Microsoft (MSFT Quote) and a handful of other software companies could offer some much-needed upside for investors as the sector bounces back after a difficult few months.
"We believe the first quarter of the calendar year marked the nadir for software stock fundamentals and are now recommending investors increase software exposure," wrote RBC Capital Markets analyst Robert Breza in a note released Tuesday. "The next several quarters should see reduced earnings risk, easier comparisons, lower FX headwinds, [and] stimulus spending benefits in many verticals."
Despite a recent slowdown in spending, Breza feels that infrastructure software companies such as Microsoft, Adobe (ADBE Quote) and Digital River (DRIV Quote) are all well positioned for the future. The analyst upgraded the three firms from "sector perform" to "outperform." ...
Recent Comments
| Dow Jones | S&P 500 | NASDAQ | 10-Year Note | |
|---|---|---|---|---|
| 10,336.00 | 1,098.59 | 2,184.59 | 35.01 |
Oil *
73.16
|
|
DOWN
105.12
|
DOWN
10.59
|
DOWN
22.32
|
DOWN
0.95
|
10 Yr
3.50%
SPDR Gold
108.02
|
|
-1.01%
|
-0.95%
|
-1.01%
|
-2.64%
|
Data delayed 20 minutes |
Connect with TheStreet