Top 3 software/application industry stocks to consider

The software/application industry is a major contributor to the technology sector, with several US-based public companies operating in this space. Among the largest-cap companies in this industry, we used Finviz and have identified 13 of the biggest market cap, public companies, within the US software/application industry, for a quick valuation analysis.

To help readers with their valuation analysis, we recommend focusing on three companies:

1. Salesforce, Inc. (CRM): With a market capitalization Market Capitalization Market Capitalization or market cap represents the market value of a specific asset’s outstanding publicly traded shares. A market cap is used as an important indicator of public opinion of a company’s net worth and is used to calculate certain forms of stock valuation. In its simplest form, Market Cap = N x P where N is the number of outstanding shares and P reflects the closing price per share of a given company stock. Of note, market cap measures only the equity value of a company. Other fact Market Capitalization or market cap represents the market value of a specific asset’s outstanding publicly traded shares. A market cap is used as an important indicator of public opinion of a company’s net worth and is used to calculate certain forms of stock valuation. In its simplest form, Market Cap = N x P where N is the number of outstanding shares and P reflects the closing price per share of a given company stock. Of note, market cap measures only the equity value of a company. Other fact Read this Term of $183.11 billion, Salesforce is the largest-cap company on our list. Its high P/E ratio of 888.11 indicates strong investor confidence in the company's future earnings Earnings A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price A company’s earnings represent its profits or net benefits as a result of its operation.Earnings are the net benefits of a corporation's operation. Earnings can be calculated as EBIT, i.e. earnings before interest and taxes, and EBITDA, i.e. earnings before interest, taxes, depreciation, and amortization.Earnings are valuable tools for investors of company shares as they can often highlight a company’s financial standing and performance. Better performances can result in strengthened share price Read this Term growth potential. Additionally, Salesforce is expected to report positive earnings per share (EPS) in the next quarter, suggesting potential short-term upside.

2. Intuit Inc. (INTU): Intuit has a market capitalization of $114.56 billion and a P/E ratio of 61.18. The company pays a dividend of 3.12%, providing a steady income stream for investors. Moreover, Intuit has consistently reported positive earnings growth in recent years, which bodes well for the company's long-term potential.

3. Cadence Design Systems, Inc. (CDNS): Cadence Design Systems is a smaller-cap company on our list, with a market capitalization of $53.33 billion. However, its P/E ratio of 64.56 suggests strong growth potential. Additionally, Cadence Design Systems has been reporting positive EPS growth in recent years, which is a sign of a company with solid fundamentals.

Readers should keep in mind that this is not an exhaustive list of companies in the software/application industry, and additional fundamental and valuation research should be conducted before making any investment decisions. Investors should also consider their own risk tolerance and investment goals before making any investment decisions.

Now for the effective technical analysis tip for CRM, INTU and CDNS (when to buy): Watch the video

In summary, among the largest-cap US-based public companies in the software/application industry, Salesforce, Intuit, and Cadence Design Systems appear to be the top three companies to consider for further analysis. Should you like any of them, take a minute to watch the simple and effective technical tip for each of those 3 stocks, so you can probably get a better entry price.

We encourage investors to conduct their own research and analysis before making any investment decisions. We also encourage them to visit ForexLive.com for additional views.