Data is often referred to as the new oil. Previously, only companies with deep pockets could mine insights derived from data to make sound decisions. However, big data and various data analytics tools have now become much more widespread. Big data is a term that relates to the capture the vast volumes of data released from multiple sources within an organization.
The handling of such data is beyond the capacity of traditional data processing software, which is where data analytics comes into play. Using such insights can be beneficial for an organization that is seeking an edge over its competitors. Consistent innovations in artificial intelligence (AI) and machine learning (ML) are expected to help the big data industry flourish. According to a Fortune Business Insights report, the global big data analytics market is expected to grow at a 13.2% CAGR to $549.73 billion in 2028.
Given this backdrop, we think it could be wise to add big data stocks Splunk Inc. (SPLK), Elastic N.V. (ESTC), and Alteryx, Inc. (AYX) to one’s watchlist. Wall Street analysts expect these stocks to rise more than 40% in price in the near term.
Splunk Inc. (SPLK)
SPLK in San Francisco, Calif., provides software and cloud solutions that deliver and operationalize insights from the data generated by digital systems. The company offers Splunk Platform, a real-time data platform that consists of collection, streaming, indexing, search, reporting, analysis, machine learning, alerting, monitoring and data management solutions.
On November 17, 2021, SPLK announced its desire to achieve net-zero greenhouse gas emissions by 2050 and committed to fulfilling several short-term science-based targets by the end of fiscal 2023.
SPLK’s cloud ARR for the fiscal third quarter ended October 31, 2021, increased 75% year-over-year to $1.11 billion. The company’s total ARR came in at $2.83 billion, representing a 37% increase year-over-year. Its cloud revenue increased 68% year-over-year to $243 million.
Analysts expect SPLK’s EPS and revenue for fiscal 2023 to increase 30.7% and 18.1%, respectively, year-over-year to $1.40 and $3.01 billion. It has surpassed the Street’s EPS estimates in three of the trailing four quarters. Over the past year, the stock has declined 31.2% in price to close yesterday’s trading session at $116.96. However, Wall Street analysts expect the stock to hit $167.11 in the near term, indicating a potential 42.9% upside.
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Elastic N.V. (ESTC)
ESTC is a search company that delivers technology that enables users to search through structured and unstructured data for various consumer and enterprise applications. The Mountain View, Calif.-based company offers Elastic Stack, a software product set that ingests and stores data from various sources and formats while searching, analyzing, and visualizing.
On December 7, 2021, ESTC announced its latest enhancements across its ElasticSearch platform and solutions. The upgrades include the availability of dozens of prebuilt Elastic Agent data integrations that enable visibility into complex and distributed cloud-native service, allowing users to solve their data challenges, improve operational efficiency, and provide a better customer experience.
For its fiscal second quarter, ended October 31, 2021, ESTC’s total revenue came in at $206 million, up 42% year-over-year. Its elastic cloud revenue increased 84% year-over-year to $69 million. Also, its deferred revenue increased 26% year-over-year to $390.30 million.
For its fiscal 2023, ESTC’s EPS is expected to increase 18.9% year-over-year to $0.43. Its revenue for its fiscal year 2022 is expected to grow 36.7% year-over-year to $831.76 million. It surpassed consensus EPS estimates in each of the trailing four quarters. The stock has declined 23.1% in price over the past month to close yesterday’s trading session at $119.57. However, Wall Street analysts expect the stock to hit $184.40 in the near term, indicating a potential 54.2% upside.
Alteryx, Inc. (AYX)
Irvine, Calif.-based AYX is a self-service data analytics software providing company. It offers a subscription-based platform that enables organizations to prepare, blend, and analyze data from many sources and ease data-driven decisions.
On October 22, 2021, AYX announced the acquisition of Lore IO, a no-code AI-enabled data modeling platform that deploys analytics that adapts easily within a changing business environment. This acquisition will likely help AYX expand its portfolio further.
AYX’s annual recurring revenue for its fiscal third quarter, ended September 30, 2021, increased 29% year-over-year to $579 million. At the end of September 30, 2021, its customers totaled 7,689, up 11% year-over-year. The company’s gross profit increased 7% year-over-year for the nine months ended September 30, 2021, to $323 million.
Analysts expect AYX’s EPS for its fiscal 2022 to increase 96.4% year-over-year to $0.01. Its revenue for the quarter ending March 31, 2022, is expected to increase 25.1% year-over-year to $132.73. It surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past year, the stock has declined 48.7% in price to close yesterday’s trading session at $62.44. However, Wall Street analysts expect the stock to hit $107.75 in the near term, indicating a potential 72.6% upside.
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SPLK shares were unchanged in premarket trading Tuesday. Year-to-date, SPLK has gained 1.07%, versus a 0.58% rise in the benchmark S&P 500 index during the same period.
About the Author: Dipanjan Banchur
Since he was in grade school, Dipanjan was interested in the stock market. This led to him obtaining a master’s degree in Finance and Accounting. Currently, as an investment analyst and financial journalist, Dipanjan has a strong interest in reading and analyzing emerging trends in financial markets. More...
More Resources for the Stocks in this Article
| Ticker | POWR Rating | Industry Rank | Rank in Industry |
| SPLK | Get Rating | Get Rating | Get Rating |
| ESTC | Get Rating | Get Rating | Get Rating |
| AYX | Get Rating | Get Rating | Get Rating |
