Stocks to buy

The Top 3 Software Stocks to Buy in March 2024

Thanks to the explosive interest in artificial intelligence, the talking point about top software stocks to buy has likewise skyrocketed. Nevertheless, there are other specialties and they offer much relevance to the broader technology narrative.

For example, we often hear about the accelerated productivity promises of AI. But what about the nefarious uses? If AI can help people develop programs for accretive pursuits, certainly, they can be exploited to develop destructive programs. Therefore, cybersecurity enterprises should theoretically benefit.

As well, Americans have racked up an astonishing level of debt. That may be an indication that the country needs financial guidance, an area that could benefit niche players in the educational application category. Indeed, the ecosystem is bigger than just AI, making the below top software stocks to buy enticing.

Check Point Software (CHKP)

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As a multinational software provider, Check Point Software (NASDAQ:CHKP) specializes in cybersecurity. Its umbrella services include network, endpoint, cloud, mobile and data security. Yes, AI may very well be a gamechanger – once the kinks are worked out – for productivity. However, digital intelligence can also be used to spread harm online.

Essentially, the main problem is that AI lowers the barrier for novice cybercriminals. So, the productivity angle is a double-edged sword. Yes, AI may accelerate work – but we’re kinda hoping that said work is positive in nature. We can’t trust that will always be the case; hence, we need enterprises like Check Point more than ever.

Financially, the narrative is compelling. Analysts anticipate 2024 revenue will land at $2.56 billion, up nearly 6% from last year’s tally. In 2025, the top line may reach $2.69 billion, implying over 5% growth from 2024’s projected revenue.

Lastly, covering experts rate shares a consensus moderate buy. Also, the average price target hits $171.80, implying over 8% upside potential. It has the potential to be one of the top software stocks to buy.

NerdWallet (NRDS)

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A personal finance company, NerdWallet (NASDAQ:NRDS) provides a platform to enable users to make smarter financial decisions. Fundamentally, you couldn’t ask for much more of a relevant concept for everyday Americans. Last year, our collective credit card debt topped the $1 trillion milestone. It’s only getting worse. A decade ago, combined plastic balances were only $680 billion.

I don’t want to make too many assumptions but it seems people could use some financial advice. Indeed, NerdWallet is going to be even more relevant following the surge in meme stocks and cryptocurrencies. Yes, participating in the market can lead to wealth creation. But doing so without a proper education in the process can lead to disastrous results.

Analysts believe that by the end of the current fiscal year, sales will be $621.66 million. If so, that would be up 3.7% from last year’s haul. Also, 2025 sales could reach $693.58 million, up 11.6% from last year’s projected revenue.

I believe these figures simply because of the great need. In my opinion, NRDS is one of the top software stocks to buy.

Microsoft (MSFT)

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As one of the top investors in OpenAI – the creator of the ChatGPT generative AI chatbot – Microsoft (NASDAQ:MSFT) is no stranger to digital intelligence. Since the start of the year, MSFT stock gained more than 10% of equity value. Over the past year, the once formerly boring enterprise has printed a return of over 61%. That’s largely – perhaps mostly – because of AI.

However, I also like MSFT for reasons not directly related to digital intelligence. In particular, Microsoft’s Office 365 suite of programs – offered as a monthly subscription service – should see increased demand. Fundamentally, the business world effectively runs on Microsoft. For example, when you think about spreadsheets, you’re thinking about Excel.

Moving forward, the burgeoning gig economy should help accelerate the company’s software services revenue. Technically, as a member of the gig economy, I’d be lost without Microsoft – it’s my lifeblood. There are other platforms. In my humble, non-confrontational opinion, they all suck.

Finally, analysts rate MSFT a consensus strong buy with a $469.34 price target, implying almost 15% upside. That makes it one of the top software stocks to buy in March.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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