In the last week, volatility has increased due to rising concerns about high inflation and weaker job growth reports. As investors seek ways to protect their portfolio from a potential correction, it is wise to bet on fundamentally-sound software stocks SS&C Technologies (SSNC), Open Text (NASDAQ:), Progress Software (NASDAQ:), Mitek Systems (NASDAQ) – Tech companies have seen impressive growth in earnings over the past quarter. This is due to increased demand for their products and a continuing hybrid work environment that allows them to integrate technology into almost all industries. However, factors like high inflation, the rapid spread of the highly infectious omicron variant, weak job growth reports for November, and the Federal Reserve’s tightening monetary policy made the markets witness a sell-off last Friday, with the tech-heavy losing 1.9%.

As these factors could keep the market under pressure in the near term, it is wise to bet on fundamentally-sound software stocks to hedge investors’ portfolios from an anticipated market correction, given its long-term growth prospects. It should also grow due to growing interest in AI and machine learning as well as fintech, data analysis, AR/VR, and fintech. By 2026, the global software market will grow by 7.2% and reach $823.71 trillion.

Fundamentally-sound software stocks SS&C Technologies Holdings, Inc. (SSNC), Open Text Corporation (OTEX), Progress Software Corporation (PRGS), and Mitek Systems, Inc. (MITK) have the potential to cash in on the industry tailwinds and deliver solid returns in the near term.

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