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In the matter of just a few years, “the Cloud” has evolved from the new feature that your grandmother just can’t quite seem to understand to one of the main factors driving growth in the technology sector. Cloud computing is now an essential focus for software-related companies, and cloud stocks have piqued the interest of many tech-focused investors.
New technologies and changing consumer behavior have changed the shape of the technology landscape, and an industry that was once centered on the personal computer has adapted to survive in the world of mobile computing and the Cloud. The markets have been paying attention, and some of the best tech stocks have been those that are either primarily cloud-based companies, or those that have shown growth in their cloud operations.
With this in mind, we’ve highlighted three stocks that are not only showing strong cloud-related activity, but also strong fundamental metrics. Check out these three cloud stocks to buy right now:
AppFolio offers cloud-based software solutions for the property management and legal industries. The company’s AppFolio Property Manager is a leading solution for property management, while its MyCase application is ideal for practitioners and small law firms. The young company has posted its first profits in the last two quarters, surpassing the respective Zacks Consensus Estimates by triple-digit percentages in each.
For the current fiscal year, we expect Appfolio to post EPS growth of 367% and sales growth of 32%—two impressive rates that have helped the stock earn an “A” grade in the Growth category of our Style Scores system. Besides its growth prospects, Appfolio is a surging momentum pick, having already gained about 90% this year and currently resting near its 52-week high. As of right now, APPF is a Zacks Rank #1 (Strong Buy).
2. Tableau Software
Tableau specializes in visualization products focused on business intelligence. Its software solutions have the ability to create compelling graphs and graphics from complex sets of data at an impressive speed, and the company offers both a fully-managed SaaS product and an installed version that is compatible with all major cloud environments. DATA is currently a Zacks Rank #2 (Buy).
In its most recent quarter, Tableau saw revenues of $212.9 million, topping our consensus estimate of $211 million and cementing the company’s decision to focus on its subscription model. In fact, annual recurring subscription revenue climbed 175% year-over-year to $103.5 million. Looking ahead, this business will be integral to Tableau’s growth, and demand should continue to rise as adoption of cloud computing and big data analytics become the industry standard.
3. Apptio Inc.
Apptio is a provider of cloud-based technology business management software. The company’s SaaS applications are designed to assess IT service costs and communicate these costs to corporate management for planning and budgeting purposes. Apptio is yet another prime example of cloud computing’s relevance to many industries, as it helps provide affordable solutions for issues that are prevalent throughout the enterprise market.
Apptio shares have recovered from a brutal start to the year, and the stock has gained over 50% since the beginning of April. This early slump probably showed investors where this stock’s bottom is, but shares are still a good $7 below their 52-week high, so there’s room to grow before even testing a new range. What’s more, APTI is currently a Zacks Rank #2 (Buy).
Bottom Line
Cloud-based companies have been some of the best performing stocks in the tech sector this year, and these cloud stocks also boast strong fundamental metrics. If you’re looking to add tech stocks to your portfolio right now, this list is probably a good place to start.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>
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3 Cloud Stocks to Buy Right Now
In the matter of just a few years, “the Cloud” has evolved from the new feature that your grandmother just can’t quite seem to understand to one of the main factors driving growth in the technology sector. Cloud computing is now an essential focus for software-related companies, and cloud stocks have piqued the interest of many tech-focused investors.
New technologies and changing consumer behavior have changed the shape of the technology landscape, and an industry that was once centered on the personal computer has adapted to survive in the world of mobile computing and the Cloud. The markets have been paying attention, and some of the best tech stocks have been those that are either primarily cloud-based companies, or those that have shown growth in their cloud operations.
With this in mind, we’ve highlighted three stocks that are not only showing strong cloud-related activity, but also strong fundamental metrics. Check out these three cloud stocks to buy right now:
1. Appfolio, Inc. (APPF - Free Report)
AppFolio offers cloud-based software solutions for the property management and legal industries. The company’s AppFolio Property Manager is a leading solution for property management, while its MyCase application is ideal for practitioners and small law firms. The young company has posted its first profits in the last two quarters, surpassing the respective Zacks Consensus Estimates by triple-digit percentages in each.
For the current fiscal year, we expect Appfolio to post EPS growth of 367% and sales growth of 32%—two impressive rates that have helped the stock earn an “A” grade in the Growth category of our Style Scores system. Besides its growth prospects, Appfolio is a surging momentum pick, having already gained about 90% this year and currently resting near its 52-week high. As of right now, APPF is a Zacks Rank #1 (Strong Buy).
2. Tableau Software
Tableau specializes in visualization products focused on business intelligence. Its software solutions have the ability to create compelling graphs and graphics from complex sets of data at an impressive speed, and the company offers both a fully-managed SaaS product and an installed version that is compatible with all major cloud environments. DATA is currently a Zacks Rank #2 (Buy).
In its most recent quarter, Tableau saw revenues of $212.9 million, topping our consensus estimate of $211 million and cementing the company’s decision to focus on its subscription model. In fact, annual recurring subscription revenue climbed 175% year-over-year to $103.5 million. Looking ahead, this business will be integral to Tableau’s growth, and demand should continue to rise as adoption of cloud computing and big data analytics become the industry standard.
3. Apptio Inc.
Apptio is a provider of cloud-based technology business management software. The company’s SaaS applications are designed to assess IT service costs and communicate these costs to corporate management for planning and budgeting purposes. Apptio is yet another prime example of cloud computing’s relevance to many industries, as it helps provide affordable solutions for issues that are prevalent throughout the enterprise market.
Apptio shares have recovered from a brutal start to the year, and the stock has gained over 50% since the beginning of April. This early slump probably showed investors where this stock’s bottom is, but shares are still a good $7 below their 52-week high, so there’s room to grow before even testing a new range. What’s more, APTI is currently a Zacks Rank #2 (Buy).
Bottom Line
Cloud-based companies have been some of the best performing stocks in the tech sector this year, and these cloud stocks also boast strong fundamental metrics. If you’re looking to add tech stocks to your portfolio right now, this list is probably a good place to start.
Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>