Because the remote working culture is expected to continue for the foreseeable due to a resurgence of COVID-19 cases, the software industry should continue its rapid growth. So, we think it could be wise to add fundamentally strong enterprise software stocks Oracle (ORCL) and Workday (NASDAQ:WDAY) to one’s portfolio now. Conversely, we think Bill.com (BILL) and Fastly (NYSE:FSLY) look significantly overvalued at their current price levels and are best avoided now. Read on.In addition to the emergence of the highly contagiousCOVID-19 omicron variant, COVID-19 cases are resurgent in several countries. The United States could soon hit a weekly average of 100,000 cases. Consequently, remote working conditions are expected to continue, which should increase the demand for enterprise software solutions. Furthermore, with most companies adopting a hybrid working structure given its lower administrative expenses and increased employee productivity, the enterprise software industry is expected to achieve impressive growth over the long term.
The growing use of big data has made enterprise software an inherent part of the current work culture. According to a ReportLinker survey, the global enterprise software market is expected to grow at a 6.4% CAGR to $79.70 billion by 2026. However, with cut-throat competition, not all enterprise software stocks are good bets now.
So, we think it could be wise to scoop up the shares of quality enterprise software companies Oracle Corporation (NYSE:ORCL) and Workday, Inc. (WDAY). But Bill.com Holdings, Inc. (NYSE:BILL) and Fastly, Inc. (FSLY) look significantly overvalued at their current price levels, so they are best avoided now.