5 Stocks to Watch on Continued Demand for Cloud Computing – Yahoo Finance

Cloud computing has been witnessing rapid adoption over the years as it offers businesses and organizations certain advantages over traditional methods of storing and accessing data, like from on-site servers. Since, in case of cloud computing, data and information are stored on remote servers, businesses and organizations dont have to spend additional money in installing and maintaining costly hardware. Moreover, cloud computing allows businesses to remain unperturbed about how much storage and other resources they require since such requirements can be easily upgraded or downgraded on the cloud.

Another important benefit of cloud computing is the ability to collaborate more efficiently on projects. It is easier for employees of an organization to access data and information stored on the cloud from anywhere, simply with the help of an Internet connection. Moreover, employees can access such information from smart devices like a smartphone or tablet. This is why cloud computing saw an accelerated demand last year as the outbreak of the coronavirus compelled businesses to shift to a remote working model.

However, even as we move beyond the pandemic, the benefits that cloud computing offers should allow it to see continued adoption in the future as well. In fact, Gartner estimated in a report that the worldwide end-user spending on public cloud services is set to increase 23.1% in 2021 and reach $332.3 billion, from $270 billion in 2020. Markedly, Sid Nag, the research vice president at Gartner, stated in the report that emerging technologies such as containerization, virtualization and edge computing are becoming more mainstream and driving additional cloud spending. Meanwhile, a separate report from Fortune Business Insights stated that the global cloud computing market is set to witness a CAGR of 17.9% from 2021 to 2028.

Interestingly, cloud computing also seems to go a long way in ensuring a sustainable future. Notably, a report by the International Data Corporation stated that the continued adoption of cloud computing could prevent carbon dioxide emission of more than 1 billion metric tons between 2021 and 2024, due to factors like increased efficiency of aggregated compute resources.

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The benefits that cloud computing is offering to businesses and organizations are manifold, including affordability and the ability to access data from anywhere. Hence, this seems like the right time to look at companies that can benefit from the continued adoption of cloud computing. Notably, we have selected five such stocks that carry a Zacks Rank #2 (Buy) or 3 (Hold). You can see the complete list of todays Zacks #1 Rank (Strong Buy) stocks here.

Alphabet Inc.s GOOGL Google has its Google Cloud segment which offers infrastructure and data analytics platforms, collaboration tools, and other services for enterprise customers. The company currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings increased 29.1% over the past 60 days. The companys expected earnings growth rate for the current year is 52.6%.

Dropbox, Inc. DBX provides a collaboration platform that allows individuals, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan for premium features. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 6.4% over the past 60 days. The companys expected earnings growth rate for the current year is 43%.

DocuSign, Inc. DOCU offers cloud-based software and provides e-signature solution that enables businesses to digitally prepare, sign, act on, and manage agreements. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 25.4% over the past 60 days. The companys expected earnings growth rate for the current year is 86.7%.

Microsoft Corporation MSFT offers Azure, which is a cloud platform; Intelligent Cloud segment that licenses SQL and Windows Servers, Visual Studio, System Center, and related CALs; GitHub that provides a collaboration platform and code hosting service for developers, and so on. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 5.8% over the past 60 days. The companys expected earnings growth rate for the current year is 35.4%.

Amazon.com, Inc. AMZN has its cloud platform, namely, Amazon Web Services which offer functionalities like compute power, database storage, and so on. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 15.3% over the past 60 days. The companys expected earnings growth rate for the current year is 36.6%.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportMicrosoft Corporation (MSFT) : Free Stock Analysis ReportAmazon.com, Inc. (AMZN) : Free Stock Analysis ReportAlphabet Inc. (GOOGL) : Free Stock Analysis ReportDocuSign Inc. (DOCU) : Free Stock Analysis ReportDropbox, Inc. (DBX) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

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5 Stocks to Watch on Continued Demand for Cloud Computing - Yahoo Finance