Software solutions have been adopted at an increased rate due to continued remote and hybrid work, partly because of the COVID-19 variant. The rapid digitization of the market is also expected to boost its growth. We believe that recent price drops offer a great opportunity to place a bet on mid-cap, fundamentally sound software technology stocks Endava (NYSE:), Amdocs (NASDAQ:) and Datto(MSP). Continue reading. Some states have imposed or reimposed travel restrictions due to the COVID-19 variant. This has caused delays for some U.S. employees returning to their offices. Small and large companies should be more dependent on software solutions because of the continued remoteness. Außerdem, according to a Gartner Report by NYSE: The United States will be the leader in remote workers in the U.S. in 2022. 53% of U.S. employees are located in the U.S.

Workers and companies are increasingly choosing hybrid work arrangements and remote/hybrid lifestyles because they have better work/life balance, greater productivity, and higher average annual income. Software is a major investment by businesses to improve and upgrade their business processes. The global software market will reach $823.71 Billion by 2026. This represents a 7.2% compound annual growth rate.

These factors have boosted investor optimism regarding the software sector, as evidenced by the IGV 19.5% return of the iShares Expanded Tech Software Sector ETF (IGV). It could make sense to invest in quality mid-cap stocks like Endava plc. (DAVA), Amdocs Limited. (DOX) and Datto Holding Corp. Their 52-week lows are still below them, and they could experience significant upside in coming months.

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