Cloud Stock Picks: MSFT, CRM, PEGA, NOW

"Salesforce (CRM) remains well positioned for resilience as a prime beneficiary of digital transformation while also successfully integrating its Slack acquisition. Microsoft (MSFT) earnings report will indicate results within the guidance range due to the strengthening of the U.S. Dollar and PC supply chain issues. Finally, Pegasystems (PEGA) is a key I.T. vendor for large enterprises in financial services, insurance, communications, and healthcare. It's transitioning rapidly from on-premise deployments to cloud, which is driving customer demand with more rapid time-to-value," says Steve Koenig. "If your fear is that we are going into a recession, software is where you want to be. Both Microsoft (MSFT) and Service Now (NOW) have excellent balance sheets," adds Dan Romanoff.