The software/application industry is a major contributor to the technology sector, with several US-based public companies operating in this space. Among the largest-cap companies in this industry, we used Finviz and have identified 13 of the biggest market cap, public companies, within the US software/application industry, for a quick valuation analysis.
To help readers with their valuation analysis, we recommend focusing on three companies:
Salesforce, Inc. (CRM): With a market capitalization of $183.11 billion, Salesforce is the largest-cap company on our list. Its high P/E ratio of 888.11 indicates strong investor confidence in the company's future earnings growth potential. Additionally, Salesforce is expected to report positive earnings per share (EPS) in the next quarter, suggesting potential short-term upside.
Intuit Inc. (INTU): Intuit has a market capitalization of $114.56 billion and a P/E ratio of 61.18. The company pays a dividend of 3.12%, providing a steady income stream for investors. Moreover, Intuit has consistently reported positive earnings growth in recent years, which bodes well for the company's long-term potential.
Cadence Design Systems, Inc. (CDNS): Cadence Design Systems is a smaller-cap company on our list, with a market capitalization of $53.33 billion. However, its P/E ratio of 64.56 suggests strong growth potential. Additionally, Cadence Design Systems has been reporting positive EPS growth in recent years, which is a sign of a company with solid fundamentals.
Readers should keep in mind that this is not an exhaustive list of companies in the software/application industry, and additional fundamental and valuation research should be conducted before making any investment decisions. Investors should also consider their own risk tolerance and investment goals before making any investment decisions.
Now for the effective technical analysis tip for CRM, INTU and CDNS (when to buy): Watch the video
In summary, among the largest-cap US-based public companies in the software/application industry, Salesforce, Intuit, and Cadence Design Systems appear to be the top three companies to consider for further analysis. Should you like any of them, take a minute to watch the simple and effective technical tip for each of those 3 stocks, so you can probably get a better entry price.
We encourage investors to conduct their own research and analysis before making any investment decisions. We also encourage them to visit ForexLive.com for additional views.