3 Cloud Stocks to Buy Right Now

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.

3 Cloud Stocks to Buy Right Now

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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:

Cloud Stocks to Buy Right Now: Workday, Inc. (WDAY)

Workday (NASDAQ:WDAY) 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.

Cloud Stocks to Buy Right Now: Workday, Inc. (WDAY)

Source: Workday

WDAY is holding a Zacks Rank #2 (Buy) and is certainly an 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 37% to its full-year EPS estimates within the past quarter. This means analyst sentiment has remained positive recently.

Cloud Stocks to Buy Right Now: Adobe Systems Incorporated (ADBE)

Adobe Systems (NASDAQ: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. The stock currently has a Zacks Rank #1 (Buy).

Cloud Stocks to Buy Right Now: Adobe Systems Incorporated (ADBE)

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ADBE has been on an absolute tear lately, surging more than 70% in the past year. Interestingly enough, however, the stock sold off a bit after its latest earnings beat, giving investors a unique opportunity to buy as it continues to rebound.

Shares are now trading at their lowest forward earnings multiple in a year. Plus, the company has plenty of expansion opportunity left. Earnings growth is expected to reach 53.6% in the current fiscal year, and Adobe is projected to see a long-term annualized EPS growth rate of more than 16% in the coming years.

Cloud Stocks to Buy Right Now: Progress Software Corporation (PRGS)

Progress Software (NASDAQ:PRGS) develops software and cloud-based products that assist clients with application deployment, application management, data connectivity, web content management, and predictive analytics.

The company has shifted its focus to cloud computing and is looking to expand its cloud subscription offerings. Currently, PRGS is a Zacks Rank #2 (Buy).

In its recently-reported quarter, the firm surpassed earnings estimates for the seventh-consecutive period, inspiring some positive estimate revisions for upcoming quarters. This is a stock to love based on its earnings growth, with consensus estimates calling for EPS expansion of 21% this quarter and 31% for the full fiscal year. But shares are also trading at an attractive 15.3x forward 12-month earnings.

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.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2020.

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