The cloud computing market has seen tremendous growth as organizations shift workloads from traditional channels to digital formats. Businesses in various industries are rapidly adopting the work-from-home model to stay functional remotely, and thus the demand for Software-as-a-Service (SaaS)-based solutions is increasing.
The global cloud computing market is driven by emerging technologies such as big data, artificial intelligence (AI), and machine learning (ML). Moreover, critical issues related to data protection, network latency, and regulatory mandates also contribute to the expansion of cloud computing services.
The global cloud computing market is expected to grow at a CAGR of approximately 15.8% between 2022-2028.
As tech companies try to maintain their growth during the pandemic, here’s the cloud trend, with more businesses undertaking digitizing their operations.
So, given the solid prospects of the industry, it may be wise to buy high-quality cloud computing stock Extreme Networks, Inc. (EXTR), AudioCodes Ltd. (AUDC), Viavi Solutions Inc. (VIAV), and Juniper Networks, Inc. (JNPR).
Extreme Networks, Inc. (EXTR)
EXTR provides software-driven networking solutions worldwide. It designs and develops wired and wireless network infrastructure equipment; and software for network management, policy, analytics, security, and access controls.
On June 7, 2022, EXTR expanded its ExtremeCloud ™ portfolio to include new SD-WAN and AIOps solutions with digital twin capabilities that allow customers to deliver secure connections, deploy fast cloud systems, and discover actionable insights. This should expand the company’s customer base.
In May, the company announced that some of the world’s most popular resorts and casinos are using its solutions to optimize casino and resort operations and provide first-class guest experiences. This demonstrates EXTR’s strong positioning in the industry.
Total net EXTR revenues rose 12.7% year-over-year to $ 285.51 million in the fiscal quarter ended March 31, 2022. Its total profit grew 8.4% from the previous amount to $ 161.36 million. Operating income for the quarter reached $ 17.31 million, up 55.2% over the year, while net income per share grew 233.3% from the previous quarter to $ 0.10.
Analysts expect EXTR revenue for the fiscal year ending June 2022 to reach $ 1.10 billion, representing a 9.4% year-on-year increase. Also, the company’s EPS is expected to grow 36.3% year-over-year to $ 0.78 over the same period. It exceeded consensus EPS estimates for all of the following four quarters.
EXTR gained 15.8% last month to close yesterday’s trading session at $ 10.25.
The solid basis of EXTR can be seen here POWR Ratings. The stock has an overall rating of A, which translates to Strong Buy in our proprietary rating system. POWR Ratings are calculated by considering 118 different factors, each factor being weighed at the optimal level.
EXTR has a B grade in Value, Growth, and Quality. It is ranked #2 of 53 stocks Technology – Communication/Networking industry.
Beyond the above, we also rated EXTR for Momentum, Sentiment, and Stability. Get all EXTR ratings here.
AudioCodes Ltd. (AUDC)
Headquartered in Lod, Israel, AUDC provides advanced communication software, products, and productivity solutions for the digital workplace.
For the fiscal quarter ended March 31, 2022, AUDC’s total revenue rose 12.8% year-over-year to $ 66.36 million. Its total revenue grew 10.2% from the previous amount to $ 44.36 million.
Street expects AUDC revenue in the quarter ending September 2022 to reach $ 71.58 million, indicating a 12.9% year-over-year increase. Its EPS is expected to increase 1.8% year-over-year to $ 0.39. The company also beat consensus EPS estimates in three of the following four quarters.
AUDC shares gained 4.1% in the past month to close the last trading session at $ 22.10.
AUDC’s great prospects can be seen in its POWR Ratings. The stock has an overall rating of A, which is equivalent to Strong Buy in our POWR Ratings system.
The company also has an A grade in Quality and B in Stability and Sentiment. The stock is ranked #1 in the Technology – Communications/Networking industry. Click here to get the AUDC Momentum, Growth, and Value ratings.
Viavi Solutions Inc. (VIAV)
VIAV provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, governments, and avionics customers worldwide. The company operates through three Network Enablement (NE) segments; Service Enablement (SE); and Optical Security and Performance Products (OSP) segments.
On June 7, VIAV announced the availability of ApexNow, an app integration between Viavi Observer Apex, ServiceNow IT Operations Management (ITOM), and Telecommunications Service Operations Management. This application should ensure user friendliness and efficiency, enabling their joint customers to stay ahead of IT and service issues.
VIAV’s net income rose 4% year-over-year to $ 315.50 million in the fiscal third quarter ended April 2, 2022. Its revenue from operations grew 13.6% from the previous year’s value in $ 40.80 million, while net income per share improved 14.3% year-over-year to $ 0.08.
VIAV’s revenue for the fiscal quarter ended June 2022 is expected to increase 3.8% year-over-year to $ 322.80 million. The consensus EPS estimate of $ 0.23 for the same quarter indicates a 3.8% year-over-year increase. The company exceeded consensus EPS estimates in each of the following four quarters, which is impressive.
VIAV shares gained slightly intraday to close the last trading session at $ 13.37.
The company has an overall rating of B, which translates to Buy in our proprietary ratings system. VIAV is also rated B in Growth and Quality. In the same industry, it is ranked #3.
Click here for additional POWR Ratings for Value, Stability, Momentum, and Sentiment for VIAV.
Juniper Networks, Inc. (JNPR)
JNPR designs, manufactures, and sells network products and services worldwide.
On July 14, JNPR introduced the new AI-driven EX4100 series of enterprise-grade wired access switches and Mist AI to deliver exceptional performance, flexibility, optimized client-to-cloud user experience, and security.
“These latest enhancements to our AI -driven Enterprise portfolio expand our value proposition to more campus and branch environments while also doubling Juniper’s unique AI -driven advantages across the network lifecycle, from installation and configuration to operations and troubleshooting, ”said Sudheer Matta, Group Vice President, Product Management, AI-driven Enterprise at JNPR.
JNPR’s total net income rose 8.7% year-over-year to $ 1.17 billion in the fiscal quarter ended March 31, 2022. Its operating income improved 110.4% year-over-year to $ 58.50 million during the period. , while its net income and EPS rose 279.1% and 270% from its previous values to $ 55.70 million and $ 0.17, respectively.
Analysts expect JNPR’s EPS for the fiscal quarter ended June 2022 to reach $ 0.44, indicating a 3.5% increase per year. The consensus revenue estimate of $ 1.26 billion represents a year-on-year increase of 7.3% for the same period. JNPR also beat consensus EPS estimates in three of the following four quarters.
The stock gained slightly intraday to close the last trading session at $ 28.03.
Not surprisingly, JNPR has an overall rating of B, which is equivalent to Buy in our POWR Ratings system. JNPR also has a B grade in Value, Growth, and Quality. The stock is ranked #8 in the Technology – Communications/Networking industry.
In addition to the POWR Rating scores I just highlighted, you’ll find JNPR’s Momentum, Sentiment, and Stability ratings here.
EXTR shares were trading at $ 10.57 per share on Friday afternoon, up $ 0.32 (+3.12%). Year -to -date, the EXTR is down -32.68%, compared to a -18.56% increase in the benchmark S&P 500 index over the same period.
About the Author: Komal Bhattar
Komal’s passion for the stock market and financial analysis led him to pursue investment research as a career. His core approach to analyzing stocks helps investors determine the best investment opportunities. More…
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