2 Beaten Down Software Stocks That Look Like Great Long-Term Buys
A 2022 examination of the information technology sector (let alone individual companies in that sector) would have just about any investor second-guessing the decision to go anywhere near it. The Nasdaq Composite index is largely made up of companies in the information technology sector, particularly software companies. Right now, the Nasdaq is trading down about 28.4% in 2022.
Looking at that poor stock performance, it would seem most software and information technology companies did poorly this year. In some instances, the drop in valuation is truly warranted. Investors got caught up in a meme-stock euphoria in 2021 and several companies ended up overvalued based on short-term thinking. The stock price action this year has corrected the overenthusiasm.
With the final quarter of the year well underway, some companies have corrected to a point where buying again looks appealing. Whether you are lowering your cost basis or initiating a new position, here are two high-growth software companies with stocks now priced to be big winners over the long term.
Source Fool.com