The 3 Most Undervalued Software Stocks to Buy in May 2024

The 3 Most Undervalued Software Stocks to Buy in May 2024

 

U.S. software stocks are largely trading at frothy multiples

 

In a space of expensive multiples, these 3 companies are some of the most undervalued.

PayPal (PYPL): A plan to reinvigorate is branded checkout business could boost growth and valuation.

Alphabet (GOOG, GOOGL): The tech giant is proving it can manage costs while investing into growth sectors.

Trimble (TRMB): The construction and infrastructure sectors are rife with digital transformation opportunities.

2024년 5월에 매수해야 할 가장 저평가된 소프트웨어 주식 3개

미국 소프트웨어 주식은 거품이 많은 배수로 거래되고 있습니다.

고가의 배수 공간에서 이 3개 회사는 가장 저평가된 회사 중 하나입니다.
PayPal(PYPL): 브랜드 체크아웃 사업을 활성화하려는 계획은 성장과 가치 평가를 높일 수 있습니다.
알파벳(GOOG, GOOGL): 이 거대 기술 기업은 성장 부문에 투자하면서 비용을 관리할 수 있음을 입증하고 있습니다.
Trimble(TRMB): 건설 및 인프라 부문에는 디지털 혁신 기회가 풍부합니다.

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U.S. equities, especially undervalued software stocks, appear to be in rally mode. As of the end of Wednesday’s trading session, the tech-heavy Nasdaq Composite has risen 2.37 percentage points in the last month. Meanwhile, its counterpart the S&P500 has appreciated 3.18 percent. This comes after both indices suffered significant losses during the month of April, forcing equities investors and traders to question whether or not U.S. equities would be able to sustain a rally throughout 2024. The macroeconomic environment remains to be a key pain point for the market, and market participants should expect more volatility in the coming weeks.

 

Nevertheless, rising stock prices implies higher valuations. To help investors look for cheaper investments, below is a list of three of the most undervalued software stocks in the space these days.

 

PayPal (PYPL)

 

If you’re giving or receiving payments, PayPal (NASDAQ:PYPL) is already an established name for you. Founded in 1998, the payments platform boasts more than 400 million active accounts and offers a variety of payment services tailored for different kinds of merchants.

 

In early February, PayPal announced its fourth quarter earnings report for fiscal year 2023. The payments platform beat analyst estimates on revenue, earnings per share, and total payments volume. Revenue came in at $8 billion for the quarter and $29.8 billion for the full year. Both of which represent year-over-year growth in the high single digits. GAAP EPS figures for the fourth quarter and full fiscal year were $1.29 per share and $3.84 per share, respectively. PayPal was able to deliver strong earnings growth off the back of various organization costs cuts. Moreover, with PayPal’s Q1 2024 earnings print the company boosted its profit outlook for the year.

 

The payments platform trades at 15.5x forward earnings, and PayPal’s plans to revive its branded checkout business could create secular tailwinds for the business while also providing investors with multiple expansion.

 

Alphabet (GOOG,GOOGL)

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), the parent company of internet giant Google, will be the only tech giant to make this list. The tech firm’s dominance in search is very well-known at this point. However, growth prospects in areas of both cloud computing and artificial intelligence coupled with its relatively low trading multiple make Alphabet one of the undervalued software stocks currently for sale.

 

Despite worries about Google Cloud and is competitive strengths with Amazon’s (NASDAQ:AMZN) AWS and Microsoft’s (NASDAQ:MSFT) Azure, Google’s cloud platform continues to be a robust engine of growth for the software giant. For Alphabet’s fourth quarter earnings report for fiscal year 2023, Google Cloud revenue increased 26% year-over-year. Additionally, in the company’s first quarter earnings print for fiscal year 2024, Google Cloud increased revenues by 18% on a year-over-year basis. Operating income for Google Cloud quadrupled from $191 million in Q1 2023 to $900 million in Q1 2024.

 

The announcement of the software firm’s first dividend also elated investors. As the company continues to grow in cloud and AI, while also keeping costs down, investors should find themselves quite pleased. Alphabet trades at 21.9x forward earnings, which is less than competitors like Apple (NASDAQ:AAPL), Amazon, and Microsoft.

미국 주식, 특히 저평가된 소프트웨어 주식은 랠리 모드에 있는 것으로 보입니다. 수요일 거래 세션이 끝난 현재 기술주 중심의 나스닥 종합 지수는 지난달 2.37% 포인트 상승했습니다. 한편, S&P500 지수는 3.18% 상승했습니다. 이는 두 지수가 4월 한 달 동안 상당한 손실을 입어 주식 투자자와 트레이더가 미국 주식이 2024년 내내 상승세를 유지할 수 있을지 의문을 제기하게 된 이후에 나온 것입니다. 거시 경제 환경은 여전히 시장의 주요 문제점으로 남아 있습니다. 시장 참여자들은 앞으로 몇 주 동안 더 많은 변동성을 예상해야 합니다.

그럼에도 불구하고 주가 상승은 밸류에이션 상승을 의미합니다. 투자자들이 더 저렴한 투자처를 찾는 데 도움이 되도록 요즘 업계에서 가장 저평가된 소프트웨어 주식 세 가지 목록을 아래에 소개합니다.

페이팔(PYPL)

귀하가 지불금을 주고받는 경우 PayPal(NASDAQ:PYPL)이 이미 확립된 이름입니다. 1998년에 설립된 결제 플랫폼은 4억 개 이상의 활성 계정을 자랑하며 다양한 판매자에 맞는 다양한 결제 서비스를 제공합니다.

2월 초, PayPal은 2023 회계연도 4분기 수익 보고서를 발표했습니다. 결제 플랫폼은 수익, 주당 수익, 총 결제량에 대한 분석가의 추정치를 뛰어넘었습니다. 분기 매출은 80억 달러, 연간 매출은 298억 달러를 기록했습니다. 둘 다 높은 한 자릿수로 전년 대비 성장을 나타냅니다. 4분기와 전체 회계연도의 GAAP EPS 수치는 각각 주당 1.29달러와 3.84달러였습니다. PayPal은 다양한 조직 비용 절감에 힘입어 강력한 수익 성장을 이룰 수 있었습니다. 또한 PayPal의 2024년 1분기 실적 발표로 회사는 올해 수익 전망을 높였습니다.

결제 플랫폼은 어닝의15.5배로 거래되며, 브랜드 체크아웃 사업을 부활시키려는 PayPal의 계획은 사업에 세속적인 순풍을 불러일으키는 동시에 투자자들에게 다양한 확장을 제공할 수 있습니다.

알파벳(GOOG,GOOGL)
거대 인터넷 기업 Google의 모회사인 Alphabet(NASDAQ:GOOG, NASDAQ:GOOGL)은 이 목록에 오른 유일한 거대 기술 기업이 될 것입니다. 이 시점에서 기술 회사의 검색 지배력은 매우 잘 알려져 있습니다. 그러나 클라우드 컴퓨팅과 인공 지능 분야의 성장 전망과 상대적으로 낮은 거래 배수로 인해 Alphabet은 현재 판매되고 있는 저평가된 소프트웨어 주식 중 하나가 되었습니다.

Google Cloud에 대한 우려와 Amazon(NASDAQ:AMZN) AWS 및 Microsoft(NASDAQ:MSFT) Azure와의 경쟁 우위에도 불구하고 Google의 클라우드 플랫폼은 계속해서 거대 소프트웨어 기업의 강력한 성장 엔진이 되고 있습니다. Alphabet의 2023회계연도 4분기 수익 보고서에서 Google Cloud 수익은 전년 대비 26% 증가했습니다. 또한 회사의 2024회계연도 1분기 수익 보고서에서 Google Cloud는 전년 대비 수익을 18% 늘렸습니다. Google Cloud의 영업 이익은 2023년 1분기 1억 9,100만 달러에서 2024년 1분기 9억 달러로 4배 증가했습니다.

소프트웨어 회사의 첫 번째 배당금 발표도 투자자들을 열광시켰습니다. 회사가 클라우드와 AI 분야에서 지속적으로 성장하는 동시에 비용을 절감함에 따라 투자자들은 상당히 기뻐할 것입니다. Alphabe은 Apple(NASDAQ:AAPL), Amazon 및 Microsoft와 같은 경쟁사보다 낮은

forward earning의 21.9배로 거래됩니다.

Trimble (TRMB)

 

Trimble (NASDAQ:TRMB) is a software platform working to bring digital transformation to the construction and infrastructure industries. The company’s software helps to with everything from project design and visualization to digital monitoring of equipment and real assets. The infrastructure and construction spaces are some of the most underserved sectors into terms of technology penetration, which makes the opportunity to help digitize these industries immense. Furthermore, the $1 trillion dollar infrastructure bill passed some years ago still has funded ready to be allocated, and this will help to provide secular growth tailwinds for Trimble for years to come.

 

In their recent quarterly earnings report for fiscal year 2024, Trimble was able to beat Wall Street expectations on both revenue and earnings per share. Revenue grew 4% year-over-year to $953.3 million, while annualized recurring revenue ballooned to $2 billion, up 23% on a year-over-year basis.

 

Trimble trades at 19.7x forward earnings, which is not very cheap, but given the opportunity in the space in which Trimble operates, the company’s growth prospects are solid.

트림블(TRMB)

Trimble(NASDAQ:TRMB)은 건설 및 인프라 산업에 디지털 혁신을 가져오기 위해 노력하는 소프트웨어 플랫폼입니다. 이 회사의 소프트웨어는 프로젝트 설계 및 시각화부터 장비 및 실제 자산의 디지털 모니터링에 이르기까지 모든 작업을 지원합니다. 인프라 및 건설 공간은 기술 보급 측면에서 가장 서비스가 부족한 분야 중 하나이므로 이러한 산업을 디지털화하는 데 도움이 되는 기회가 엄청납니다. 더욱이, 몇 년 전에 통과된 1조 달러 규모의 인프라 법안은 여전히 할당될 준비가 되어 있으며 이는 앞으로 몇 년 동안 Trimble의 장기적인 성장을 뒷받침하는 데 도움이 될 것입니다.

최근 2024 회계연도 분기별 수익 보고서에서 Trimble은 수익과 주당 순이익 모두에서 월스트리트의 기대치를 뛰어넘을 수 있었습니다. 수익은 전년 대비 4% 증가한 9억 5330만 달러를 기록했으며, 연간 반복 수익은 전년 대비 23% 증가한 20억 달러로 급증했습니다.

Trimble은forward earning의 19.7배로 거래되는데 이는 그다지 저렴하지는 않지만 Trimble이 운영되는 분야의 기회를 고려할 때 회사의 성장 전망은 견고합니다.

https://investorplace.com/2024/05/the-3-most-undervalued-software-stocks-to-buy-in-may-2024/