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4 Cloud-Focused Stocks to Buy Amid the Coronavirus Pandemic

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The cloud computing space is benefiting from widespread digital transformation. As people are working remotely and maintaining stringent social distancing measures, cloud businesses have been gaining popularity.

The COVID-19 pandemic is making its impact felt further, with many countries still under lockdown, and more people working and learning from home. As a result, the world is becoming cloud dependent and companies are shifting data and information to technological and digital platforms to remain afloat.

What’s Favoring Cloud Players?

Cloud computing companies are making the most of the battle against the pandemic, wherein mass gatherings are strictly restricted and people are being increasingly asked to work from home.

With the increasing fear of COVID-19, there has been heightened demand for online classes, video conferencing, gaming, e-commerce shopping and remote project collaboration. Such services are easily available with the help of cloud computing technology.

Moreover, to deal with the outbreak, big-data has become one of the biggest assets for the healthcare industry. Storing and managing an enormous amount of data are of utmost importance, and cloud computing firms are emerging as key players in this regard.

With demand for cloud-based solutions growing, enterprises are turning to software companies for providing the digital infrastructure they need to keep up with the online world.

Therefore, cloud is a space that has massive growth opportunities as digital enterprise management has become a necessity to compete in any industry. This is creating more demand for web-based performance management monitoring tools that are not only scalable but also suitable for cloud-based environments.

That said, we have highlighted four cloud-focused technology stocks that may prove to be the best options for investors in the current times.

Our Picks

Zoom Video Communications, Inc. (ZM - Free Report) provides a video-first communications platform on a worldwide basis. It has gained big time from the coronavirus-induced remote working trend. Demand for its platform and solutions is expected to remain robust, as some form of social distancing will be required until a vaccine or any effective treatment for coronavirus is developed.

The company has an expected earnings growth rate of 237.1% for the current year (ending January 2021). Zoom sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zoom Video Communications, Inc. Price and Consensus

 

ServiceNow Inc. (NOW - Free Report) provides cloud computing services that automate digital workflows to accelerate enterprise IT operations. It is rapidly expanding into non-ITSM (IT service market) areas like human resource and security solutions by bringing new products and services.

The company has an expected earnings growth rate of 27.7% for the current year. The company holds a Zacks Rank #2 (Buy) at present.

ServiceNow, Inc. Price and Consensus

 

Atlassian Corporation Plc (TEAM - Free Report) is a global leader and innovator in the enterprise collaboration and workflow software space. The company offers a suite of cloud-based software solutions that helps organizations to collaborate and manage their workforce.

The company has an expected earnings growth rate of 26.7% for the current year. The company currently has a Zacks Rank #2.

Atlassian Corporation PLC Price and Consensus

 

Avalara, Inc. is a provider of cloud-based tax compliance solutions. It enables businesses of all sizes to achieve compliance with transaction taxes including sales and use, VAT, excise, communications, as well as other tax types.

The company has an expected earnings growth rate of 26.7% for the current year. The company currently carries a Zacks Rank #2.

Avalara, Inc. Price and Consensus

 

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