- 14 июня, 23:41
- Zacks Investment Research
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 (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 100% 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. AppFolio has also recently become cash positive and is seeing quadruple-digit cash flow growth right now.
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 #2 (Buy) and is another explosive growth pick. Based on current analyst estimates, we expect Workday to report EPS growth of 23% and revenue growth of 26% this fiscal year. Its valuation is stretched, but the stock also looks interesting from an earnings momentum perspective, having added 36% to its full-year EPS estimates within the past month. This means analyst sentiment has remained positive recently.
3. Western Digital Corporation (WDC)
Western Digital is one of the world’s largest memory storage solutions companies. The stock is a cloud play because cloud computing has created massive demand for data storage. Moreover, Western Digital has attempted to make cloud storage a reality for individual consumers through its “MyCloud” product line.
WDC is currently sporting a Zacks Rank #1 (Strong Buy). It trades at an attractive 5.7x forward 12-month earnings, and its PEG of 0.3 implies investors are also getting the stock at dirt-cheap levels based on its expected growth rate. Income-focused investors will also that WDC is cash healthy and currently offers a dividend yield of about 2.4%.
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Western Digital Corporation (WDC): Free Stock Analysis Report
Workday, Inc. (WDAY): Free Stock Analysis Report
AppFolio, Inc. (APPF): Free Stock Analysis Report
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