From commerce to culture, software is digitizing every aspect of our lives. This secular theme makes SaaS companies attractive investment candidates but also comes with higher valuations that cause volatility. Unfortunately, the rich prices have haunted them over the past six months as the industry has shed 12.4%. This performance is a far cry from the S&P 500’s 13.3% ascent.
However, some businesses can support their premium valuations with superior earnings growth, and our mission at StockStory is to help you find them. Keeping that in mind, here are three software stocks boasting durable advantages.
CrowdStrike (CRWD)
Market Cap: $151.2 billion
Known for detecting the massive SolarWinds hack in 2020 that compromised numerous government agencies, CrowdStrike (NASDAQ: CRWD) provides cloud-based cybersecurity solutions that protect endpoints, cloud workloads, identity, and data through its Falcon platform.
Why Is CRWD a Top Pick?
- Billings growth has averaged 26% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Projected revenue growth of 22.8% for the next 12 months suggests its momentum from the last two years will persist
- Software platform has product-market fit given the rapid recovery of its customer acquisition costs
CrowdStrike is trading at $592.05 per share, or 25.3x forward price-to-sales. Is now the time to initiate a position? Find out in our full research report, it’s free.
Flywire (FLYW)
Market Cap: $1.98 billion
Initially created to solve the challenges of international student tuition payments, Flywire (NASDAQ: FLYW) provides specialized payment processing and software solutions that help educational institutions, healthcare systems, travel companies, and businesses manage complex payments.
Why Do We Like FLYW?
- Average billings growth of 36.5% over the last year enhances its liquidity and shows there is steady demand for its products
- Efficient business processes manifest in an operating margin of 5%, higher than most software companies, and it boosted its profits by achieving some fixed cost leverage
- Free cash flow margin of 23% is higher than many in the industry, giving it breathing room and optionality
Flywire’s stock price of $16.00 implies a valuation ratio of 2.7x forward price-to-sales. Is now the right time to buy? See for yourself in our full research report, it’s free.
Braze (BRZE)
Market Cap: $2.37 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 Positive On BRZE?
- Billings growth has averaged 28% over the last year, indicating a healthy pipeline of new contracts that should drive future revenue increases
- Estimated revenue growth of 20.3% for the next 12 months implies its momentum over the last two years will continue
At $20.30 per share, Braze trades at 2.4x forward price-to-sales. Is now a good time to buy? Find out in our full research report, it’s free.
Stocks We Like Even More
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
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 Kadant (+351% five-year return). Find your next big winner with StockStory today.
