multi-cloud systems and it was founded in 2021.

Just like Salesforce, the company operates with a gross profit margin much higher than the sector median – 83.08% vs. 49.42%. At the current market price, the company’s market capitalization is $9.8 billion and the enterprise value is$12.19 billion.

CrowdStrike

CrowdStrike is an IT company from Sunnyvale, California. It provides cloud solutions locally and internationally and it was founded a decade ago.

The company operates with a gross profit margin of 73.76%, much higher than the sector median of 49.42%. Moreover, revenue growth (YoY) exceeds by far the sector median – 68.79% vs. 16.50% sector median. In other words, CrowdStrike managed to increase its revenues more than three times faster than its peers.

The stock price, however, did not go anywhere this year, trading sideways and currently sitting at -1.03% YTD.

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