Workflow
Office 365 Commercial
icon
Search documents
Buy 5 Big Data Behemoths to Benefit From Enormous Market Opportunity
ZACKS· 2025-09-15 12:21
Industry Overview - The global big data market is projected to grow from $199.63 billion in 2024 to $573.47 billion by 2033, with a CAGR of 12.44% [2] - The big data analytics market is expected to increase from $277.14 billion in 2024 to $1,045.26 billion by 2033, at a CAGR of 13.7% [3] Company Highlights NVIDIA Corp. (NVDA) - NVIDIA reported strong second-quarter fiscal 2026 earnings, with quarterly sales expected to reach $54 billion, +/- 2% [8] - The company anticipates that resuming H20 chip sales in China could add $2 to $5 billion in the third quarter [8] - NVIDIA's revenue and earnings growth rates are expected to be 56.3% and 48.5%, respectively, for the current year [12] Palantir Technologies Inc. (PLTR) - Palantir's second-quarter earnings surpassed $1 billion for the first time, driven by its AI-powered data mining and analytics [13] - The company has increased its full-year revenue guidance to between $4.142 billion and $4.150 billion [16] - Expected revenue and earnings growth rates for Palantir are 45.6% and 58.5%, respectively, for the current year [16] Microsoft Corp. (MSFT) - Microsoft has capitalized on AI business momentum, with strong demand for Office 365 and Azure cloud services [17][18] - Azure achieved over $75 billion in annual revenues with a growth rate of 34% [20] - Expected revenue and earnings growth rates for Microsoft are 14% and 12.5%, respectively, for the current year [21] International Business Machines Corp. (IBM) - IBM is experiencing healthy demand for hybrid cloud and AI solutions, bolstered by its acquisition of Hakkoda [23] - The company’s expected revenue and earnings growth rates are 6.4% and 7.7%, respectively, for the current year [26] F5 Inc. (FFIV) - F5 is benefiting from strong software growth and increasing demand for application security in multi-cloud environments [27] - The company has made six acquisitions over the past five years to enhance its security capabilities [28] - Expected revenue and earnings growth rates for F5 are 3.9% and 4%, respectively, for the next year [30]
5 Blue-Chip Stocks to Buy as the Dow Achieves New Milestones
ZACKS· 2025-08-25 12:45
Economic Outlook - Fed Chairman Jerome Powell indicated a tepid possibility of interest rate cuts in 2025 during his speech at the Jackson Hole Symposium [1] - The CME FedWatch shows a 75% probability of a 25 basis-point cut in September and a 71% chance of two cuts this year, with the current Fed Fund rate at 4.25-4.5% [2] Market Reaction - Following Powell's speech, major stock indexes rallied: Dow increased by 1.9%, S&P 500 by 1.5%, and Nasdaq Composite by 1.9%, with the Russell 2000 jumping 3.9% [3] - The Dow closed at a record high of 45,631.74, reaching an intraday high of 45,757.84 [3] Investment Recommendations - Investment in blue-chip stocks with favorable Zacks Rank is advised, including JPMorgan Chase & Co. (JPM), The Goldman Sachs Group Inc. (GS), Johnson & Johnson (JNJ), The Walt Disney Co. (DIS), and Microsoft Corp. (MSFT) [4] Sector Trends - Anticipation of a Fed rate cut and high valuations in the technology sector have led to a shift towards rate-sensitive cyclical sectors such as utilities, industrials, financials, energy, materials, and health care [5] Dow Performance Analysis - The Dow is currently above its 50-day and 200-day moving averages, indicating a potential long-term uptrend [6][7] Company Insights: JPMorgan Chase & Co. - JPMorgan Chase is expected to see net interest income (NII) growth with a projected CAGR of 2.9% by 2027, driven by business expansion and loan demand [10] - The company has a technology budget of $18 billion for the year, emphasizing AI to boost efficiency [11] - Expected revenue and earnings growth rates for the current year are -0.2% and -1.3%, respectively, with a 0.9% improvement in earnings estimates over the last 30 days [12] Company Insights: The Goldman Sachs Group Inc. - Goldman Sachs is benefiting from growth in its Global Banking & Markets division and has maintained a leading position in M&A activity [13][14] - The company has an expected revenue growth rate of 6.3% and earnings growth rate of 12.6% for the current year, with a 3.3% improvement in earnings estimates over the last 60 days [16] Company Insights: Johnson & Johnson - Johnson & Johnson's MedTech division is focused on AI technologies for surgical robotics and has developed an AI-enabled ecosystem called Ottava [17][18] - Expected revenue and earnings growth rates for the current year are 5.2% and 8.8%, respectively, with a 0.1% improvement in earnings estimates over the last 30 days [19] Company Insights: The Walt Disney Co. - Disney is experiencing growth in Domestic Parks & Experiences revenues, with a slight decline in international locations [20] - As of June 28, 2025, Disney+ had 127.8 million paid subscribers, with a projected increase of over 10 million subscriptions by the fourth quarter of fiscal 2025 [21][23] - Expected revenue and earnings growth rates for the current year are 3.9% and 17.7%, respectively, with a 0.1% improvement in earnings estimates over the last 30 days [25] Company Insights: Microsoft Corp. - Microsoft is capitalizing on AI momentum and strong demand for its cloud services, with Azure holding approximately 20-24% of the global cloud market share [26][27] - The company has an expected revenue growth rate of 13.9% and earnings growth rate of 12.5% for the current year, with a 0.1% improvement in earnings estimates over the last 30 days [30]
Buy MSFT Amid Double-Digit Short-Term Upside on AI and Cloud Strength
ZACKS· 2025-08-13 12:45
Core Insights - Microsoft Corp. is leveraging artificial intelligence (AI) momentum and Copilot adoption while expanding its Azure cloud infrastructure, leading to significant revenue growth in its Productivity and Business Processes segment [1][2] Financial Performance - Microsoft reported exceptional fourth-quarter fiscal 2025 results, surpassing Zacks Consensus Estimates across all key metrics, highlighting its strong position in the cloud and AI markets [2] - For Q1 fiscal 2026, the Zacks Consensus Estimate indicates revenues of $75.38 billion, a 14.9% year-over-year increase, and EPS of $3.64, reflecting a 10.3% year-over-year improvement [3] - The fiscal 2026 revenue estimate stands at $320.3 billion, suggesting a 13.7% year-over-year increase, with EPS projected at $15.32, indicating a 12.3% year-over-year improvement [4] - For fiscal 2027, revenues are estimated at $366.3 billion, a 14.4% year-over-year increase, with EPS of $17.89, reflecting a 16.7% year-over-year improvement [5] Market Position and Growth - Azure's annual revenue reached $75 billion, growing 34%, and the platform now operates over 400 datacenters across 70 global regions, holding a 20-24% share of the global cloud market [7][8][9] - Microsoft's Copilot products have achieved significant traction, with 100 million monthly active users, showcasing the company's ability to monetize AI investments effectively [10] Valuation and Investment Outlook - Microsoft trades at higher valuations compared to peers and the S&P 500, justified by its accelerating Azure growth and leadership in AI [11][12] - The average short-term price target from brokerage firms suggests a potential increase of 17.6% from the last closing price of $529.24, indicating a favorable risk-reward ratio [13] Competitive Advantages - Microsoft benefits from strong enterprise relationships and integration with its Office suite and Windows OS, creating significant switching costs for customers [14] - Early investments in AI, particularly through partnerships with OpenAI, have positioned Azure as a preferred platform for AI workloads [15] - The company's focus on hybrid cloud solutions and enterprise integration supports consistent growth and sustainability of its competitive advantages [16] Investment Thesis - Microsoft is well-positioned to grow and potentially exceed current valuation multiples, with Azure showing acceleration and AI monetization still in early stages [18] - The company holds a Zacks Rank 2 (Buy) and presents an attractive entry point for growth-oriented investors despite premium valuations [19]
Buy 5 Big Data Behemoths to Strengthen Your Portfolio in 2H 2025
ZACKS· 2025-07-22 12:26
Core Insights - The article discusses the significance of Big Data in business operations, highlighting its role in processing, storing, and analyzing vast amounts of data to enhance decision-making and operational efficiency [1][3][4]. Company Summaries HubSpot Inc. (HUBS) - HubSpot is recognized for its cloud-based customer relationship management platform, experiencing steady adoption from enterprise customers and solid client additions due to pricing optimization [7][10]. - The integration of AI features, such as AI assistance and insights, is enhancing customer value and driving growth [8][9]. - Expected revenue and earnings growth rates for HubSpot are 15.4% and 15%, respectively, for the current year [10]. Dell Technologies Inc. (DELL) - Dell is benefiting from strong demand for AI servers, securing $12.1 billion in AI server orders, which has built a robust backlog [11][12]. - The company is expanding its cloud services and leveraging partnerships with major players like NVIDIA and Google to enhance its offerings [13][14]. - Expected revenue and earnings growth rates for Dell are 8.8% and 16.2%, respectively, for the current year [14]. Adobe Inc. (ADBE) - Adobe has implemented AI applications across its products, including the introduction of generative AI-driven tools like Adobe Firefly [15][17]. - The company is diversifying into digital marketing services through its AI-driven cloud platform, enhancing its data mining capabilities [16]. - Expected revenue and earnings growth rates for Adobe are 9.5% and 11.8%, respectively, for the current year [17]. Microsoft Corp. (MSFT) - Microsoft is capitalizing on AI momentum and expanding its Azure cloud infrastructure, with strong demand for Office 365 driving revenue growth [18][19]. - The company is enhancing its Intelligent Cloud revenues through Azure AI development and strategic execution [19][20]. - Expected revenue and earnings growth rates for Microsoft are 12.4% and 11.8%, respectively, for the current year [20]. Intel Corp. (INTC) - Intel is making strategic decisions to strengthen its position in the AI sector, with new products featuring improved power efficiency for AI workloads [21][22]. - The company is focused on cost-cutting measures and optimizing its portfolio to foster sustainable growth [22][23]. - Expected revenue and earnings growth rates for Intel are -4.3% and over 100%, respectively, for the current year [23].
GOOGL, META, MSFT: 3 Promising AI Giants With Attractive Valuations
ZACKS· 2025-05-12 14:10
Core Insights - The technology sector, particularly generative AI, is driving significant growth in the stock market from January 2023 to January 2025 [1][2] Group 1: Alphabet Inc. (GOOGL) - GOOGL is experiencing strong growth in cloud and search, with first-quarter 2025 revenue growth in search remaining in double digits [3] - The company has surpassed 270 million paid subscriptions, with YouTube and Google One as key contributors [3] - GOOGL's AI model, Gemini, is enhancing user experience across its platforms, including Google Bard and Search Generative Experience [4] - Vertex usage increased 20 times in 2024, indicating strong developer adoption of GOOGL's AI models [5] - GOOGL's first-quarter 2025 earnings were $2.81 per share, exceeding estimates, with revenues of $76.49 billion, surpassing expectations by 1.3% [7] - For 2025, revenue estimates are $324.35 billion, reflecting a 9.9% year-over-year increase, with an EPS of $9.43, up 17.3% year-over-year [8] - GOOGL's forward P/E is 16.21X, lower than the industry average of 18.88X and the S&P 500's 18.62X [9] - The short-term price target for GOOGL suggests a potential increase of 30.4% from the last closing price of $152.75, with a maximum upside of 57.1% [10] Group 2: Meta Platforms Inc. (META) - META is benefiting from user growth, particularly in the Asia Pacific region, with increased engagement across its platforms [11] - The company's AI-driven platform is improving ad delivery efficiency, contributing to a 16.2% year-over-year increase in advertising revenues to $41.39 billion [12] - META's first-quarter 2025 earnings were $6.43 per share, beating estimates, with revenues of $42.31 billion, exceeding expectations by 2.6% [15] - For 2025, revenue estimates are $185.8 billion, indicating a 13% year-over-year improvement, with an EPS of $25.52, up 7% year-over-year [17] - META's forward P/E is 23.22X, lower than the industry average of 28.50X and the S&P 500's 18.62X [18] - The short-term price target for META indicates a potential increase of 16.3% from the last closing price of $592.49, with a maximum upside of 57.8% [19] Group 3: Microsoft Corp. (MSFT) - MSFT's fiscal third-quarter 2025 earnings and revenues exceeded estimates, driven by AI business strength and Azure cloud growth [20] - The company reported earnings of $3.46 per share and revenues of $70.06 billion, surpassing consensus estimates by 8.1% and 2.5%, respectively [24] - For fiscal 2025, revenue estimates are $278.6 billion, reflecting a 13.7% year-over-year increase, with an EPS of $13.30, up 12.7% year-over-year [25] - MSFT's forward P/E is 32.74X, higher than the industry average of 17.57X and the S&P 500's 18.62X [26] - The short-term price target for MSFT suggests a potential increase of 15.8% from the last closing price of $438.73, with a maximum upside of 42.7% [27]
Buy These 5 Cloud Computing Stocks to Strengthen Your Portfolio
ZACKS· 2025-05-09 14:30
Core Insights - The article highlights five cloud computing-centric stocks that are expected to deliver strong returns in the short term, emphasizing their earnings and revenue growth potential for 2025 [3][4]. Group 1: Cloud Computing Overview - Cloud computing provides on-demand access to computing resources over the Internet, transitioning from traditional on-premises infrastructure to cloud-based solutions [1]. - Organizations can access shared resources from cloud service providers, which reduces operating costs and enhances productivity and scalability [2]. Group 2: Stock Picks and Performance - The selected stocks include Five9 Inc. (FIVN), Affirm Holdings Inc. (AFRM), Microsoft Corp. (MSFT), Juniper Networks Inc. (JNPR), and Tyler Technologies Inc. (TYL), all showing strong earnings growth potential [3][4]. - Each stock has received positive earnings estimate revisions in the last 60 days and carries a Zacks Rank of 1 (Strong Buy) or 2 (Buy) [4]. Group 3: Company-Specific Insights Five9 Inc. (FIVN) - Five9 provides intelligent cloud software for contact centers, offering a virtual platform for customer service and sales functions [8]. - The company is experiencing growth due to the adoption of AI tools, with an expected revenue growth rate of 9.6% and earnings growth of 10.9% for the current year [11][10]. Affirm Holdings Inc. (AFRM) - Affirm has diversified revenue streams and expects revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by partnerships and expanding into new markets [12][13]. - The expected revenue growth rate is 37.1%, with earnings growth projected at 96.4% for the current year [14]. Microsoft Corp. (MSFT) - Microsoft reported strong fiscal Q3 2025 results, driven by AI business growth and Azure cloud infrastructure [15][16]. - The expected revenue growth rate is 13.7%, with earnings growth of 12.7% for the current year [17]. Juniper Networks Inc. (JNPR) - Juniper Networks reported strong Q1 2025 results, benefiting from demand for AI-driven enterprise solutions and data center virtualization [18][19]. - The expected revenue growth rate is 7.3%, with earnings growth of 21.5% for the current year [20]. Tyler Technologies Inc. (TYL) - Tyler Technologies is capitalizing on the public sector's shift to cloud-based systems and the hybrid working trend, with an expected revenue growth rate of 8.9% and earnings growth of 15.6% for the current year [21][22].
Cloud & AI Power Microsoft's Fiscal Q3 Earnings: ETFs to Tap
ZACKS· 2025-05-01 14:30
Core Insights - Microsoft reported strong third-quarter fiscal 2025 results, beating earnings and revenue estimates, primarily driven by growth in cloud computing and artificial intelligence [1][3] - The company's shares surged by up to 8% in after-market trading, adding over $200 billion to its market capitalization [1] Earnings Performance - Earnings per share reached $3.43, surpassing the Zacks Consensus Estimate of $3.20, marking an 18% increase year-over-year [3] - Revenues grew by 13% year-over-year to $70.07 billion, exceeding the consensus estimate of $68.38 billion [3] Cloud and AI Growth - Intelligent Cloud revenues increased by 21% year-over-year to $26.8 billion, while overall Microsoft Cloud revenue rose by 20% year-over-year to $42.4 billion [4] - Azure, Microsoft's flagship computing platform, experienced a 33% year-over-year growth [4] - The CFO indicated that Azure is expected to grow up to 35% in the current quarter, adjusting for currency fluctuations [5] Future Outlook - Microsoft anticipates revenues of $70 billion and earnings per share of $3.46 for the fiscal fourth quarter of 2025 [6] ETFs with Microsoft Exposure - iShares Dow Jones US Technology ETF (IYW) has a 15.2% allocation to Microsoft, with AUM of $17.8 billion and a Zacks ETF Rank 1 [7] - MSCI Information Technology Index ETF (FTEC) allocates 13.9% to Microsoft, with AUM of $11.5 billion and a Zacks ETF Rank 1 [8] - Vanguard Information Technology ETF (VGT) has a 13.8% allocation to Microsoft, managing about $76.7 billion in assets and also holds a Zacks ETF Rank 1 [9] - iShares Top 20 U.S. Stocks ETF (TOPT) includes Microsoft with a 13.5% allocation, with an asset base of $205.8 million [11] - Select Sector SPDR Technology ETF (XLK) also has a 13.5% allocation to Microsoft, with AUM of $64.4 billion and a Zacks ETF Rank 1 [12]
3 Software Stocks to Watch Amid Troubled Industry Trends
ZACKS· 2025-03-27 15:40
Core Insights - The Zacks Computer Software industry is positioned to benefit from the global digital transformation, particularly through cloud transition and advancements in AI and machine learning [1][3][4] Industry Overview - The Zacks Computer Software industry encompasses companies providing software applications in AI, cloud computing, digital media, customer relationship management, cybersecurity, and more [2] Trends Influencing the Industry - Increased enterprise spending on AI and cloud computing is expected to drive growth, with a projected 14.2% growth in software by 2025 due to generative AI hardware upgrades [3][4] - The demand for cybersecurity software is rising due to increased cyber threats, leading to a focus on cloud security and performance monitoring tools [5] Macroeconomic Factors - Global macroeconomic challenges and supply chain volatility are concerns, with potential impacts on software pricing and spending, particularly among small and medium-sized businesses [6] Industry Performance - The Zacks Computer Software industry ranks 135, placing it in the bottom 45% of over 246 Zacks industries, indicating dull near-term prospects [7][8] - The industry has underperformed compared to the broader Zacks Computer and Technology sector and the S&P 500, declining 2% over the past year while the S&P 500 and sector increased by 10.5% and 10.4%, respectively [9] Valuation Metrics - The industry is currently trading at a forward 12-month P/E ratio of 28.19X, higher than the S&P 500's 20.92X and the sector's 24.25X [11] Company Highlights - **ACI Worldwide (ACIW)**: Expected revenue growth of 10% in 2024, with adjusted EBITDA of $466 million up 18% and cash flow from operations up 113% [14][15] - **Open Text Corporation (OTEX)**: Focused on cloud, security, and AI, with fiscal 2025 earnings projected at $3.86 per share [18] - **Microsoft (MSFT)**: Dominates the PC software market with over 73% market share, fiscal 2025 earnings expected at $13.08 per share, indicating a year-over-year growth of 10.9% [20][22]