Software-as-a-Service (SaaS) stocks have been the best performers in 2020. The transition from on-premise systems to the cloud is in motion and there’s no going back. Companies need to be more nimble now and subscribing to SaaS helps them avoid the large investments required for on-premise systems. Not only capital are locked up with the equipment, it would be difficult to reverse it when the company takes on a new direction, which could render the equipment useless. So it is a matter of time until majority of the enterprises switch to the SaaS model. There’s still a lot of investment opportunities in SaaS in case you are wondering if you are late to the game. The number of SaaS stocks have ballooned in recent years, capitalizing on the insatiable appetite of the investors. But not all SaaS companies are good and conventional investment metrics are often not the best way to analyze SaaS stocks.