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3 Top Cloud Computing Stocks to Buy on the Dip

The surge in COVID-19 cases has yet again deferred the return-to-office plans, pushing companies to continue with remote and hybrid working. Therefore, companies are investing heavily in their cloud infrastructure to keep operating efficiently.

According to Gartner, cloud spending will exceed 45% of all enterprise IT spending by 2026. Also, the global cloud computing market is expected to reach $211.4 billion by 2030, growing a CAGR of 19%.

Therefore, fundamentally strong cloud computing stocks Microsoft Corporation (MSFT – Get Rating), Oracle Corporation (ORCL – Get Rating), and Commvault Systems, Inc. (CVLT – Get Rating) could be ideal picks now. The recent price dips in these stocks offer attractive entry points.

Microsoft Corporation (MSFT – Get Rating)

MSFT has a market capitalization of $2.37 trillion. The company is ranked 15 in the 2021 Fortune 500 ranking list. Also, in 2021 MSFT had been recognized as a leader in Forrester Wave for Content Platforms.

This month, MSFT India launched the latest Surface Pro X with Wi-Fi. This new model is affordable and the thinnest 13-inch Surface device, designed for Windows 11. Also, this model should provide more flexible options to its users.

MSFT’s revenue increased 21.9% year-over-year to $45.32 billion in the fiscal first quarter ended September 30, 2021. The company’s gross margin grew 21.1% from the year-ago value to $31.67 billion. Its operating income rose 27.5% from the prior-year quarter to $20.24 billion. Also, the company’s net income increased 47.6% year-over-year to $20.51 billion.

Analysts expect MSFT’s revenue for fiscal 2022 to be $197 billion, representing a 17.2% growth year-over-year. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. MSFT’s EPS is estimated to grow 14.5% in fiscal 2021 and 14.4% in fiscal 2022. The stock has gained 44.8% over the past year and is currently trading 9.9% below its 52-week high of $349.67, which it hit on November 22, 2021.

MSFT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

Also, the stock has a B grade for Sentiment, Stability, and Quality. We’ve also graded MSFT for Momentum, Value, and Growth. Click here to access all of MSFT’s ratings. MSFT is ranked #15 of 167 stocks in the Software – Application industry.

Oracle Corporation (ORCL – Get Rating)

ORCL offers worldwide products and services that address enterprise information technology environments. The company’s Oracle cloud software as a service includes Oracle Fusion cloud enterprise resource planning (ERP), Oracle Fusion cloud enterprise performance management, Oracle Fusion cloud supply chain and manufacturing management, and other services.  Government agencies, educational institutions, and resellers are ORCL’s primary users.

Last month, ORCL acquired…


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