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The Zacks Analyst Blog Highlights: Adobe Systems, AppFolio, Red Hat and Amazon
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For Immediate Release
Chicago, IL – November 14, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Adobe Systems (ADBE - Free Report) , AppFolio (APPF - Free Report) , Red Hat and Amazon (AMZN - Free Report) .
In a matter of just a few years, “the Cloud” has evolved from the new feature that your grandmother just can’t quite seem to understand to one of the main factors driving growth in the technology sector. Cloud computing is now an essential focus for software-related companies, and cloud stocks have piqued the interest of many tech-focused investors.
New technologies and changing consumer behavior have changed the shape of the technology landscape, and an industry that was once centered on the personal computer has adapted to survive in the world of mobile computing and the Cloud. The markets have been paying attention, and some of the best tech stocks have been those that are either primarily cloud-based companies, or those that have shown growth in their cloud operations.
With this in mind, we’ve highlighted three stocks that are not only showing strong cloud-related activity, but also strong fundamental metrics. Check out these three cloud stocks to buy right now:
1. Adobe Systems
Adobe Systems is a provider of graphic design, publishing, and imaging software for Web and print production. The company’s main offering is its “Creative Cloud,” which is a software-as-a-service (SaaS) product that allows users to access all of Adobe’s tools at one monthly price. The stock is currently a Zacks Rank #1 (Strong Buy).
Adobe has had a great year, but shares recently exploded when company management released optimistic guidance for its next fiscal year. In response, we’ve seen 12 positive estimate revisions for the period, and our consensus earnings estimate is now 31 cents higher.
Based on these latest figures, we now expect to see Adobe post EPS growth of 30% next year, and that’s on top of the 39% growth that’s expected this year. Current projections are also calling for sales to improve by around 20%, both this year and next year. Furthermore, the company is growing its cash flow by 48%, and management is generating a whopping $3.21 in cash per share, outpacing its industry average of just $0.68 per share.
2. AppFolio
AppFolio offers cloud-based software solutions for the property management and legal industries. The company’s AppFolio Property Manager is a leading solution for property management, while its MyCase application is ideal for practitioners and small law firms. The young company has posted its first profits in the last three quarters, surpassing the respective Zacks Consensus Estimates in each.
A company’s first profitable quarters often mean huge profits for investors, and with shares up over 75% this year, that has certainly been the case with AppFolio. Earnings and revenue have also soared this year, but that expansion is expected to continue next year, with current estimates calling for EPS growth of 30% and sales growth of 26% in the upcoming fiscal period. And on top of this, strong earnings estimate revision activity and positive earnings surprises have earned the stock a Zacks Rank #1 (Strong Buy).
3. Red Hat
Red Hat is a leading provider of open-source software and enterprise IT solutions, including cloud computing. The company has a strategic partnership with Amazon’s Web Services unit and is rapidly growing its cloud offerings. After another impressive bullish run, the stock is currently sporting a Zacks Rank #2 (Buy).
Red Hat has met or surpassed earnings estimates in every quarter that we have tracked the company, dating all the way back to early-2014. This year, the firm is looking to grow sales and earnings by around 20%. Furthermore, management is generating an impressive $2.29 in cash per share. Red Hat is also growing its cash flow by nearly 19% right now. And with shares continuously testing new 10-year highs, RHT has emerged as an interesting momentum pick recently.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Adobe Systems, AppFolio, Red Hat and Amazon
For Immediate Release
Chicago, IL – November 14, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Adobe Systems (ADBE - Free Report) , AppFolio (APPF - Free Report) , Red Hat and Amazon (AMZN - Free Report) .
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
3 Cloud Stocks to Buy Right Now
In a matter of just a few years, “the Cloud” has evolved from the new feature that your grandmother just can’t quite seem to understand to one of the main factors driving growth in the technology sector. Cloud computing is now an essential focus for software-related companies, and cloud stocks have piqued the interest of many tech-focused investors.
New technologies and changing consumer behavior have changed the shape of the technology landscape, and an industry that was once centered on the personal computer has adapted to survive in the world of mobile computing and the Cloud. The markets have been paying attention, and some of the best tech stocks have been those that are either primarily cloud-based companies, or those that have shown growth in their cloud operations.
With this in mind, we’ve highlighted three stocks that are not only showing strong cloud-related activity, but also strong fundamental metrics. Check out these three cloud stocks to buy right now:
1. Adobe Systems
Adobe Systems is a provider of graphic design, publishing, and imaging software for Web and print production. The company’s main offering is its “Creative Cloud,” which is a software-as-a-service (SaaS) product that allows users to access all of Adobe’s tools at one monthly price. The stock is currently a Zacks Rank #1 (Strong Buy).
Adobe has had a great year, but shares recently exploded when company management released optimistic guidance for its next fiscal year. In response, we’ve seen 12 positive estimate revisions for the period, and our consensus earnings estimate is now 31 cents higher.
Based on these latest figures, we now expect to see Adobe post EPS growth of 30% next year, and that’s on top of the 39% growth that’s expected this year. Current projections are also calling for sales to improve by around 20%, both this year and next year. Furthermore, the company is growing its cash flow by 48%, and management is generating a whopping $3.21 in cash per share, outpacing its industry average of just $0.68 per share.
2. AppFolio
AppFolio offers cloud-based software solutions for the property management and legal industries. The company’s AppFolio Property Manager is a leading solution for property management, while its MyCase application is ideal for practitioners and small law firms. The young company has posted its first profits in the last three quarters, surpassing the respective Zacks Consensus Estimates in each.
A company’s first profitable quarters often mean huge profits for investors, and with shares up over 75% this year, that has certainly been the case with AppFolio. Earnings and revenue have also soared this year, but that expansion is expected to continue next year, with current estimates calling for EPS growth of 30% and sales growth of 26% in the upcoming fiscal period. And on top of this, strong earnings estimate revision activity and positive earnings surprises have earned the stock a Zacks Rank #1 (Strong Buy).
3. Red Hat
Red Hat is a leading provider of open-source software and enterprise IT solutions, including cloud computing. The company has a strategic partnership with Amazon’s Web Services unit and is rapidly growing its cloud offerings. After another impressive bullish run, the stock is currently sporting a Zacks Rank #2 (Buy).
Red Hat has met or surpassed earnings estimates in every quarter that we have tracked the company, dating all the way back to early-2014. This year, the firm is looking to grow sales and earnings by around 20%. Furthermore, management is generating an impressive $2.29 in cash per share. Red Hat is also growing its cash flow by nearly 19% right now. And with shares continuously testing new 10-year highs, RHT has emerged as an interesting momentum pick recently.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.