txaa.top

RBC: CrowdStrike Among Top Software Stocks in North America by 2025

According to an in-depth report by RBC Capital Markets, cybersecurity company CrowdStrike (CRWD.US) has been rated as one of the best software stocks in North America for 2025.

CrowdStrike's stock price plummeted following a widespread outage in mid-July, after which the company reassessed some of its programs, leading to a continuous rebound in stock price. Since early August, the stock has surged by approximately 35%.

RBC analyst Matthew Hedberg stated, "Although CrowdStrike's recent outage has dominated the news headlines and created short-term noise, we believe the company will emerge from the outage crisis as a stronger entity. We see no risk in the company's estimates for the fiscal years 2025 and 2026, and we believe the $10 billion ARR target is achievable."

RBC rated 11 software companies as the best stocks for 2025, with CrowdStrike being one of them.

RBC also considers Adobe (ADBE.US), Constellation Software, and Veeva Systems (VEEV.US) as the best large-cap software stocks.

Speaking about Adobe, RBC analyst Matthew Swanson said, "The market generally expects the company to have revenue growth rates of 10.5% and 10.9% for the fiscal years 2024 and 2025, respectively, and Digital Media ARR growth rates of 12.9% and 11.3%." "We believe these estimates could be conservative as the benefits of generative artificial intelligence (GenAI) begin to materialize."

The most favored mid-cap software companies in North America for 2025 include Descartes Logistics Systems Group (DSGX.US), Gitlab (GTLB.US), and Guidewire Software (GWRE.US).

Hedberg stated, "We believe GitLab is well-positioned to consolidate DevSecOps spending."

RBC is also bullish on Clearwater Analytics (CWAN.US), Kinaxis, and Varonis Systems (VRNS.US), three small-cap software companies.

Hedberg said, "We believe Varonis is at the early stage of entering a large and growing data security/governance market. With a SaaS-first model, we believe Varonis has the opportunity to achieve strong financial growth in the fiscal year 2025 and beyond."