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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:
1. 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.
Adobe Systems is a provider of graphic design, publishing, and imaging software for Web and print production. The company’s main offering is its “Creative Cloud,” which is a software-as-a-service (SaaS) product that allows users to access all of Adobe’s tools at one monthly price. The stock currently has a Zacks Rank #2 (Buy).
ADBE shares are up over 47% year-to-date and could be poised to break even higher soon. We’ve seen 11 positive estimate revisions for the company’s upcoming earnings report over the past 60 days, and Adobe has already proven itself to be a consistent earnings over-performer. On top of this, our current consensus estimate is calling for sales to grow 21% this quarter—a rate that should have investors giddy.
Progress develops software and cloud-based products that assist clients with application deployment, application management, data connectivity, web content management, and predictive analytics. The company has shifted its focus to cloud computing and is looking to expand its cloud subscription offerings. Currently, PRGS is a Zacks Rank #1 (Strong Buy).
Progress has surpassed the Zacks Consensus Estimate for earnings in four consecutive quarters, and the stock is now up over 25% this year. In the past 30 days, we’ve seen two positive estimate revisions for the company’s current-year and next-year earnings. Progress has recorded a RoE of 20.3%, which outpaces its industry average of 8.9%. Also, the company is generating $2.08 per share in cash, smashing the industry average of $0.68. Progress also offers a respectable 1.24% dividend.
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!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>
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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. 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.
2. Adobe Systems (ADBE - Free Report)
Adobe Systems is a provider of graphic design, publishing, and imaging software for Web and print production. The company’s main offering is its “Creative Cloud,” which is a software-as-a-service (SaaS) product that allows users to access all of Adobe’s tools at one monthly price. The stock currently has a Zacks Rank #2 (Buy).
ADBE shares are up over 47% year-to-date and could be poised to break even higher soon. We’ve seen 11 positive estimate revisions for the company’s upcoming earnings report over the past 60 days, and Adobe has already proven itself to be a consistent earnings over-performer. On top of this, our current consensus estimate is calling for sales to grow 21% this quarter—a rate that should have investors giddy.
3. Progress Software Corporation (PRGS - Free Report)
Progress develops software and cloud-based products that assist clients with application deployment, application management, data connectivity, web content management, and predictive analytics. The company has shifted its focus to cloud computing and is looking to expand its cloud subscription offerings. Currently, PRGS is a Zacks Rank #1 (Strong Buy).
Progress has surpassed the Zacks Consensus Estimate for earnings in four consecutive quarters, and the stock is now up over 25% this year. In the past 30 days, we’ve seen two positive estimate revisions for the company’s current-year and next-year earnings. Progress has recorded a RoE of 20.3%, which outpaces its industry average of 8.9%. Also, the company is generating $2.08 per share in cash, smashing the industry average of $0.68. Progress also offers a respectable 1.24% dividend.
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!
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius. Click for details >>