Cowen shared with its clients the firm's best software stock picks going into third-quarter earnings season.
The firm cited the performance of the iShares North American Tech-Software ETF, which is up 38 percent this year through Monday, beating the S&P 500's 14 percent gain.
"Growth fundamentals remain healthy in software, and the perceived secular winners continue to lead the pack with respect to share price performance," the firm's software research team wrote Tuesday. "While valuation multiples have further expanded, we don't believe we have yet reached a point of meaningful investor fatigue or concern."
Here are four outperform-rated stocks that Cowen recommended with their price targets.