According to a deep report from RBC Capital Markets, CrowdStrike (CRWD.US) was named one of the best stocks in the North American software sector in 2025.
CrowdStrike's stock price plunged after a widespread outage in mid-July, and the company reassessed some processes, leading to a sustained rebound. Since early August, the stock has soared about 35%.
Matthew Hedberg, an analyst at RBC, said: "While CrowdStrike's recent outage has grabbed headlines and caused short-term noise, we believe the company will come out of the outage crisis as a stronger company. We believe the estimated forecasts for 2025 and 2026 are risk-free, and the $10bn ARR target is achievable."
RBC named 11 software companies as the best stocks in 2025, including CrowdStrike.
RBC also believes Adobe (ADBE.US), Constellation Software and Veeva Systems (VEEV.US) are the best large software stocks.
Matthew Swanson, an analyst at RBC, said about Adobe: "The market broadly expects revenue growth of 10.5% and 10.9% in 2024 and 2025, respectively, and digital media ARR growth of 12.9% and 11.3%." "We believe these estimates could be conservative as the benefits of generative AI start to show up."
DSGX.US, Gitlab (GTLB.US) and Guidewire Software (GWRE.US) are the most favored mid-sized software companies in North America in 2025.
"We believe GitLab is well positioned to consolidate DevSecOps spending," Hedberg said.
RBC also likes three small software companies: Clearwater Analytics (CWAN.US), Kinaxis and Varonis Systems (VRNS.US).
"We believe Varonis is in the early stages of entering a large and growing data security/governance market. Through the SaaS-first model, we believe Varonis has the opportunity to achieve strong financial growth in 2025 and beyond," Hedberg said.