3 SaaS stocks to pick up in May

the software as a service (SaaS) has exploded in popularity over the past two years because it offers state-of-the-art software solutions without requiring massive upfront expenditures. As organizations increasingly digitize and adopt cloud-based software solutions to support a hybrid workforce in the post-pandemic era, the demand for SaaS solutions is expected to continue to grow.

Simplicity, agility, profitability, increased accessibility and security offered by SaaS have made it the most reliable option for many businesses. According to a Gartner report, the service-based cloud application industry will be worth $143.7 billion by 2022.

Given the industry’s strong growth prospects, fundamentally sound SaaS stocks of WM Technology, Inc. (PLANS), The Sage Group plc (SGPYY) and The Descartes Systems Group Inc. (DSGX) could be good additions to his portfolio at their current lows.

WM Technology, Inc. (PLANS)

MAPS provides e-commerce and compliance software solutions to retailers and brands in the cannabis market in the United States, Canada and internationally. The company also offers advertising solutions; Sprout, a customer relationship management solution; and Cannveya, a delivery and logistics software solution.

MAPS total revenue increased 39.6% from the prior year quarter to $57.45 million during the fiscal first quarter ended March 31, 2022. The cash balance for the quarter was $55.86 million, an increase of 184.9% year over year. .

Consensus PES the estimate for the year ending December 2022 represents a 94.9% year-over-year improvement. The consensus revenue estimate of $260.58 million for the same period represents a 34.9% increase over the prior year.

MAPS has lost 19% over the past month to close the last trading session at $5.51.

MAPS’ strong fundamentals are reflected in its POWR Rankings. POWR ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

MAPS has a B grade in quality and value. It is ranked No. 6 out of 26 stocks in the Software – SAAS industry.

Beyond what is stated above, we also rated MAPS for momentum, stability, sentiment and growth. Get all the MAPS scores here.

The Sage plc group (SGPYY)

Based in Newcastle upon Tyne, UK, SGPYY provides accounting and business management solutions and services to small and medium-sized businesses in North America, Europe and internationally.

On April 22, 2022, SGPYY announced the acquisition of cloud-based savings and loan software Mateo from MAS Integrated Solutions to help nonprofit organizations better manage programs involving a revolving loan fund. This should enable SGPYY to provide value-added services to the non-profit sector, helping the company expand its market segment.

SGPYY’s recurring revenue increased 8% year-on-year to £429 million ($452.27 million) in the first quarter of the fiscal year, while its total organic revenue improved 5% year-on-year to £458m ($482.84m).

Analysts expect SGPYY’s revenue for the fiscal year ending September 2023 to be $2.55 billion, a 7.1% year-over-year increase.

Over the past month, the stock has fallen 10.6% to close yesterday’s trading session at $34.37.

It’s no surprise that SGPYY has an overall rating of B, which equates to Buy in our POWR rating system. The stock also has a B rating in value, stability and quality. In the same sector, it is ranked No. 4.

In addition to the POWR ratings I just highlighted, you can see the SGPYY ratings for Growth, Momentum, and Sentiment here.

The Descartes Systems Group Inc. (DSGX)

Headquartered in Waterloo, Canada, DSGX provides cloud-based logistics and supply chain management solutions that improve the productivity, performance and security of logistics-intensive businesses worldwide.

In April, DSGX announced the acquisition of Foxtrot, a leading provider of machine learning-based mobile route execution solutions; to leverage the company’s advanced machine learning algorithms and technology. This is expected to enhance DSGX’s broader route planning and execution solution suite and complement its investment in GreenMile, a retail food and beverage distribution vertical.

For the fiscal year ended January 31, 2022, DSGX’s revenue increased 21.8% year-over-year to $424.69 million. Its gross profit rose 24.8% from a year earlier to $322.88 million. Operating profit for the year was $103.43 million, reflecting a 44.9% year-over-year increase. Additionally, its EPS was $1, up 63.9% from a year earlier.

DSGX’s revenue for the quarter ended April 2022 is expected to be $114.05 million, indicating 15.4% year-over-year growth. Additionally, the company’s revenue is expected to grow 12.7% year-over-year to $478.61 million in the current fiscal year.

DSGX stock has fallen 18.5% over the past month to close the last trading session at $57.23.

DSGX’s sonic fundamentals are reflected in its POWR ratings. The stock has an overall rating of B, which is equivalent to Buy in our POWR rating system.

The company also has a B rating in quality, stability, and sentiment. The stock is ranked #1 in the same industry. Click here to get DSGX’s ratings for growth, value and momentum.

MAPS shares were trading at $5.09 per share on Monday afternoon, down $0.67 (-11.63%). Year-to-date, MAPS is down -14.88%, compared to a -15.26% rise in the benchmark S&P 500 over the same period.

About the Author: Komal Bhattar

Komal’s passion for the stock market and financial analysis led her to pursue her career in investment research. Its fundamental approach to stock analysis helps investors identify the best investment opportunities. After…

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