Software a Relative Outperformer, Says BCA Research

December 24, 2008 at 8:44 am PT

Our friends at BCA Research were kind enough yesterday to slip the following software musings over the transom at TTD, and I nearly fell off my chair: Buy software stocks! As the folks at BCA see it, “The corporate sector, now more than ever, is trying to squeeze every bit of productivity out of resources.” Well, sure. So? “Productivity-enhancing software firms are the prime beneficiaries. During an economic downturn, overall IT budgets drop (expensive hardware refresh cycles get postponed), however, software-related outlays remain resilient.” Well, I guess that makes sense. Better yet, says BCA, “Investors need not pay up for these attractive defensive characteristics as relative price-to-earnings multiples are close to cyclical lows.”

Read the rest of this post

Tagged with: Barrons, BCA Research, cyclical lows, frontpage, IT budgets, software, Tech Trader Daily, Tiernan Ray

comments so far. Add yours.

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Web Sites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other Web sites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Voices is edited by Beth Callaghan.