6 Software Stocks to Program Into Your Portfolio

by Portfolio Grader | April 26, 2012 10:30 am

Software is increasingly becoming a part of our lives, whether it’s the programs that help your business or run your favorite video games or just operate behind the scenes while you do seemingly everyday tasks like type an email or surf the web on your laptop or smartphone.

I watch more than 5,000 publicly traded companies with my Portfolio Grader[1] tool, ranking companies by a number of fundamental and quantitative measures. And this week, Ive found six software stocks to buy.

Each one of these stocks gets an “A” or “B” according to my research, meaning it is a “strong buy” or “buy.”

Microsoft (NYSE:MSFT[2]) is the software company famous for developing Windows. In the last 12 months, MSFT stock has posted a gain of 25%, compared to a gain of 5% for the Dow Jones in the same time period. MSFT stock gets a “B” grade for the magnitude in which earnings projections have increased over the past months, a “B” grade for cash flow and an “A” grade for return on equity. For more information, view my complete analysis of MSFT stock[3].

Check Point Software (NASDAQ:CHKP[4]) develops technologies to secure communications and transactions over the Internet. In the last year, CHKP is up 12%. CHKP stock gets a “B” grade for earnings growth, a “B” grade for cash flow and a “B” grade for return on equity. For more information, view my complete analysis of CHKP stock[5].

VMware (NYSE:VMW[6]) provides its customers with virtualization-based cloud infrastructure solutions and has reported a gain of 28%, year-to-date. VMW stock gets a “B” grade for sales growth, an “A” grade for return on equity, an “A” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, an “A” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for return on equity. For more information, view my complete analysis of VMW stock[7].

Activision Blizzard (NASDAQ:ATVI[8]) is a well-known videogame producer. Since this time last April, ATVI stock has climbed 12%. ATVI stock gets an “A” grade for operating margin growth, a “B” grade for earnings momentum, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months and an “A” grade for cash flow. For more information, view my complete analysis of ATVI stock.[9]

CA (NASDAQ:CA[10]) is an IT management software and solutions company that has posted a 31% gain since the start of 2012. Ca stock gets a “B” grade for operating margin growth, a “B” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street, a “B” grade for the magnitude in which earnings projections have increased over the past months, an “A” grade for cash flow and a “B” grade for return on equity in my Portfolio Grader tool. For more information, view my complete analysis of CA stock[11].

Red Hat (NYSE:RHT[12]) provides its customers with open source software solutions. RHT stock has jumped 43% in 2012. RHT stock gets a “B” grade for sales growth, a “B” grade for return on equity, a “B” grade for earnings growth, a “B” grade for its ability to exceed the consensus earnings estimates on Wall Street and a “B” grade for the magnitude in which earnings projections have increased over the past months in my Portfolio Grader tool. For more information, view my complete analysis of RHT stock[13].

Get more analysis of these picks and other publicly-traded stocks with Louis Navellier’s Portfolio Grader[14] tool, a 100% free stock-rating tool that measures both quantitative buying pressure and eight fundamental factors.

 

Endnotes:

  1. Portfolio Grader: https://navelliergrowth.investorplace.com/portfolio-grader/
  2. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  3. For more information, view my complete analysis of MSFT stock: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=msft&submit=submit&type=site
  4. CHKP: http://studio-5.financialcontent.com/investplace/quote?Symbol=CHKP
  5. For more information, view my complete analysis of CHKP stock: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=chkp&submit=submit&type=site
  6. VMW: http://studio-5.financialcontent.com/investplace/quote?Symbol=VMW
  7. For more information, view my complete analysis of VMW stock: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=vmw&submit=submit&type=site
  8. ATVI: http://studio-5.financialcontent.com/investplace/quote?Symbol=ATVI
  9. For more information, view my complete analysis of ATVI stock.: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=atvi&submit=submit&type=site
  10. CA: http://studio-5.financialcontent.com/investplace/quote?Symbol=CA
  11. For more information, view my complete analysis of CA stock: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=ca&submit=submit&type=site
  12. RHT: http://studio-5.financialcontent.com/investplace/quote?Symbol=RHT
  13. For more information, view my complete analysis of RHT stock: https://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=rht&submit=submit&type=site
  14. Portfolio Grader: https://navelliergrowth.investorplace.com/portfolio-grader/

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