Software is eating the world, and virtually no business is left untouched by it. The undeniable tailwinds fueling SaaS companies have led to lofty valuation multiples historically, but rich prices also make re-ratings harder and place a ceiling on returns - over the past six months, the industry’s 2.3% gain has lagged the S&P 500 by 9 percentage points.
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 best left ignored.
One Software Stock to Sell:
Manhattan Associates (MANH)
Market Cap: $12.69 billion
Built on a "versionless" cloud architecture that delivers quarterly updates to all customers, Manhattan Associates (NASDAQ: MANH) develops cloud-based software that helps retailers, wholesalers, and manufacturers manage their supply chains, inventory, and omnichannel operations.
Why Are We Wary of MANH?
- Products, pricing, or go-to-market strategy may need some adjustments as its 5.7% average billings growth over the last year was weak
- Estimated sales growth of 4.1% for the next 12 months implies demand will slow from its three-year trend
- Sky-high servicing costs result in an inferior gross margin of 56.3% that must be offset through increased usage
Manhattan Associates is trading at $209.86 per share, or 11.6x forward price-to-sales. Read our free research report to see why you should think twice about including MANH in your portfolio.
Two Software Stocks to Watch:
HubSpot (HUBS)
Market Cap: $24.47 billion
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE: HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
Why Could HUBS Be a Winner?
- Billings growth has averaged 21.3% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Projected revenue growth of 16.9% for the next 12 months suggests its momentum from the last three years will persist
- Superior software functionality and low servicing costs result in a top-tier gross margin of 84.6%
HubSpot’s stock price of $465.01 implies a valuation ratio of 7.3x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Intuit (INTU)
Market Cap: $186.3 billion
Originally named after its founding product "Intuitive for the first-time user," Intuit (NASDAQ: INTU) provides financial management software and services including TurboTax, QuickBooks, Credit Karma, and Mailchimp to help consumers and small businesses manage their finances.
Why Does INTU Stand Out?
- Average billings growth of 17.5% over the last year enhances its liquidity and shows there is steady demand for its products
- Well-designed software integrates seamlessly with other workflows, enabling swift payback periods on marketing expenses and customer growth at scale
- INTU is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders
At $674.70 per share, Intuit trades at 8.9x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
High-Quality Stocks for All Market Conditions
When Trump unveiled his aggressive tariff plan in April 2025, markets tanked as investors feared a full-blown trade war. But those who panicked and sold missed the subsequent rebound that’s already erased most losses.
Don’t let fear keep you from great opportunities and take a look at Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
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