We Ranked 100 SaaS Stocks. These are the Best 4.

SaaS is totally hot. Right?

Here’s the problem. Most investors don't really know what SaaS is, exactly — let alone which companies are actually worth buying. So we put 100 SaaS stocks through WallStreetZen's Zen Ratings system to separate the real opportunities from the hype. The results were surprising: 63 earned a C rating or worse, while only 7 received an A.

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Perhaps the biggest surprise was how many household names landed in the middle of the pack. All of these big names merely earned C ratings, which amount to a Hold recommendation:

CrowdStrike (CRWD)

Snowflake (SNOW)

Adobe (ADBE)

and Palantir (PLTR).

These remain excellent businesses, but today's valuations and underlying fundamentals make them far less compelling than many investors assume.

The companies that stood out weren't necessarily the most popular. They were the ones pairing strong fundamentals with attractive valuations.

As a service to you, we further refined that list of 7 A-rated stocks to deliver what we believe are the highest-potential names among the bunch.

Ready for the names? 

RingCentral (RNG)

RingCentral runs cloud communications for businesses—phone, video, messaging, all of it over the internet. 

For years, the market treated it like a dead man walking, convinced AI chatbots and mounting competition would make it obsolete. But the fundamentals tell a different story.

Earnings are forecast to grow more than 86% annually, well ahead of the industry average. The company continues to generate strong cash flow, aggressively repurchase shares, and trades at a PEG ratio of just 0.5, an unusually inexpensive valuation relative to its growth prospects.

Wall Street remains divided, but some of the most respected analysts—including one ranked in the top 4% for stock-picking performance—see meaningful upside from current levels.

The Zen Ratings system gives RingCentral an A (Strong Buy), placing it in the top 1% of all stocks tracked. Value and Financials both rank in the top 1% of the market, while Growth ranks in the top 4%. Momentum and Sentiment remain average, but the overall picture is clear: a financially strong company with exceptional growth trading at a valuation that still assumes the business is in decline.

Riskified (RSKD)

Riskified operates an AI-powered fraud prevention platform for online merchants, using machine learning to determine whether purchases are legitimate before they're approved. As AI makes online fraud increasingly sophisticated, demand for trusted fraud detection should only continue to grow.

The company has beaten Wall Street earnings estimates for four consecutive quarters, maintains a healthy balance sheet with low leverage, and holds a significant cash position.

Coverage remains limited, but the analysts who do follow the stock project more than 20% upside from current prices.

Riskified earns an A (Strong Buy) in the Zen Ratings system, placing it in the top 1% of stocks overall. Growth ranks in the top 3%, Financials in the top 19%, Sentiment in the top 15%, and the proprietary AI Factor sits in the top 2% of the entire market. While Value, Safety, and Momentum remain closer to average, the combination of accelerating fundamentals and an elite AI signal makes Riskified one of the more intriguing software names flying under Wall Street's radar.

VTEX (VTEX)

VTEX provides enterprise digital commerce software that powers online stores and marketplaces for major brands, particularly across Latin America, while steadily expanding its global footprint.

The company has quietly turned profitable while maintaining gross margins above 78%, and analysts expect earnings to grow more than 50% over the next year.

VTEX also earns an A (Strong Buy) rating. Growth ranks in the top 11% of stocks, Financials in the top 13%, while its standout metric is Sentiment, which sits in the top 1% of the entire market. That suggests analysts and institutional investors are quietly becoming more bullish on a company that most retail investors have barely heard of.

The biggest risk is its exposure to Latin American economies, which can introduce additional currency and macroeconomic volatility. But investors willing to accept that uncertainty gain exposure to a profitable, fast-growing software platform that continues attracting smart-money interest.

Five9 (FIVN)

Five9 develops the AI-powered software behind modern cloud contact centers, helping businesses automate customer service through intelligent call routing, chatbots, and AI agents.

Rather than being disrupted by AI, the company has become one of the primary ways businesses deploy it.

Five9 currently ranks No. 1 out of 129 companies in its industry. It trades at a PEG ratio of roughly 0.44 while analysts expect earnings to grow nearly 80% annually, a combination that's rare among software companies.

Wall Street's highest-ranked analysts remain bullish, with multiple top-performing analysts maintaining Strong Buy ratings and projecting meaningful upside.

The stock also earns an A (Strong Buy) from the Zen Ratings system. Financials rank in the top 7% of stocks, while both Value and Growth land in the top 3%. Momentum, Safety, and AI remain average, but the overall picture is difficult to ignore: one of the fastest-growing companies in its industry also happens to be one of the cheapest.

The broader takeaway is simple. The software sector still offers tremendous opportunities—but they're increasingly found outside the names dominating the headlines. While many well-known SaaS companies now look fairly valued or expensive, a smaller group continues to combine exceptional growth, strong fundamentals, and surprisingly attractive valuations.

What do you think of these names? Is there another SaaS stock you think should have made the cut? We love hearing from you. 

Research any of these stocks on wallstreetzen.com.

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