Big Data refers to vast and diverse collections of structured, unstructured and semi-structured data that inundate businesses on a day-to-day basis. It encompasses the volume of information spurred by digital technology advancements, the velocity or speed at which it is created and collected, and the variety or scope of the data points being covered (known as the "three V's" of Big Data). Over the past few years, three additional V's have gained precedence - value, variability and veracity.
The big data space focuses on companies that process, store and analyze data providing data mining, transformation, visualization and predictive analytics tools. Here we select five such companies — Datadog Inc. DDOG, PROS Holdings Inc. PRO, Varonis Systems Inc. VRNS, Palantir Technologies Inc. PLTR and HubSpot Inc. HUBS.
Utility of Big Data
Big Data is utilized in advanced analytics applications like predictive modeling and machine learning to solve business problems and make informed decisions. The latest high-end digital mobility advancements such as the Internet of Things (IoT) and artificial intelligence (AI), have resulted in rapidly growing data. Consequently, new big data tools have emerged to collect, process, and analyze data to derive maximum value out of it.
Big data offers better decision-making and risk management on part of corporates. Big data has also increased agility and innovation, making operations more efficient, resulting in improved customer experiences.
Buy Five Big Data Stocks for 2025
These stocks have strong revenue and earnings growth potential for 2025 and have seen positive earnings estimate revisions for next year in the last 30 days. Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks year to date.
Zacks Investment Research
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Datadog Inc.
Datadog's third-quarter 2024 top line benefited from strength in customer demand for offerings in modern observability, cloud security, software delivery and cloud service management. DDOG had 3,490 customers with an annual run rate of $100K or more at the end of the quarter.
DDOG’s dollar-based retention rate was in the mid-110s in the third quarter as customers increased their usage and adopted more products. Contributions from a solid cloud partner base, including Google Cloud, Microsoft Azure and Amazon Web Services, remain a key growth driver besides an expanding portfolio. We expect 2024 net sales of DDOG to increase 24.9% from 2023.
Datadog has an expected revenue and earnings growth rate of 20.1% and 10%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 4.3% in the last 30 days.
PROS Holdings Inc.
PROS Holdings is a leading provider globally of pricing and revenue optimization software products, specializing in price analytics, price execution, and price optimization. By using PRO’s software products, companies gain insight into their pricing strategies, identify pricing-based profit leaks, optimize their pricing decision-making and improve their business processes and financial performance.
PRO’s software products implement advanced pricing science, which includes operations research, forecasting and statistics. PRO also provides a range of services that include analyzing a company's current pricing processes and implementing software products to improve pricing performance.
PROS Holdings has an expected revenue and earnings growth rate of 9.2% and 32.4%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.1% in the last 30 days.
Varonis Systems Inc.
Varonis Systems provides an innovative software platform that allows enterprises to map, analyze, manage and migrate their unstructured data in North America, Europe, the Middle East, Africa, and internationally. VRNS’ products include DatAdvantage, DataPrivilege, IDU Classification Framework, Data Transport Engine and DatAnywhere.
VRNS sells its products to small and medium businesses, and large multinational enterprises in financial services, consumer and retail, industrial, healthcare, and energy and utilities industries.
Varonis Systems has an expected revenue and earnings growth rate of 11.7% and 29.3%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 6.3% in the last 30 days.
Palantir Technologies Inc.
Palantir Technologies builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally.
Lately, PLTR’s commercial business has gathered pace beside its traditional government contracts. This was primarily due to PLTR’s aggressive venture in the AI space. Last year, Palantir Technologies launched its Artificial Intelligence Platform (AIP), an AI-powered system that helps customers quickly concentrate and analyze data and discover how it can help advance their business goals.
AIP provides unified access to open-source, self-hosted, and commercial large language models that can transform structured and unstructured data into LLM-understandable objects and turn organizations' actions and processes into tools for humans and LLM-driven agents.
Palantir Technologies has an expected revenue and earnings growth rate of 24.5% and 24.9%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 2.1% in the last seven days.
HubSpot Inc.
HubSpot reported strong third-quarter 2024 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate driven by strong user engagement across all segments. Integration of HubSpot AI, which includes cutting-edge features such as AI assistance, AI agents, AI insights and ChatSpot, is driving more value to customers.
HUBS is witnessing steady multi-hub adoption from enterprise customers in the premium market, while the growing adoption of inbound applications is a tailwind. HUBS has significant scope in cross-selling its products to the existing customer base. The One HubSpot initiative is a key growth driver. HUBS’ App Marketplace offers a customer-centric solution by making it simple for companies to find and seamlessly connect the integrations to grow their businesses.
HubSpot has an expected revenue and earnings growth rate of 16% and 15.1%, respectively, for next year. The Zacks Consensus Estimate for next-year earnings has improved 4.3% in the last 30 days.
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