4 Cloud Stocks That Will Continue To Fly High In 2021

Markedly, digital ad spending surpassed traditional media buying last year. Additionally, citing reports of eMarketer, WNIP revealed that the digital ad market is estimated to reach $225 billion by 2024 in the United States alone, up from this year’s nearly $150 billion. This gives The Trade Desk plenty of room to expand, and marketers need to reach consumers beyond Google and Facebook.

The digital advertising company currently sports a Zacks Rank #1 (Strong Buy). 

The Zacks Consensus Estimate for 2020 earnings is pegged at $4.99 per share, having been revised 58.4% upward in 60 days’ time. For 2021, the consensus mark for earnings has moved 25.4% north to $4.98 per share over the same time frame. The company’s shares have been up a whopping 255.7% year to date, outperforming the Zacks Internet Services industry’s growth of 33.5%.

YTD Price Performance: TTD

Dropbox (DBX Quick Quote DBX - Free Report) is riding on the growing demand for its cloud-based team collaboration tools through which users can share files, photos, videos, songs and spreadsheets. This Zacks Rank #2 (Buy) company’s strong focus on product innovation and introduction of solutions like updated Dropbox Spaces, HelloSign, Passwords, Vault, and Computer Backup are anticipated to expand its user base.

Solid demand for cloud storage, triggered by the coronavirus-led work-from-home wave, has been acting as a tailwind for the company. Further, integration with leading applications like Zoom, Slack, and Atlassian will likely expand the Dropbox paying user base.

Additionally, Dropbox’s innovative “Virtual First” initiative, under which its employees will work from home the majority of the time and will meet once in a while for team collaboration, is expected to lower cost. The company’s plan to shift to hiring in low-cost regions is likely to boost profitability.

The Zacks Consensus Estimate for 2020 earnings stands at 88 cents per share, up 14.3% in the past 60 days. The consensus mark for its 2021 earnings is pegged at $1 per share, having been revised 9.9% upward over the same time frame. The stock has spiked 37.4% in the year-to-date period, outperforming the Internet Services industry’s rise of 33.5%.

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