The software business can be a lucrative one, with high profit margins and a long runway for growth as satisfied customers sign up for additional services over time. But these characteristics also mean the industry is competitive, attracting rivals seeking to establish themselves in those prime market-share positions.

The challenge for investors is finding software specialists that have the right mix of sustainable growth and earnings power. Ideally, these stocks will be valued relatively cheaply, too.

With those goals in mind, let's look at two attractive software stocks to put on your watch list. Read on for good reasons to buy Microsoft (NASDAQ: MSFT) and Adobe (NASDAQ: ADBE).

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Source Fool.com