We recently published a list of 10 Best Software Infrastructure Stocks to Buy According to Analysts. In this article, we are going to take a look at where Onestream, Inc. (NASDAQ:OS) stands against other best software infrastructure stocks to buy according to analysts.
Companies today allocate significant resources to various aspects of software infrastructure, including servers and data centers for secure data storage and processing, cloud migration and management for scalable environments, network monitoring and management to ensure stability and security, and communication software. Additionally, software delivery and deployment solutions streamline application deployment, while bug tracking and error handling systems manage and resolve software issues. The increasing demand for cloud computing, digital transformation, and the integration of advanced technologies like artificial intelligence and machine learning are expected to drive substantial growth in the global software infrastructure sector. As organizations continue to prioritize agility, scalability, and efficiency, the software infrastructure market is projected to expand rapidly.
According to a January 2025 report by The Business Research Company, the infrastructure software market size is projected to grow from $210 billion in 2024 to $220 billion in 2025, with a growth rate of 5.1%. The market has experienced strong growth in recent years due to spending on legacy system modernization, the increase in remote work, cybersecurity concerns, automation, and application performance optimization. The research firm anticipates continued strong growth, with the market expected to reach around $283 billion by 2029, at a compounded annual growth rate (CAGR) of 6.5%.
Major players in the sector will continue to play a significant role by investing heavily in enhancing their offerings to capture market share. These companies are focusing on developing innovative solutions that leverage AI and automation to improve operational efficiency and enhance the user experience.
Cantor Fitzgerald analyst Thomas Blakey recently initiated coverage of 18 names in infrastructure and artificial intelligence software. In a research note to investors, he highlighted the growing importance of infrastructure software due to the ongoing secular expansion of AI and generative AI. These developments drive the demand for unified, secure, and highly integrated data systems, observable infrastructure, real-time computing and networking capabilities, and enhanced workflows and collaboration. Additionally, the analyst expects cloud infrastructure platforms to be pivotal in consolidating these functions.
Our Methodology
To identify the 10 best software infrastructure stocks, we conducted extensive research to compile a list of fundamentally strong U.S. listed software infrastructure companies with a market capitalization of $2 billion and above. We then ranked the stocks in ascending order of their potential upside, with the stock having highest upside ranked at the top.
Note: All pricing data is as of market close on February 7.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
lOvE lOvE/Shutterstock.com
Onestream, Inc. (NASDAQ:OS)
Upside Potential: 26%
Number of Hedge Funds: 24
Onestream, Inc. (NASDAQ:OS) offers a unified, AI-enabled, and extensible software platform known as the Digital Finance Cloud, which integrates core financial functions with broader operational data and processes within a single platform. This software is designed to streamline financial processes, enhance data accuracy, and provide real-time insights, enabling large and medium-sized organizations to make well-informed decisions. Onestream (NASDAQ:OS) is dedicated to investing in a productive partnership ecosystem that accelerates the adoption of its platform and facilitates more efficient implementation.
On January 16, Morgan Stanley upgraded Onestream Inc. (NASDAQ:OS) to Overweight from Equal Weight, with a price target of $37. The analyst cited the company’s superior data platform, exceptional management team, and multiple growth drivers in 2025 as reasons for the upgrade, suggesting it could outperform consensus earnings expectations. The analyst also noted that the company’s valuation is more attractive compared to peers, with potential for better valuation due to its durable mid-20s growth potential. Onestream, Inc. (NASDAQ:OS) reported strong Q3 2024 results, with a 39% year-over-year (YoY) increase in subscription revenue and an 18% rise in customer count. The company is scheduled to report its Q4 2024 earnings results on February 11.
Overall, OS ranks 6th on our list of best software infrastructure stocks to buy according to analysts. While we acknowledge the potential of OS to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
