History Predicts Nasdaq Growth in 2024: Top 5 Software Growth Stocks to Buy Before It Happens (Part-2)

ServiceNow's P/S ratio of 17.7 is close to its long-term average. I think ServiceNow is undervalued and underrated among prominent SaaS investments.

3. Salesforce Salesforce (NYSE: CRM) led the Dow Jones last year. Salesforce's acquired businesses make it unique. These deals initially excited investors, but integration and sluggish monetization gradually soured them. Salesforce may have found its new opportunity as IT budgets allocate more money to AI.

The startup markets itself as an AI-powered ecosystem for workplace productivity using MuleSoft, Tableau, and Slack. Due to AI's impact on business IT stacks, Salesforce is growing faster in its early stages. Salesforce is going through a renaissance, and its full-spectrum workplace automation platform offers more advanced technologies than its competitors, making it well-positioned to grow.

4. Datadog Datadog (NASDAQ: DDOG) is a rising cloud computing company. The organization provides cloud monitoring to protect data.

Datadog's revenue rose 27% to $2.1 billion in 2023. While sales growth is expected to decrease in the coming years, management wants higher operational profits. I'll accept slight sales decline for long-term profitability. Datadog stock is trading at 21.8 P/S, far below its 10-year average of 31. As Datadog matures and becomes lucrative, this may be a good time to buy stock.

5. MongoDB MongoDB (NASDAQ: MDB) is my final pick. MongoDB has 46,400 clients in its fiscal third quarter of 2024, which ended Oct. 31, 2023, up 19% year over year.

MongoDB recovered from losses by accelerating client acquisition and 30% top-line growth. MongoDB generated $59.4 million in free cash flow for the nine months ending Oct. 31, 2023. By comparison, the company's first nine months of 2022 free cash flow was - $48.6 million.

MongoDB trades below its 10-year average at 19.4 P/S. MongoDB's development prospects are good given the $189 billion database software industry predicted by 2030. It may be a good moment to buy MongoDB stock and hold it long-term.