3 US Software Stocks With Strong Earnings Momentum Worth A Closer Look

Markets just reminded investors how quickly the story can flip, with AI infrastructure stocks bouncing back, strong jobs data supporting growth hopes, and hawkish Fed talk keeping rate risks firmly on the table. That mix is punishing weaker balance sheets and rewarding businesses with robust earnings momentum. This article walks through three US Quality Growth Stocks from our screener that appear closely linked to this news flow and explains why their current setups may warrant attention now.

The stocks covered below are just a sample, and the full screen surfaced 19 more US Quality Growth Stocks with Strong Earnings Momentum that carry similarly compelling stories but are not discussed here. To identify and analyze the setups that best fit your playbook, head straight into the US Quality Growth Stocks with Strong Earnings Momentum screener.

Globant (GLOB)

Overview: Globant is a global technology services group that uses AI driven platforms and subscription models to build and modernize clients' digital products, operations, and customer experiences.

Operations: Globant generates about US$2.45b in revenue primarily from software and programming services for enterprise customers worldwide.

Market Cap: US$2.13b

Globant fits this quality growth and earnings momentum screen because it blends recurring style AI services with traditional digital transformation work. This gives the firm multiple ways to benefit if enterprises keep leaning into complex AI projects.

"The rapid adoption of AI and generative AI across industries is increasing the complexity of enterprise technology environments, driving greater demand for specialist partners to design, implement, and maintain tailored AI solutions. Globant's differentiated Enterprise AI platform, AI Pods subscription model, and recent multiyear partnership wins continue to position the company to capture a greater share of this market, which could support revenue and margins as more recurring AI work feeds into earnings."

What really moves the needle from here is how one quiet shift in Globant's mix affects the earnings power behind those AI headlines.

That quiet mix shift is exactly what the full narrative for Globant unpacks in detail, including how earnings momentum could decouple from headline AI sentiment.

Avnet (AVT)

Overview: Avnet is a global distributor of semiconductors and electronic components that also provides design support and supply chain services to hardware makers.

Operations: Avnet generates about US$30.49b from its Electronic Components segment and around US$1.97b from higher margin Farnell distribution activities.

Market Cap: US$6.29b

Avnet fits this quality growth and earnings momentum theme as a large scale hardware distributor. Its breadth can turn broad electronics demand into relatively steady profit and cash generation when end markets are humming together.

"Recovery in global demand led by growth in Asia and improving bookings and backlog across regions remains in focus, with management now pointing to tight supply, extended lead times in more than 50% of product categories and book to bill ratios above 1.0, which together point to potential support for Avnet revenue and order visibility."

What really matters from here is how one quiet shift in where that demand is most intense filters through future margins and earnings power.

That quiet shift in demand mix is exactly what the full narrative for Avnet breaks down, including how pricing power, margins, and earnings momentum could be getting masked today.

Agilysys (AGYS)

Overview: Agilysys develops cloud based hospitality software that runs hotel, resort, casino, and restaurant operations for enterprise customers worldwide.

Operations: Agilysys generates about US$344 million in revenue by providing software solutions to the global hospitality industry.

Market Cap: US$3.37b

Agilysys fits this quality growth screen because recurring hospitality software and services can turn steady guest traffic into multi quarter earnings power.

"Although Agilysys is guiding to move gross margin into the mid to high 60% range over time, some external comparisons point to structurally higher infrastructure and delivery costs than many software peers."

The key factor shaping the potential upside from here is how one relatively quiet pressure on its recurring model ultimately affects profitability and cash generation.

That pressure point is exactly where the full narrative for Agilysys shows how Agilysys could turn today’s cost drag into either accelerating earnings power or a stalled margin story.

Curious About High Conviction Alternatives

Fresh ideas often appear early. Late money typically ends up chasing momentum or buying into a falling stock. Scan these under-the-radar lists before the crowd and act based on your own research and judgment.

• Look for resilient cash generators by scanning the list of solid balance sheet and fundamentals (24 results), which has been filtered for financial strength.
• Review the 8 dividend fortresses if you are interested in companies that have a record of making regular dividend payments.
• Explore potential opportunities in infrastructure-related companies by checking the 42 power grid technology and infrastructure stocks focused on power grid and related projects.

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