3 Software Stocks to Double Your Money in the Next 24 Months

Stocks to buy

With interest rate cuts on the horizon, investors can turn to software stocks for growth in 2024. Global software spending is rising with AI being a fundamental driver to the rising demand of software and IT solutions for businesses. Gartner forecasts worldwide IT spending to reach $5 trillion in 2024, an increase of 6.8% from 2023.   

Software companies are pivotal to businesses day to day operations across many different industries. The market opportunities in generative AI also present a compelling reason to invest for the long term. These 3 software companies stand out as promising candidates to potentially double your investment within the next 24 months. 

Intuit (INTU)

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Intuit (NASDAQ:INTU) is one of the most transformative software stocks to buy for 2024. The company has continued its streak of strong double digit sales growth, operating income and FCF. Furthermore, they have delivered a 14% CAGR in their dividend per share over the last decade.

Intuit stock has far outpaced the market, and has delivered 25% in compounded annual returns over the last 5 years. Their branded software products include Intuit Assist, Turbo Tax, Credit Karma, QuickBooks and Mailchimp. They have continued to see strong double digit growth in operating income, reflected in their recent Q1 FY24 financial results. Additionally, Intuit’s new generative AI assistant is set to increase workflows and automated tasks for customers. 

In Q1 FY24, Intuit’s revenue grew 15% YOY to 3 billion. EPS skyrocketed 507% YOY to 85 cents per share, driven by AI integrations into their core product line. The company expects revenue growth in the 11-12% range, with GAAP operating income between $3.615 billion to $3.72 billion for FY24. As Intuit harnesses the power of its new generative AI assistant, investors can expect this growth to continue.

Automatic Data Processing (ADP)

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Automatic Data Processing (NASDAQ:ADP) is set to report its Q2 2024 earnings results on January 31st. There is a lot of optimism around the company after closing off a strong 2023 fiscal year.  

Automatic Data Processing is an enterprise software company providing HR, workforce and payroll management solutions. They have been around for more than 7 decades, and have delivered tremendous shareholder returns over the last decade. In their FY23 financial results, revenue increased 9% YOY to $18 billion. EPS increased 17% YOY to a record $8.21 per share, with adjusted EBITDA margin expanding by 130 basis points. 

Management remains bullish on the outlook for FY24, and that has already been showcased in the first quarter. In Q1 fiscal 2024, revenue increased 7% YOY to $4.5 billion. EPS increased 11% to $2.08 per share, with adjusted EBITDA margin up 10 basis points to 24.2%. Looking out to the full year, CEO Maria Black remains bullish on their ability to continue driving profitable growth. They expect revenue growth of 6-7%, with EPS growth between 10-12%. Depending on how the second quarter pans out, management could raise FY24 guidance making ADP stock a buy.

Oracle (ORCL)

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Oracle (NYSE:ORCL) is undoubtedly one the best software stocks to buy for 2024. The company has an exciting future ahead, largely driven by the market opportunities in generative AI. 

Oracle is coming off a strong 2023 fiscal year, and this year is likely to see an acceleration in growth. In FY23, revenue increased 18% YOY to a record $50 billion. Their cloud applications and infrastructure businesses saw an astonishing 50% growth from the year prior. Now looking out to the 2024 fiscal year, Oracle’s cloud growth momentum has continued. 

In Q2 FY24, cloud revenue increased 25% YOY to $4.8 billion. Cloud infrastructure revenue saw 52% growth, as cloud service demand rises at an unprecedented level. It is rising so fast that Oracle is building 100 new cloud data centers around the world. Oracle is a pure play software bet on the growing demand for artificial intelligence. With a forward PE of 20 and P/S ratio of 6, this is one of the cheapest AI software stocks to buy for 2024. 

On the date of publication, Terel Miles did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Terel Miles is a contributing writer at InvestorPlace.com, with more than seven years of experience investing in the financial markets.

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