The bull market is in year 10 and looking a bit aged. And as we enter Q1 earnings season it turns out that the average company is projected to post a modest earnings decline.
This means that there is a growth shortage…but those stocks with the best growth prospects are likely to outperform. And no group is experiencing more widespread growth than those effectively using the cloud.
Here are 5 impressive cloud-based stocks that combine the catalysts of a POWR Rating of A (Strong Buy) and expected earnings growth north of 20% per year. (Discover all the A rated POWR Stocks at https://stocknews.com/best-stocks/)
Shares have more than doubled in the past couple years. This is no surprise given that Workday is at the nexus of some of the hottest trends. Big data + cloud computing to help with human resources. For as much as shares have soared of late, top analysts are still pounding the table for more including a street high $250 target.
Some similarities to Workday, in this case they are using the cloud to help with business automation. That formula has been good for a 3X rise in shares since the start of 2017. The outlook calls for 28% earnings growth going forward, which should help NOW propel to even greater heights.
This is our 3rd stock floating on the cloud. Shopify’s strength is their ecommerce platforms to help companies sell more online. This is still very much a growth opportunity with earnings slated to rise 24% a year for several years to come. They are riding a streak of 14 straight beat and raise quarters. The trend is definitely their friend.
You know who they are…and what they do. That’s because they are considered the best of breed provider of sales, CRM and marketing based software solutions. For as much as they have grown over the years, analysts are still projecting 23% growth per year through the middle of next decade. No wonder 5 Star analyst Brian Peterson of Raymond James proudly waves a street high target of $200.
The 4 stocks above are all providing various software services on the cloud. However, someone has to help build the networks to effectively support the cloud…Enter ANET. After a mighty stumble during the Q4 correction, shares are racing to new highs once again. Given the ample 20%+ growth profile going forward you understand why shares are likely to stay on the ascent.
All 5 of these stocks (ANET, CRM, NOW, SHOP and WDAY) are currently enjoying a POWR Rating of A – Strong Buy. To see the other stocks currently enjoying this superior rating go to: https://stocknews.com/best-stocks/
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks. More...