Investors looking to make money in the software space may want to consider this winning strategy, according to Trivariate Research.
"Own Software stocks with low but accelerating revenue growth: Our work shows this is by far the best way to make money in software," wrote founder Adam Parker, highlighting a basket of stocks that have already been on a tear this year.
Growth stocks across the board have rallied to start the year as artificial intelligence tailwinds persist, strong earnings drive expectations for ongoing growth and recent data points to signs of a robust economy.
Zscaler and CrowdStrike are among the names included, with shares up 15% and 29%, respectively, since the start of 2024.
Both companies are also coming off a strong 2023 in which shares rallied 98% and 142%, respectively.
Persons:
Adam Parker, CNBC's Michael Bloom
Organizations:
Research