These software stocks have the 'best of both worlds,' offering strong growth with solid balance sheets

As the artificial intelligence craze evolves, driving up growth for chipmakers like Broadcom and Nvidia , investors should also consider software companies seeing strong fundamentals despite high interest rates. Canaccord Genuity ran a screen of about 147 software companies, and only four had revenue growth of 25% or more forecast for the next 12 months and at least 50% incremental free-cash flow margins over the trailing 12 months.

com had a trailing incremental FCF margin of 91% and projected revenue growth of 28%. Canaccord cited high non-GAAP gross margins, durable growth and healthy FCF leverage over the trailing 12 months as drivers of Monday's "best-in-class" incremental FCF. The stock today trades at a 9.3 multiple of 2025 enterprise value to revenue and 38 times enterprise value to FCF, Canaccord said, and is higher by 30% in 2024.

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Don't chase new highs, wait for a market pullback, advises Canaccord GenuityA U.S. analyst for the Canadian-based investment bank is cautioning investors to hold off buying right now.
Source: CNBC - 🏆 12. / 72 Read more »

Crypto Spot ETFs Will Have More Influence on Market's Price Action: CanaccordWill Canny is CoinDesk's finance reporter.
Source: CoinDesk - 🏆 291. / 63 Read more »

Stock Trader Answers Stock Market Questions From TwitterFormer Wall Street stock trader Lance Breitstein answers your most asked stock market questions from Twitter.
Source: WIRED - 🏆 555. / 51 Read more »