Sectors & IndustriesTechnologySoftware - Infrastructure

Best Software Infrastructure Stocks to Buy Now (2023)

Top software infrastructure stocks in 2023 ranked by overall Zen Score. See the best software infrastructure stocks to buy now, according to analyst forecasts for the software - infrastructure industry.

According to Zen Score, the 3 best software infrastructure stocks to buy right now are:

Dlocal (NASDAQ:DLO) is the top software infrastructure stock with a Zen Score of 68, which is 38 points higher than the software infrastructure industry average of 30. It passed 23 out of 33 due diligence checks and has strong fundamentals. Dlocal has seen its stock return 33.81% over the past year.

Dlocal has an average 1 year price target of $20.40, an upside of 20.14% from Dlocal's current stock price of $16.98.

Dlocal stock has a consensus Hold recommendation according to Wall Street analysts. Of the 5 analysts covering Dlocal, 40% have issued a Strong Buy rating, 0% have issued a Buy, 40% have issued a hold, while 0% have issued a Sell rating, and 20% have issued a Strong Sell.

Gigacloud Technology (NASDAQ:GCT) is the second best software infrastructure stock with a Zen Score of 64, which is 34 points higher than the software infrastructure industry average of 30. It passed 21 out of 33 due diligence checks and has strong fundamentals. Gigacloud Technology has seen its stock return 93.75% over the past year, overperforming other software infrastructure stocks by 60 percentage points.

Gigacloud Technology has an average 1 year price target of $18.00, an upside of 35.03% from Gigacloud Technology's current stock price of $13.33.

Gigacloud Technology stock has a consensus Strong Buy recommendation according to Wall Street analysts. Of the 1 analyst covering Gigacloud Technology, 100% have issued a Strong Buy rating, 0% have issued a Buy, 0% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Engagesmart (NYSE:ESMT) is the third best software infrastructure stock with a Zen Score of 60, which is 30 points higher than the software infrastructure industry average of 30. It passed 20 out of 33 due diligence checks and has strong fundamentals. Engagesmart has seen its stock return 42.79% over the past year, overperforming other software infrastructure stocks by 9 percentage points.

Engagesmart has an average 1 year price target of $25.60, an upside of 11.99% from Engagesmart's current stock price of $22.86.

Engagesmart stock has a consensus Buy recommendation according to Wall Street analysts. Of the 5 analysts covering Engagesmart, 20% have issued a Strong Buy rating, 20% have issued a Buy, 60% have issued a hold, while 0% have issued a Sell rating, and 0% have issued a Strong Sell.

Out of 8 software infrastructure stocks that have issued dividends in the past year, the 3 software infrastructure stocks with the highest dividend yields are:

Virnetx Holding (NYSE:VHC) has an annual dividend yield of 246%, which is 214 percentage points higher than the software infrastructure industry average of 32.1%. Virnetx Holding's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Virnetx Holding's dividend has shown consistent growth over the last 10 years.

Virnetx Holding's dividend payout ratio of -159.2% indicates that its high dividend yield might not be sustainable for the long-term.

Gen Digital (NASDAQ:GEN) has an annual dividend yield of 2.26%, which is -30 percentage points lower than the software infrastructure industry average of 32.1%. Gen Digital's dividend payout is not stable, having dropped more than 10% one times in the last 10 years. Gen Digital's dividend has not shown consistent growth over the last 10 years.

Gen Digital's dividend payout ratio of 22% indicates that its dividend yield is sustainable for the long-term.

Csg Systems International (NASDAQ:CSGS) has an annual dividend yield of 2.12%, which is -30 percentage points lower than the software infrastructure industry average of 32.1%. Csg Systems International's dividend payout is stable, having never dropped by more than 10% in the last 10 years. Csg Systems International's dividend has shown consistent growth over the last 10 years.

Csg Systems International's dividend payout ratio of 45.7% indicates that its dividend yield is sustainable for the long-term.

Software infrastructure stocks were up 0.44% in the last day, and down -0.97% over the last week.

We couldn't find a catalyst for why software infrastructure stocks are up.

Based on WallStreetZen's Valuation Score, the 3 most undervalued software infrastructure stocks right now are:

Amdocs (NASDAQ:DOX) is the most undervalued software infrastructure stock based on WallStreetZen's Valuation Score. Amdocs has a valuation score of 86, which is 58 points higher than the software infrastructure industry average of 28. It passed 6 out of 7 valuation due diligence checks.

Amdocs's stock has dropped -3.54% in the past year. It has underperformed other stocks in the software infrastructure industry by -37 percentage points.

Csg Systems International (NASDAQ:CSGS) is the second most undervalued software infrastructure stock based on WallStreetZen's Valuation Score. Csg Systems International has a valuation score of 71, which is 43 points higher than the software infrastructure industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Csg Systems International's stock has dropped -9.34% in the past year. It has underperformed other stocks in the software infrastructure industry by -43 percentage points.

Consensus Cloud Solutions (NASDAQ:CCSI) is the third most undervalued software infrastructure stock based on WallStreetZen's Valuation Score. Consensus Cloud Solutions has a valuation score of 71, which is 43 points higher than the software infrastructure industry average of 28. It passed 5 out of 7 valuation due diligence checks.

Consensus Cloud Solutions's stock has dropped -54.45% in the past year. It has underperformed other stocks in the software infrastructure industry by -88 percentage points.