Zacks Thematic Screens lets you dive into 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you.

For those interested in viewing the Thematic lists, please click here >>> Thematic Screens – Zacks Investment Research.

Let’s take a closer look at the ‘Cloud Computing’ theme and analyze a few top-ranked stocks within, including Amazon (AMZN Quick QuoteAMZN - Free Report) and Arista Networks (ANET Quick QuoteANET - Free Report) .

Cloud Computing Overview

Cloud computing refers to the on-demand seamless access of computing resources such as servers, storage, databases, networking, software, analytics, and intelligence over the Internet (the cloud) on a pay-per-use pricing model.

It marks a paradigm shift from traditional on-premises infrastructure storage to remote cloud-based storage facilities and relies heavily on virtualization and automation technologies. Instead of buying, owning, and maintaining physical data centers and servers, organizations access a virtual pool of shared resources from a cloud service provider on an as-needed basis.

This lowers operating costs, increases productivity with greater agility and flexibility, and improves scalability with higher economies of scale.

Amazon Flexes AWS Strength

Amazon shares reflect an excellent opportunity for investors to obtain exposure to cloud computing thanks to Amazon Web Services (AWS). AWS is the dominant player in the cloud computing market, flexing a significant market share globally. It provides various services, including computing power, storage, databases, and AI/ML tools.

Earnings expectations across the board have moved higher, reflecting an optimistic outlook from analysts. The $4.74 Zacks Consensus EPS estimate suggests 63% growth year-over-year. The stock sports the highly-coveted Zacks Rank #1 (Strong Buy).

Image Source: Zacks Investment Research

Arista Networks Sports Bullish Outlook

Arista Networks is an industry leader in data-driven, client-to-cloud networking for large data centers, campus, and routing environments. Analysts have taken a bullish stance across the board concerning the EPS outlook, helping position the stock nicely as a current Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

The company again posted strong results in its latest release, enjoying margin expansion alongside strong growth in both EPS and sales. Please note that the margin chart below is on a trailing twelve-month basis.

Image Source: Zacks Investment Research

Bottom Line

Thematic investing has emerged as a powerful way for investors to sync their portfolios with emerging trends. A mix of long-term and short-term themes is increasingly dictating which companies lead as economies expand and markets shift.

While stocks in each theme aren't direct recommendations, they offer a solid starting point. Leverage the Zacks Rank and other metrics to identify the best stocks for your strategy. Each featured stock comes with a Zacks report, giving you the tools to analyze performance and potential.

Both stocks above – Amazon (AMZN Quick QuoteAMZN - Free Report) and Arista Networks (ANET Quick QuoteANET - Free Report) – are components of the Zacks Cloud Computing Thematic Screen.