This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Four Must-See Charts: Software Stocks

The software sector is starting to heat up in a serious way, and many market participants are missing out on the action.

Jim Cramer brought attention to the under-the-radar move in the sector on Thursday's "Stop Trading!" segment on CNBC. Cramer told viewers that the software stocks are exploding here, and you don't hear a word about them. He mentioned that names such as Oracle (ORCL - Get Report), Microsoft (MSFT - Get Report) and (CRM - Get Report) are starting to get very active to the upside.

The big names in the space such as Microsoft and Oracle aren't the only ones that are starting to advance. Just take a look at the action in smaller-cap companies such as Merge Healthcare (MRGE), up 195% on the year, or LivePerson (LPSN), up 91%. This clearly demonstrates that investors are bargain-hunting in many of the beaten-down names and finding value as the big and small companies are being bid up to higher prices.

The software complex is also starting to heat up from an M&A standpoint. Data-storage giant and software maker EMC (EMC) is battling it out with competitor NetApp (NTAP) to buy storage appliance and software firm Data Domain (DDUP) for at least $1.8 billion. Just last week, Intel (INTC - Get Report) said it would buy testing and development software maker Wind River Systems (WIND) for $884 million.

There are even rumors that Dell (DELL) is actively looking to do some deals to expand its portfolio in storage-related hardware, software and services. Like many large-cap tech companies, Dell is sitting on billions in cash that could be best put to work by buying up cheaper tech companies at depressed levels. Some rumors have Dell looking to buy out Palm (PALM) and some other potential targets include Emulex (ELX) and QLogic (QLGC).

Considering the M&A activity and the positive price action in the software sector, how should investors look to play this space? Let's take a look at a few software stocks that look enticing based off of their charts.

To read more, visit
Stockpickr is a wholly owned subsidiary of

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
DELL $0.00 0.00%
CRM $59.68 0.00%
INTC $28.64 0.00%
MSFT $50.50 0.00%
ORCL $35.54 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs