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3 Cloud Stocks to Buy in the Top-Rated Zacks Internet-Software Industry
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The increasing need for cloud-related services currently has the Zacks Internet-Software Industry in the top 19% of over 250 Zacks industries.
As one of the trendiest spaces in tech here are several cloud-related stocks ithat were recently added to the Zacks Rank #1 (Strong Buy) list this week.
AppFolio (APPF - Free Report) : After blasting third-quarter earnings expectations in late October, AppFolio’s stock stands out in terms of growth and momentum. Providing cloud-based software solutions for property management and legal industries, AppFolio’s Q3 earnings of $0.59 per share came in 47% above estimates of $0.40 a share.
AppFolio also surpassed top-line estimates with Q3 sales of $165.44 million beating expectations by 6%. More impressive, Q3 earnings soared from EPS of $0.11 a share in the prior year quarter with sales climbing 32% from $125.08 million a year ago.
Annual earnings are now forecasted to skyrocket to $1.62 per share in fiscal 2023 versus an adjusted loss of -$0.02 a share in 2022. Even better, FY24 earnings are projected to expand another 94% to $3.15 per share. In correlation with such lofty growth and expansion, AppFolio’s stock has now soared over +90% this year.
Image Source: Zacks Investment Research
Cloudflare (NET - Free Report) : With its stock up +43% in 2023, Cloudflare has started to gain some nice momentum after surpassing Q3 top and bottom line expectations last Thursday.
As a global cloud services provider that delivers a suite of integrated products including website and application security, Q3 earnings of $0.16 per share reassuring surpassed estimates of $0.10 a share with sales of $335.6 million outpacing estimates of $330.5 million. Year over year, Cloudflare’s earnings surged 167% from EPS of $0.06 a share in Q3 2022 with sales climbing 32% from the prior year quarter.
Illustrating impactful demand Cloudflare is expecting high double-digit percentage growth on its top and bottom lines in fiscal 2023 and FY24. With the EPS figures below it's noteworthy that total sales are now projected to soar 32% this year and climb another 28% in FY24 to $1.64 billion which further illustrates Cloudflare’s lucrative earnings potential.
Image Source: Zacks Investment Research
Datadog ((DDOG - Free Report) ): Rounding out the list is Datadog which notably landed the Zacks Bull of the Day further echoing its strong buy rating.
Datadog’s growth is compelling as a monitoring and analytics platform for developers, operating over 400 integrations including public cloud, private cloud, on-premise hardware, databases, and third-party software.
Surpassing Q3 expectations on Tuesday, Datadog posted EPS of $0.45 which topped estimates of $0.34 a share by 32% with sales of $547.54 million coming in 4% better than expected. Third quarter earnings soared 95% from $0.23 per share a year ago with sales up 25% from the prior year quarter. Datadog’s stock is up a very respectable +36% YTD with it most noteworthy that annual earnings are now forecasted to climb 34% in FY23 and leap another 14% in FY24 at $1.51 per share.
Image Source: Zacks Investment Research
Bottom Line
The growth of cloud services has been remarkable and investing in AppFolio, Cloudflare, and Datadog's stock is starting to look like a very viable way to cash in on the broader expansion of the internet-software realm.
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3 Cloud Stocks to Buy in the Top-Rated Zacks Internet-Software Industry
The increasing need for cloud-related services currently has the Zacks Internet-Software Industry in the top 19% of over 250 Zacks industries.
As one of the trendiest spaces in tech here are several cloud-related stocks ithat were recently added to the Zacks Rank #1 (Strong Buy) list this week.
AppFolio (APPF - Free Report) : After blasting third-quarter earnings expectations in late October, AppFolio’s stock stands out in terms of growth and momentum. Providing cloud-based software solutions for property management and legal industries, AppFolio’s Q3 earnings of $0.59 per share came in 47% above estimates of $0.40 a share.
AppFolio also surpassed top-line estimates with Q3 sales of $165.44 million beating expectations by 6%. More impressive, Q3 earnings soared from EPS of $0.11 a share in the prior year quarter with sales climbing 32% from $125.08 million a year ago.
Annual earnings are now forecasted to skyrocket to $1.62 per share in fiscal 2023 versus an adjusted loss of -$0.02 a share in 2022. Even better, FY24 earnings are projected to expand another 94% to $3.15 per share. In correlation with such lofty growth and expansion, AppFolio’s stock has now soared over +90% this year.
Image Source: Zacks Investment Research
Cloudflare (NET - Free Report) : With its stock up +43% in 2023, Cloudflare has started to gain some nice momentum after surpassing Q3 top and bottom line expectations last Thursday.
As a global cloud services provider that delivers a suite of integrated products including website and application security, Q3 earnings of $0.16 per share reassuring surpassed estimates of $0.10 a share with sales of $335.6 million outpacing estimates of $330.5 million. Year over year, Cloudflare’s earnings surged 167% from EPS of $0.06 a share in Q3 2022 with sales climbing 32% from the prior year quarter.
Illustrating impactful demand Cloudflare is expecting high double-digit percentage growth on its top and bottom lines in fiscal 2023 and FY24. With the EPS figures below it's noteworthy that total sales are now projected to soar 32% this year and climb another 28% in FY24 to $1.64 billion which further illustrates Cloudflare’s lucrative earnings potential.
Image Source: Zacks Investment Research
Datadog ((DDOG - Free Report) ): Rounding out the list is Datadog which notably landed the Zacks Bull of the Day further echoing its strong buy rating.
Datadog’s growth is compelling as a monitoring and analytics platform for developers, operating over 400 integrations including public cloud, private cloud, on-premise hardware, databases, and third-party software.
Surpassing Q3 expectations on Tuesday, Datadog posted EPS of $0.45 which topped estimates of $0.34 a share by 32% with sales of $547.54 million coming in 4% better than expected. Third quarter earnings soared 95% from $0.23 per share a year ago with sales up 25% from the prior year quarter. Datadog’s stock is up a very respectable +36% YTD with it most noteworthy that annual earnings are now forecasted to climb 34% in FY23 and leap another 14% in FY24 at $1.51 per share.
Image Source: Zacks Investment Research
Bottom Line
The growth of cloud services has been remarkable and investing in AppFolio, Cloudflare, and Datadog's stock is starting to look like a very viable way to cash in on the broader expansion of the internet-software realm.