Chicago, IL – December 18, 2024 – Zacks.com announces the list of stocks featured on the Analyst Blog. Every day, Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks that have recently appeared on the blog include: Five9 Inc. FIVN, NetScout Systems Inc. NTCT, Parsons Corp. PSN, Booz Allen Hamilton Holding Corp. BAH and Okta Inc. OKTA.
Cloud computing refers to the on-demand seamless access to computing resources such as servers, storage, databases, networks, software, analytics and intelligence via the Internet (the cloud) based on a pay-per-use pricing model. It marks a paradigm shift from traditional on-premises infrastructure storage to remote cloud-based storage facilities and relies heavily on virtualization and automation technologies.
Instead of purchasing, owning, and maintaining physical data centers and servers, organizations can access a virtual pool of shared resources from a cloud service provider when needed. This reduces operating costs, increases productivity with greater flexibility and improves scalability with higher economies of scale.
We’ve narrowed our search to five cloud computing-focused stocks that will deliver great returns in the short term. These are: Vijf9 Inc., NetScout Systems Inc., Parsons Corp., Booz Allen Hamilton Holding Corp. And Okta Inc.
Cloud computing is a system that mainly consists of three services: software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS). SaaS offers customers a license for a software application that uses a pay-as-you-go model or on-demand.
IaaS delivers operating systems to servers and storage via IP-based connectivity as part of an on-demand service. PaaS is a platform for creating software delivered over the Internet.
These stocks have strong earnings and revenue growth potential through 2025. Additionally, they have seen positive 2025 earnings estimates over the past 60 days. Each of our picks currently carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see it The complete list of today’s Zacks #1 Rank stocks can be found here.
Zacks Rank #1 Five9 provides intelligent cloud contact center software in the United States, India and internationally. FIVN offers a virtual contact center cloud platform that delivers a suite of applications that enable the breadth of contact center-related customer service, sales and marketing functions.
FIVN’s platform includes interactive virtual agents, agent assistance, workflow automation, workforce engagement management, AI insights and AI summaries. It makes it possible to manage and optimize customer interactions across voice, chat, email, web, social media and mobile channels directly or through the application programming interfaces.
FIVN saw its subscription revenue increase 20% in the third quarter of 2024, while total revenue rose 15%. FIVN posted an adjusted EBITDA margin of 20%, allowing it to generate operating cash flow of $41 million. Management has raised its 2025 outlook.
Five9 has projected revenue and earnings growth of 10.4% and 8.2%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 3.2% over the past 60 days.
The average short-term price target among brokerage firms represents an increase of 22.4% from the last closing price of $42.61. The broker’s price target is currently between $40 and $67. This indicates a maximum increase of 57.2% and a decrease of 6.1%.
NetScout Systems Inc.
Zacks Rank #1 NetScout Systems is a leading provider of business assurance – a powerful combination of service assurance, cybersecurity and business intelligence solutions – for today’s most demanding service providers, enterprise and government networks.
NTCT’s Adaptive Service Intelligence technology continuously monitors the service delivery environment to identify performance issues and provides visibility into network-based security threats, allowing teams to quickly resolve issues that could cause business disruption or impact the user experience. NTCT delivers unparalleled service visibility and protects the digital infrastructure that supports our connected world.
NetScout Systems has projected revenue and earnings growth of 10.4% and 8.2%, respectively, for 2025. The Zacks Consensus Estimate for 2025 has improved 3.2% over the past 60 days.
The average short-term price target among brokerage firms represents an upside of 34.1% from the last closing price of $22.69. The broker’s price target is currently between $22 and $38. This indicates a maximum increase of 67.5% and a decrease of 3%.
Parsons Corp.
Zacks Rank #1 Parsons is a provider of technology-driven solutions. PSN focuses on the defense, intelligence and critical infrastructure markets. PSN provides integrated solutions and services in North America, the Middle East and internationally. PSN operates through the Federal Solutions and Critical Infrastructure segments.
PSN provides technical design and engineering services and software spanning cybersecurity, intelligence, defense, military training, connected communities, physical infrastructure and mobility solutions.
Parsons expects revenue and profit growth of 6.8% and 11.9% respectively for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 2.4% over the past 30 days.
The average short-term price target among brokerage firms represents an increase of 22.7% from the last closing price of $97.92. The broker’s price target is currently between $101 and $130. This indicates a maximum increase of 32.8% and no decrease.
Booz Allen Hamilton Holding Corp.
Zacks Rank #2 Booz Allen Hamilton Holding offers a solid investment option for those seeking stability, as the company is driven by long-term government contracts and a strong reputation in defense and cybersecurity. BAH’s focus on operational efficiency and investments in artificial intelligence and cybersecurity have positioned the company for sustainable growth.
BAH is benefiting from its Vision 2020 strategy, which has accelerated organic sales growth, strengthened profitability and delivered significant workforce and order book growth. BAH’s VoLT strategy focuses on integrating speed, leadership and technology into the transformation process.
Booz Allen Hamilton Holding expects sales and earnings growth of 12.6% and 13.6%, respectively, for the current year (ending March 2025). The Zacks Consensus Estimate for current-year earnings has improved 0.6% over the past 30 days.
The average short-term price target among brokerage firms represents an increase of 32.6% from the last closing price of $135.56. The broker’s price target is currently between $151 and $210. This indicates a maximum increase of 54.9% and no decrease.
Okta Inc.
Zacks Rank #2 Okta operates as an identity partner in the United States and internationally. OKTA offers a range of products and services used to manage and secure identities, such as Single Sign-On, which allows users to access applications in the cloud or on-premises from different devices.
OKTA’s Adaptive Multi-Factor Authentication provides a layer of security for cloud, mobile, web applications and data, while API Access Management enables organizations to secure APIs. Access Gateway allows organizations to extend Workforce Identity Cloud, and Okta Device Access allows end users to securely log in to devices with Okta credentials. OKTA also offers Universal Directory, a cloud-based system for storing and securing user, application and device profiles for an organization.
Okta has projected revenue and earnings growth of 6.8% and 4.9%, respectively, for the next fiscal year (ending January 2026). The Zacks Consensus Estimate for next year’s earnings has improved 2.5% over the past 30 days.
The average short-term price target among brokerage firms represents an increase of 26% from the last closing price of $84.76. The broker’s price target is currently between $75 and $140. This indicates a maximum increase of 65.2% and a decrease of 11.5%.
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Past performance is no guarantee of future results. Inherent in every investment is the possibility of loss. This material is provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold any security. No recommendation or advice is given as to whether an investment is suitable for a particular investor. It should not be assumed that investments in identified and described securities, companies, sectors or markets have been or will be profitable. All information is current as of the date hereof and is subject to change without notice. The views or opinions expressed may not reflect those of the company as a whole. Zacks Investment Research does not engage in investment banking, market making or securities asset management activities. These returns are from hypothetical portfolios consisting of stocks with a Zacks Rank = 1 that were rebalanced monthly with no transaction fees. These are not the returns of actual stock portfolios. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance figures shown in this press release.
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