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.
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 )
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. AppFolio has found consistent profitability, and investors have rewarded the stock with 66% gains over the past year.
APPF is currently sporting a Zacks Rank #2 (Buy), as well as an “A” grade for Growth in our Style Scores system. The stock will hope to maintain its momentum with continued bottom-line expansion, with current consensus estimates projecting EP growth of 66% on net sales growth of 27% this year.
2. Workday, Inc. ( WDAY )
Workday designs enterprise cloud applications for human resources and finance. It provides its customers—which fall in the tech, financial services, business services, healthcare, retail, and other industries—with the tools to manage critical business functions using industry-leading cloud solutions.
WDAY is holding a Zacks Rank #1 (Strong Buy) and is another explosive growth pick. Based on current analyst estimates, we expect Workday to report EPS growth of 17% and revenue growth of 26% this fiscal year. Its valuation is stretched, but the stock also looks interesting from a momentum perspective, having gained more than 40% in the past year—including 6% over the trailing four weeks.
3. Cloudera, Inc. ( CLDR )
Cloudera develops and distributes software for business data which include storage, access, management, analysis, security, search, processing and analysis applications. The stock sold off significantly after its latest earnings report, but analyst sentiment has rebounded and investors can now buy this Zacks Rank #2 (Buy) at a cheaper price.
CLDR bounced strongly off its post-earnings low and has surged more than 12% over the past month. Still, the stock has plenty of room to run before testing its 52-week high. Investors should also note that full-year EPS estimates have improved, and bottom-line growth is now expected to come in at more than 13% in 2018.
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.
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