1 Software Stock on Our Buy List and 2 We Turn Down

Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital. But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 25.5% over the last six months. This drawdown was seriously disheartening since the S&P 500 held steady.