In the matter of just a few years, “the Cloud” has evolved from the new feature that your grandmother just can’t quite seem to understand to one of the main factors driving growth in the computing 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 technology and changing consumer behavior has 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 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:
Adobe Systems Incorporated (ADBE) – Zacks Rank #2 (Buy)
Adobe Systems Incorporated (ADBE) is a provider of graphic design, publishing, and imaging software for Web and print production. The company’s main offering is its “Creative Cloud,” which is a software-as-a-service (SaaS) product that allows users to access all of Adobe’s tools at one monthly price.
Analysts are expecting another solid quarter from Adobe, and we’ve seen three positive earnings estimate revisions for this quarter’s earnings over the past 60 days. These revisions have moved the Zacks Consensus Estimate nine cents higher in that time.
We now expect Adobe to post earnings of 72 cents per share, which would represent EPS growth of nearly 53%.
Asure Software Inc (ASUR)- Zacks Rank #1 (Strong Buy)
Asure Software Inc (ASUR) is a provider of Web-based workforce management solutions. This is another SaaS-based company, and it has been able to successfully target the growing number of customers looking to integrate cloud computing into the workplace.
Asure is looking to maintain the momentum of its last two earnings beat, including a surprise profit that beat the Zacks Consensus Estimate by 850% two quarters ago. In its latest report, Asure edged our estimate by 43%, which sets the tone for its current-quarter estimate.
That figure has gained three cents in the last 90 days, and we now expect Asure to see EPS growth of 200% on revenue growth of nearly 47%.
Upland Software Inc (UPLD)- Zacks Rank #1 (Strong Buy)
Upland Software Inc (UPLD) is another company engaged in enterprise-level, cloud-based workforce management. Upland provides services that help boost efficiency to teams in IT, marketing, finance, and professional services, among other things.
While our Zacks Consensus Estimate still indicates that Upland will post a loss this quarter, it has moved two cents higher over the past 30 days thanks to a pair of positive estimate revisions. We also expect Upland to see revenue growth of 7%. Upland also holds “B” grades for Growth and Momentum.
The Bottom Line on “Cloud” Companies to Buy
Cloud-based companies have been some of the best performing stocks in the tech sector this year, and these cloud stocks also boast strong fundamental metrics. If you’re looking to treat your portfolio with a little gift this holiday season, these cloud stocks might be exactly what you’re looking for.
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ASURE SOFTWARE (ASUR): Free Stock Analysis Report
ADOBE SYSTEMS (ADBE): Free Stock Analysis Report
UPLAND SOFTWARE (UPLD): Free Stock Analysis Report
