Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital. But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 19.8% over the last six months. This drawdown is a far cry from the S&P 500’s 6.7% ascent.
Investors should tread carefully as only some businesses are worthy of their valuations, and luckily for you, we started StockStory to help you find them. With that said, here are two resilient software stocks at the top of our wish list and one we’re steering clear of.
One Software Stock to Sell:
Asure Software (ASUR)
Market Cap: $211.7 million
Operating in the often-overlooked smaller metropolitan markets where HR expertise can be scarce, Asure Software (NASDAQ: ASUR) provides cloud-based human capital management software and services that help small and medium-sized businesses manage payroll, taxes, time tracking, and HR compliance.
Why Should You Dump ASUR?
- 4% annual revenue growth over the last two years was slower than its software peers
- Operating margin was unchanged over the last year, suggesting it failed to gain leverage on its fixed costs
- Ability to fund investments or reward shareholders with increased buybacks or dividends is restricted by its weak free cash flow margin of 5.5% for the last year
Asure Software’s stock price of $7.57 implies a valuation ratio of 1.3x forward price-to-sales. If you’re considering ASUR for your portfolio, see our FREE research report to learn more.
Two Software Stocks to Watch:
Shopify (SHOP)
Market Cap: $158.6 billion
Starting with just three people selling snowboards online in 2004, Shopify (NYSE: SHOP) provides a comprehensive platform that enables merchants of all sizes to create, manage and grow their businesses across multiple sales channels.
Why Will SHOP Beat the Market?
- Winning new contracts that can potentially increase in value as its billings growth has averaged 30.7% over the last year
- Revenue outlook for the upcoming 12 months is outstanding and shows it’s on track to gain market share
- Fast payback periods on sales and marketing expenses allow the company to invest heavily and onboard many customers concurrently
At $122.15 per share, Shopify trades at 10.1x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Braze (BRZE)
Market Cap: $1.94 billion
With its technology powering interactions with 6.2 billion monthly active users across the digital landscape, Braze (NASDAQ: BRZE) provides a platform that helps brands build and maintain direct relationships with their customers through personalized, cross-channel messaging and engagement.
Why Are We Fans of BRZE?
- Impressive 25.6% annual revenue growth over the last two years indicates it’s winning market share
- Billings growth has averaged 22.4% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Forecasted revenue growth of 19.2% for the next 12 months indicates its momentum over the last two years is sustainable
Braze is trading at $17.26 per share, or 2.2x forward price-to-sales. Is now the right time to buy? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
