Over the years, the dynamics of the software industry, the way organizations conduct their businesses and people connect with each other have changed, thanks to technological progress and innovation.

As technology continues its rapid invasion into every corner of human existence, the need for improved software has increased manifold. The last few years witnessed breakthroughs in cloud computing and artificial intelligence (AI) technology, chip shrinking technology, self-driving cars, personal assistants, high-speed Internet and home automation, thus setting the stage for strong growth in the  software industry.

With the U.S. economy rebounding, as evident from the recently released improved economic data for GDP, the Consumer Confidence Index, unemployment rate and factory activity data, we believe that there are tremendous growth opportunities for software stocks in 2017.

Notably, as per Gartner Inc. (IT - Free Report) , worldwide spending on software is expected to increase 6% year over year and reach $333 billion in 2016. The independent research firm also predicts that next year the industry will witness even higher growth of 7.2% to reach $357 billion. This is much higher than the projected growth rate of 2.9% for entire tech industry spending, which is likely to touch $3.5 trillion in 2017.

As software promises a bright future for 2017, we believe adding some of these stocks to your portfolio will help boost your returns.

4 Software Stocks with Solid Potential

With the help of our style score system, we have picked four software stocks that have performed well so far this year and have the potential to keep the momentum going in the next year. They also have a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy), a VGM Style Score of “A” or “B”, and low P/E multiple than the industry average. You can see the complete list of today’s Zacks #1 Rank stocks here.

F5 Networks Inc. (FFIV - Free Report) is a leading provider of integrated Internet traffic and content management solutions designed to improve the availability and performance of mission-critical Internet-based servers and applications. The stock carries a Zacks Rank #2 and has a VGM Style Score of “B”. Moreover, F5 Networks currently trades at a forward P/E multiple of 22.3x, which is lower than the industry average of 35.7x. Year-to-date, the company has gained 50% compared with the Zacks categorized Computer-Software Services industry’s average return of just 4.3%.

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VMware Inc. (VMW - Free Report) provides virtualization solutions from the desktop to the data center. The stock carries a Zacks Rank #2 and has a VGM Style Score of “B”. Moreover, VMware currently trades at a forward P/E multiple of 25.3x, which is significantly lower than the industry average of 35.7x. Year-to-date, the company has gained 41.6% compared with the Computer-Software Services industry’s average return of just 4.3%.

NIC Inc. (EGOV - Free Report) is a provider of Internet-based, electronic government services that help governments use the Internet to reduce costs and provide a higher level of service to businesses and citizens. The stock carries a Zacks Rank #2 and has a VGM Style Score of “B”. Moreover, NIC currently trades at a forward P/E multiple of 31.5x, which is significantly lower than the industry average of 35.7x. Year-to-date, the company has gained 23.7% compared with the Computer-Software Services industry’s average return of just 4.3%.

Amaya, Inc. (AYA - Free Report) offers technology-based products and services in the gaming industry. It operates through business-to-consumer and business-to-business segments. The stock carries a Zacks Rank #2 and has a VGM Style Score of “B”. Moreover, Amaya currently trades at a forward P/E multiple of 8.1x, which is significantly lower than the industry average of 35.7x. Year-to-date, the company has gained 11.6% compared with the Computer-Software Services industry’s average return of just 4.3%.

Software companies will continue to transform our world with each passing year. So, if you don’t want to be left behind, make sure you’re investing in quality software stocks.