10 Best Performing Software Stocks to Buy According to Analysts

4. Semrush Holdings Inc. (NYSE:SEMR)

YTD returns: 27%

Potential Upside: 20%

Number of Hedge Fund Holders: 27

Semrush Holdings Inc. (NYSE:SEMR) offers a software platform that helps businesses enhance their online presence (services commonly known as SEO (Search Engine Optimization)). The platform enables companies worldwide to identify and timely engage with their target audience through the right channels. By collecting and analyzing vast amounts of data from millions of sources, the company provides valuable insights into market trends, helping businesses refine their strategies, improve products, and optimize marketing efforts.

After a weak 2024, where its share price declined 13%, Semrush Holdings Inc. (NYSE:SEMR) has rebounded strongly in 2025, gaining 27% YTD. This momentum has been largely driven by multiple analyst upgrades and new coverage in early January. On January 13, a Morgan Stanley analyst upgraded the stock to Overweight from Equal Weight, increasing the price target from $17 to $20. The analyst sees Semrush Holdings Inc. (NYSE: SEMR) as a leader in online visibility management, with significant growth potential in the enterprise market. They believe that easing pressures on small businesses and freelancers, along with improving profit margins, could support a sustained 20% revenue growth—an opportunity the market has yet to fully appreciate.

On January 14, Northland analyst Luke Horton initiated coverage on Semrush Holdings Inc. (NYSE:SEMR) with an Outperform rating and a price target of $18, further reinforcing the positive sentiment around the stock.