In a matter of just a few years, “the Cloud” has evolved from a budding new tech feature 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.
Of course, recent bouts of market-wide volatility have battered these high flyers, but if the bullish momentum of 2019’s first few weeks continues, investors might find that cloud stocks are among tech’s hottest picks once again.
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. Veeva Systems Inc. (VEEV - Free Report)
Veeva makes cloud-based solutions for the pharmaceutical and life sciences industries. Its main offerings are presented in a software-as-a-service model and delivers industry-specific tools for CRM, content management, and many other enterprise applications. Shares of Veeva currently hold a Zacks Rank #1 (Strong Buy).
VEEV has emerged as a hot growth and momentum stock over the past year, adding more than 55%—even after recent market-wide pullbacks—amid strong earnings improvements. The firm is projected to finish its current fiscal year with earnings growth of 70% and has a long-term expected growth rate of 19.5%. Veeva is also generating cash flow growth in excess of 86.6% currently.
2. Attunity Ltd. (ATTU - Free Report)
Attunity is a provider of software solutions that enable access, management, sharing, and distribution of data across enterprise platforms and the Cloud. Simply put, Attunity customers have real-time access to a plethora of data and information whenever it’s needed. The firm works closely with trusted cloud leaders like AWS, Cloudera, and Microsoft (MSFT - Free Report) .
ATTU is sporting a Zacks Rank #2 (Buy). Attunity will report earnings soon, and consensus estimates for the to-be-announced quarter are up two cents over the past 90. Full-year and next-year EPS estimates are also higher, suggesting that analysts are more optimistic about the company’s earnings outlook.
Attunity has already proven it can top these estimates, too. In its most recent report, ATTU delivered earnings of 20 cents per share against estimates of just three cents. Now, current-year growth estimates are calling for revenue and earnings to improve by 35% and 550%, respectively.
3. Cloudera Inc. (CLDR - Free Report)
Cloudera is a provider of cloud-based big data solutions. The firm delivers an open-source distribution platform that enables efficient and secure data management and analytics. Cloudera is also focused on being scalable across large organizations, and its client list includes Facebook (FB - Free Report) and Google (GOOGL - Free Report) .
This stock has been a bit of a rollercoaster since debuting in April 2017, but a clear path closer to profitability and strong revenue growth make this look attractive right now. Per share losses are expected to improve 46% in the current fiscal year, and the company has a long-term projected earnings growth rate of 8%. Earnings estimates have also been revised higher recently, lifting CLDR to a Zacks Rank #1 (Strong Buy).
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