Even though cloud-based service providers are vulnerable to cyber-attacks, governments and businesses have been spending billions of dollars on cloud-based services to facilitate the ongoing digital transformation and remote working. According to a Synergy Research Group report, cloud infrastructure spending reached $42 billion in the second quarter of 2021…
Investors’ interest in the cloud industry is evidenced by the WisdomTree Cloud Computing Fund’s (WCLD) 12.5% gain over the past three months versus the SPDR S&P 500 ETF’s (SPY) 4.9% gains. With continuous innovation in artificial intelligence (AI) and machine learning (ML), the cloud industry is expected to continue growing. According to a Fortune Business Insights report, the global cloud computing market is expected to grow at a 17.9% CAGR between 2021 – 2028.
So, we think it could be wise to bet on the shares of established cloud-based companies Veeva Systems Inc. (VEEV – Get Rating), Teradata Corporation (TDC – Get Rating), and Brightcove Inc. (BCOV – Get Rating). They each have the potential to capitalize on the industry’s growth.
VEEV provides cloud-based software solutions for the life sciences industry. Its offerings include Veeva Commercial Cloud, a suite of software, data, and analytics solutions; and Veeva Vault, a cloud-based enterprise content and data management application for managing commercial functions. VEEV is based in Pleasanton, Calif.
VEEV completed the acquisition of Learnaboutgmp today. Learnaboutgmp is a leading provider of accredited GxP training for life sciences. The company’s senior director of Vault Training, Kent Malmros, said, “By bringing together industry-leading learning technology and content, we aim to help customers drive more strategic training programs that improve job competency and compliance.”
The company’s revenue surged 29% year-over-year to $433.60 million for its fiscal first quarter ended April 30, 2021. Its non-GAAP operating income grew 40% year-over-year to $181.40 million, while its non-GAAP net income increased 40% year-over-year to $146.90 million. VEEV’s non-GAAP EPS came in at $0.91, up 37.9% year-over-year.
Analysts expect VEEV’s EPS and revenue to increase 18.4% and 24.4%, respectively, year-over-year to $3.48 and $1.82 billion in its fiscal year 2022. In addition, it surpassed the Street’s EPS estimates in each of the trailing four quarters. Over the past year, the stock has gained 25.8% to close yesterday’s trading session at $332.78.
VEEV’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
The stock has an A grade for Quality, and a B grade for Growth and Sentiment. Within the Medical – Services industry, VEEV is ranked #20 of 81 stocks. To see the additional POWR Ratings for VEEV (Stability, Value, and Momentum), click here.
Dayton, Ohio-based Hybrid cloud analytics software provider TDC’s solutions and services comprise software, hardware, and related business consulting and support services. It offers Teradata Vantage primarily, which is an analytics platform. The company serves various industries, such as financial services, government, retail, and telecommunications.
On May 4, 2021, TDC announced a set of enhancements for Teradata Vantage on Alphabet Inc.’s (GOOGL) Google Cloud, making it easier for its consumers to use the services. This move could…
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