This past spring has not been kind to software-as-a-service (SaaS) stocks. After an epic rise during the first year of the pandemic, many of them have taken steep double-digit-percentage hits as of late. The problem isn’t with cloud-based businesses themselves, but rather general investor rotation into companies that could benefit from “economic reopening” as consumer behavior starts to normalize again.
The cloud is a secular growth trend, though, and many SaaS stocks are now on sale. Three that look like especially good buys in June are Palo Alto Networks (NYSE:PANW), Anaplan (NYSE:PLAN), and PubMatic (NASDAQ:PUBM).