Over the previous few years, investors have shown an exponential increase in interest in service companies. According to Kroll Bond Rating Agency Inc. and S&P Global Market Intelligence, lenders are investing billions into software companies for long-term gains. From $44.4 billion in 2017, the global SaaS market for business applications is predicted to reach $94.9 billion by 2022. IPOs are also flooding the markets, especially in the aftermath of the pandemic. More than software-as-a-service (SaaS) firms will exist in 2021.
Insider Monkey starts the list of the 10 best SaaS stocks to buy and hold for long-term profits. Splunk Inc. declined after reporting disappointing financial results for the first quarter. The company’s products offer a lot of room for long-term growth. In the list of the finest SaaS stocks to purchase and keep for long-term profitability, Splunk is ranked 10th. Smartsheet Inc. is a project management software company that operates in the cloud. In the first quarter, revenue increased by 37% year over year to $117.08 million. In the list of the finest SaaS stocks to purchase and keep for long-term returns, the firm ranks ninth. Salesforce.com, Inc. just reported a stellar first quarter and provided an optimistic second-quarter outlook. In the list of the finest SaaS stocks to purchase and keep for long-term returns, the stock ranks eighth. The stock of Zendesk, Inc. has risen 72 percent in the last year. The company’s products continue to be in high demand. In our list of the finest SaaS stocks to purchase and keep for long-term returns, the stock ranks seventh. In the first quarter of 2021, revenue at Coupa Software Incorporated (NASDAQ: COUP) increased by 40% year over year to $166.93 million. After the earnings announcement, the stock dropped, but it’s still a good entry place for long-term investors. For more details, click 10 Best SaaS Stocks to Buy and Hold for Long-Term Profits.