The software market is growing, with more businesses embracing digital transformation and rapid cloud migration. Businesses are spending billions of dollars on software upgrades to improve their business processes. And most industries worldwide…
from manufacturing to transportation and healthcare—are now dependent on solutions and services offered by software companies.
The global software market is expected to reach $823.71 billion by 2026, registering a 7.2% CAGR. And investors’ interest in the software industry is evident in the iShares Expanded Tech-Software Sector ETF’s (IGV) 28.6% returns over the past year.
Hence, we think it could be worth watching low-priced software stocks Rackspace Technology, Inc. (RXT – Get Rating), ON24, Inc. (ONTF – Get Rating), and BM Technologies, Inc. (BMTX – Get Rating). Wall Street analysts expect them to rally by more than 50% in price in the near term.
Click here to check out our Software Industry Report for 2021
Rackspace Technology, Inc. (RXT – Get Rating)
RXT is a multi-cloud technology services company that is based in San Antonio, Tex. It designs, builds, and manages solutions across applications, data, and security. The company operates through Multicloud Services and Apps & Cross-Platform segments. Its segments offer cloud-native applications and managed applications and enables applications to run on a public cloud built on open-source technology, and many other services.
This month, RXT launched Rackspace Elastic Engineering for VMware. VMware should provide many advantages for organizations adopting a multi-cloud strategy. With these latest Elastic Engineering solutions, customers can access the exact solutions they need and help them to navigate beyond the data center.
RXT’s revenue for the third quarter, ended September 30, 2021, increased 11.9% year-over-year to $762.5 million. The company’s gross profit came in at $231.7 million. Its loss from operations decreased 80.3% from its year-ago value to $2.9 million. Also, the company’s net loss declined 65.6% from the prior-year quarter to $34.8 million.
RXT’s revenue increased 11% year-over-year to $3 billion in its fiscal year 2021. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. Its EPS is expected to grow 16.9% in the current year. The stock has surged 13.1% in price over the past three months.
Closing the last trading session at $15.22, the average analyst price target of $23.8 represents a 56.4% potential upside.
Click here to check out our Cloud Computing Industry Report for 2021
ON24, Inc. (ONTF – Get Rating)
Incorporated in 1998, San Francisco-based ONTF is a cloud-based platform that enables businesses to convert customer engagement into revenue through interactive webinars, virtual events, and multimedia content experiences worldwide. The company’s product range includes ON24 Webcast Elite, ON24 Engagement Hub, ON24 Intelligence, and other platforms.
This month, ONTF integrated with HubSpot, a CRM platform for scaling companies, and got listed in the HubSpot App Marketplace. This integration should provide greater visibility into prospect and customer engagement. Also…
Continue reading at STOCKNEWS.com