The pandemic altered the business landscape for virtually every market, but one industry in particular – cloud computing – has seen accelerated demand as organizations have been forced to migrate their workloads from traditional methods to digital formats.
Companies that embraced cloud adoption early on have seamlessly adapted their systems to manage the flow of data, while firms that shied away from the cloud have struggled during the pandemic to swiftly restructure their operations.
In 2020 the global cloud computing market size was valued at $247.8 billion and is expected to grow at a compound annual growth rate of nearly 20% over the next seven years. Dubbed the ‘4th Industrial Revolution’, smart technologies including artificial intelligence, big data, and mobile supercomputing are transforming the way companies conduct business.
The Zacks Internet-Software industry group contains many companies whose revenues stem from the cloud computing market. While the industry had a phenomenal 2020, this year it has taken a slight breather.
Despite the short-term setback, the Internet-Software group holds some favorable long-term characteristics such as above-average historical EPS growth (16.2% vs. 9.8% for the S&P 500) and historical sales growth (18.9% vs. 4.9% for the S&P 500).
Last quarter, nearly 75% of companies that reported earnings in this industry group either beat or met consensus estimates. Next, we’ll examine three companies within the Internet-Software group that are setting the stage for a stellar 2022.
Arlo Technologies, Inc. (ARLO - Free Report)
Arlo Technologies provides cloud infrastructure, wireless connectivity, and cutting-edge AI capabilities with a focus on delivering a unified smart home experience. Headquartered in San Jose, CA, the company’s cloud-based platform provides users with insightful statistics and visibility to help protect their homes in real-time.
ARLO, a Zacks #2 Buy stock, is showing a notable track record in terms of positive earnings surprises as you can see below. The company has seen an average surprise of over +64% over the last four quarters. ARLO most recently reported earnings for the quarter ending in September of EPS $-0.08, a +43% surprise over estimates.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
The pandemic altered the business landscape for virtually every market, but one industry in particular – cloud computing – has seen accelerated demand as organizations have been forced to migrate their workloads from traditional methods to digital formats.
Companies that embraced cloud adoption early on have seamlessly adapted their systems to manage the flow of data, while firms that shied away from the cloud have struggled during the pandemic to swiftly restructure their operations.
In 2020 the global cloud computing market size was valued at $247.8 billion and is expected to grow at a compound annual growth rate of nearly 20% over the next seven years. Dubbed the ‘4th Industrial Revolution’, smart technologies including artificial intelligence, big data, and mobile supercomputing are transforming the way companies conduct business.
The Zacks Internet-Software industry group contains many companies whose revenues stem from the cloud computing market. While the industry had a phenomenal 2020, this year it has taken a slight breather.
Despite the short-term setback, the Internet-Software group holds some favorable long-term characteristics such as above-average historical EPS growth (16.2% vs. 9.8% for the S&P 500) and historical sales growth (18.9% vs. 4.9% for the S&P 500).
Last quarter, nearly 75% of companies that reported earnings in this industry group either beat or met consensus estimates. Next, we’ll examine three companies within the Internet-Software group that are setting the stage for a stellar 2022.
Arlo Technologies, Inc. (ARLO - Free Report)
Arlo Technologies provides cloud infrastructure, wireless connectivity, and cutting-edge AI capabilities with a focus on delivering a unified smart home experience. Headquartered in San Jose, CA, the company’s cloud-based platform provides users with insightful statistics and visibility to help protect their homes in real-time.
ARLO, a Zacks #2 Buy stock, is showing a notable track record in terms of positive earnings surprises as you can see below. The company has seen an average surprise of over +64% over the last four quarters. ARLO most recently reported earnings for the quarter ending in September of EPS $-0.08, a +43% surprise over estimates.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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