10 Best Performing Software Stocks to Buy According to Analysts

3. CSG Systems International Inc. (NASDAQ:CSGS)

YTD returns: 31%

Potential Upside: 12%

Number of Hedge Fund Holders: 23

CSG Systems International Inc. (NASDAQ:CSGS) provides software solutions that support businesses in the telecom, media, and financial services sectors with revenue management and customer experience enhancement. Its cloud-based platforms streamline billing, customer engagement, and payment processing, enabling companies to operate more efficiently and drive revenue growth.

After a largely underwhelming 2024, CSG Systems International Inc. (NASDAQ:CSGS) saw a strong rebound beginning in November, following the release of impressive Q3 2024 results and the announcement of a contract renewal with Comcast, extending through 2030. Alongside an upward revision in its profitability guidance for FY 2024, the stock surged 17% on November 7. However, despite this rally, shares still closed 2024 with a 4% decline.

In 2025, the stock has continued to benefit from rising investor expectations. Rightfully so, as the company delivered stronger-than-expected Q4 2024 results on February 5. This performance led to widespread positive sentiment among analysts, prompting several price target upgrades. Among them, RBC Capital analyst Dan Bergstrom raised his target from $58 to $69 while maintaining an Outperform rating, citing strong deal activity, solid contract renewals, and improving business fundamentals.