2 Top Software Stocks to Buy for the Long Haul
Investors in 2022 have suffered through one of the worst starts to the year in the market's history. The S&P 500 index is currently down 18% year to date. While it's very difficult to predict short-term market movements, it's much easier to identify which companies are positioned to deliver compounding returns over many years.
Software stocks have been hit hard this year, but the lower stock prices are giving investors a great opportunity to scoop up the best of the best at lower valuations. Salesforce (NYSE: CRM) and Microsoft (NASDAQ: MSFT) generate consistent revenue growth through their software-as-a-service business strategies, and these leaders generate a high free cash flow margin, which adds to their long-term value to investors. Here's why now is the time to consider adding these stocks to your portfolio.
Salesforce has become an indispensable software provider for over 150,000 companies. It's the leading customer relationship management platform, serving a growing addressable market worth about $200 billion. The best part is that investors can buy shares at their cheapest valuation since the 2008 market crash. There are a few qualities about Salesforce that suggest the market is undervaluing the stock right now.
Source Fool.com
