Are Cloud Computing Shares the Protected Haven of Tech? 4 Shares to Strive

Miguel Morata

The cloud computing market has seen super progress as organizations migrate workloads from conventional channels to digital codecs. Companies throughout industries have quickly adopted the work-from-home mannequin to stay operational remotely, thereby growing the demand for Software program-as-a-Service (SaaS)-based options.

The worldwide cloud computing market is being propelled by rising applied sciences comparable to large information, synthetic intelligence (AI), and machine studying (ML). Furthermore, important points regarding information safety, community latency, and regulatory mandates are additionally serving to within the enlargement of cloud computing providers.

The worldwide cloud computing market is estimated to develop at a CAGR of roughly 15.8% between 2022-2028.

Whereas tech corporations are attempting to maintain their pandemic-era progress, the cloud pattern is right here to remain, with extra companies taking over digitizing their operations.

Thus, given the stable prospects of the trade, it might be clever to purchase high quality cloud computing shares Excessive Networks, Inc. (EXTR), AudioCodes Ltd. (AUDC), Viavi Options Inc. (VIAV), and Juniper Networks, Inc. (JNPR).

Excessive Networks, Inc. (EXTR)

EXTR gives software-driven networking options worldwide. It designs and develops wired and wi-fi community infrastructure gear; and software program for community administration, coverage, analytics, safety, and entry controls.

On June 7, 2022, EXTR prolonged its ExtremeCloud™ portfolio to incorporate new SD-WAN and AIOps options with digital twin capabilities that allow prospects to ship safe connectivity, deploy speedy cloud methods, and uncover actionable insights. This could increase the corporate’s buyer base.

In Might, the corporate introduced that a number of the world’s most well-known resorts and casinos are leveraging its options to optimize on line casino and resort operations and supply first-class visitor experiences. This demonstrates EXTR’s robust positioning within the trade.

EXTR’s whole internet revenues elevated 12.7% year-over-year to $285.51 million within the fiscal quarter ended March 31, 2022. Its gross revenue grew 8.4% from the year-ago worth to $161.36 million. Working earnings for the quarter got here in at $17.31 million, up 55.2% year-over-over, whereas its internet earnings per share grew 233.3% from the prior-year quarter to $0.10.

Analysts count on EXTR’s income for the fiscal 12 months ending June 2022 to come back in at $1.10 billion, indicating a rise of 9.4% year-over-year. Additionally, the corporate’s EPS is anticipated to develop 36.3% year-over-year to $0.78 in the identical interval. It surpassed the consensus EPS estimates in all of the trailing 4 quarters.

EXTR gained 15.8% over the previous month to shut yesterday’s buying and selling session at $10.25.

EXTR’s robust fundamentals are mirrored in its POWR Scores. The inventory has an general score of A, translating to Sturdy Purchase in our proprietary score system. The POWR Scores are calculated by contemplating 118 various factors, with every issue weighted to an optimum diploma.

EXTR has a B grade in Worth, Progress, and High quality. It’s ranked #2 of 53 shares within the Expertise – Communication/Networking trade.

Past what’s acknowledged above, we’ve additionally rated EXTR for Momentum, Sentiment, and Stability. Get all of the EXTR scores right here.

AudioCodes Ltd. (AUDC)

Headquartered in Lod, Israel, AUDC gives superior communications software program, merchandise, and productiveness options for the digital office.

For the fiscal quarter ended March 31, 2022, AUDC’s whole revenues elevated 12.8% year-over-year to $66.36 million. Its gross revenue grew 10.2% from the year-ago worth to $44.36 million.

Avenue expects AUDC’s income within the quarter ending September 2022 to come back in at $71.58 million, indicating a rise of 12.9% year-over-year. Its EPS is anticipated to enhance 1.8% year-over-year to $0.39. The corporate additionally beat the consensus EPS estimates in three of the trailing 4 quarters.

AUDC’s shares have gained 4.1% over the previous month to shut the final buying and selling session at $22.10.

AUDC’s sound prospects are mirrored in its POWR Scores. The inventory has an general score of A, equating to Sturdy Purchase in our POWR Scores system.

The corporate additionally has an A grade in High quality and a B in Stability and Sentiment. The inventory is ranked #1 within the Expertise – Communication/Networking trade. Click on right here to get AUDC’s Momentum, Progress, and Worth scores.

Viavi Options Inc. (VIAV)

VIAV gives community check, monitoring, and assurance options to communications service suppliers, enterprises, community gear producers, authorities, and avionics prospects worldwide. The corporate operates by way of three segments Community Enablement (NE); Service Enablement (SE); and Optical Safety and Efficiency Merchandise (OSP) segments.

On June 7, VIAV introduced the provision of ApexNow, an app integration between Viavi Observer Apex, ServiceNow IT Operations Administration (ITOM), and Telecommunications Service Operations Administration. This utility ought to guarantee user-friendliness and effectivity, which allows their joint prospects to remain forward of IT and repair points.

VIAV’s internet income elevated 4% year-over-year to $315.50 million within the fiscal third quarter ended April 2, 2022. Its earnings from operations grew 13.6% from the year-ago worth to $40.80 million, whereas its internet earnings per share improved by 14.3% year-over-year to $0.08.

VIAV’s income for the fiscal quarter ended June 2022 is anticipated to enhance 3.8% year-over-year to $322.80 million. The consensus EPS estimate of $0.23 for a similar quarter signifies a rise of three.8% year-over-year. The corporate surpassed the consensus EPS estimates in every of the trailing 4 quarters, which is spectacular.

VIAV’s shares have gained marginally intraday to shut the final buying and selling session at $13.37.

The corporate has an general score of B, translating to Purchase in our proprietary scores system. VIAV can be rated B in Progress and High quality. In the identical trade, it’s ranked #3.

Click on right here for extra POWR Scores for Worth, Stability, Momentum, and Sentiment for VIAV.

Juniper Networks, Inc. (JNPR)

JNPR designs, develops, and sells community services and products worldwide.

On July 14, JNPR launched a brand new AI-driven EX4100 collection of enterprise-grade wired entry switches and Mist AI to ship excellent efficiency, flexibility, optimized client-to-cloud person experiences, and safety.

“These newest enhancements to our AI-driven Enterprise portfolio increase our worth proposition to much more campus and department environments whereas additionally doubling down on Juniper’s distinctive AI-driven benefits throughout the whole community lifecycle, from set up and configuration to operations and troubleshooting,” stated Sudheer Matta, Group Vice President, Product Administration, AI-driven Enterprise at JNPR.

JNPR’s whole internet revenues elevated 8.7% year-over-year to $1.17 billion within the fiscal quarter ended March 31, 2022. Its working earnings improved 110.4% year-over-year to $58.50 million over the interval, whereas its internet earnings and EPS elevated 279.1% and 270% from its year-ago values to $55.70 million and $0.17, respectively.

Analysts count on JNPR’s EPS for the fiscal quarter ended June 2022 to come back in at $0.44, indicating a 3.5% enhance year-over-year. The consensus income estimate of $1.26 billion represents a year-over-year enhance of seven.3% for a similar interval. JNPR additionally beat the consensus EPS estimates in three of the trailing 4 quarters.

The inventory has gained marginally intraday to shut the final buying and selling session at $28.03.

It’s no shock that JNPR has an general score of B, equating to Purchase in our POWR Scores system. JNPR additionally has a B grade in Worth, Progress, and High quality. The inventory is ranked #8 within the Expertise – Communication/Networking trade.

Along with the POWR Ranking grades I’ve simply highlighted, you may see JNPR’s Momentum, Sentiment, and Stability scores right here.


EXTR shares had been buying and selling at $10.57 per share on Friday afternoon, up $0.32 (+3.12%). 12 months-to-date, EXTR has declined -32.68%, versus a -18.56% rise within the benchmark S&P 500 index throughout the identical interval.

Concerning the Writer: Komal Bhattar

Komal’s ardour for the inventory market and monetary evaluation led her to pursue funding analysis as a profession. Her basic method to analyzing shares helps buyers establish the very best funding alternatives. Extra…

Extra Sources for the Shares on this Article

Next Post

ComTec Options Acquires RAM Software program Techniques

by Ty Trumbull • Jul 14, 2022 New York-based ComTec Options is pushing into the U.S. Southwest with the acquisition of enterprise consultancy RAM Software program Techniques. Monetary phrases of the deal weren’t disclosed. That is expertise M&A deal quantity 638 that ChannelE2E has lined to this point in 2022. […]