16 Software Stocks That Might Be Bargains for Investors

The software sector has lagged far behind the broader market in 2025 — while the S&P 500 is up 16.5%, the software‑focused iShares Expanded Tech Software ETF has gained only about 4%. That weakness has caught the attention of analysts at Baird, who say several software companies may now be undervalued and worth a look. Among the names singled out: Axon Enterprise — maker of both law‑enforcement hardware and software — is down 10% this year but still offers over 30% growth potential and healthy profit margins. Other picks: Zoom Communications and Twilio, trading at low free‑cash‑flow multiples, could rebound if momentum returns in 2026. In cybersecurity, Baird highlights large‑cap names like Zscaler and Palo Alto Networks, along with smaller firms such as Rubrik and Okta — all now trading at more conservative valuations relative to their future sales expectations. Beyond SaaS and security, the firm sees value in vertical‑market software companies whose revenue estimates are rising. Among them: Autodesk (design/manufacturing software), Q2 Holdings (fintech software), Procore Technologies (construction‑industry software), and Veeva Systems (health‑care software). These firms may offer attractive risk‑reward dynamics if their industries rebound. #softwarestocks #buyingopportunity #investingideas #techsector #SlimScan #GrowthStocks #CANSLIM