Chicago, IL – December 18, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in 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 of computing resources such as servers, storage, databases, networking, software, analytics and intelligence over the Internet (the cloud) 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 buying, owning and maintaining physical data centers and servers, organizations access a virtual pool of shared resources on an as-needed basis from a cloud service provider. This lowers operating costs, increases productivity with greater agility and flexibility, and improves scalability with higher economies of scale.
We have narrowed our search to five cloud computing-centric stocks that are set to provide stellar returns in the short term. These are: Five9 Inc., NetScout Systems Inc., Parsons Corp., Booz Allen Hamilton Holding Corp. and Okta Inc.
Cloud computing is a system primarily comprising three services: software-as-a-service (SaaS), infrastructure-as-a-service (IaaS), and platform-as-a-service (PaaS). SaaS provides license of a software application to customers using a pay-as-you-go model or on-demand.
IaaS provides operating systems to servers and storage through IP-based connectivity as part of an on-demand service. PaaS is a platform for creating software delivered through the Internet.
These stocks have strong earnings and revenue growth potential for 2025. Moreover, they have seen positive earnings estimate revisions for 2025 in the last 60 days. Each of our picks currently carries a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Rank #1 Five9 provides intelligent cloud software for contact centers in the United States, India, and internationally. FIVN offers a virtual contact center cloud platform that delivers a suite of applications, which enable the breadth of contact center-related customer service, sales, and marketing functions.
FIVN’s platform comprises interactive virtual agents, agent assist, workflow automation, workforce engagement management, AI insights and AI summaries. It allows managing and optimizing customer interactions across voice, chat, email, web, social media, and mobile channels directly or through its application programming interfaces.
FIVN saw its subscription revenues increase by 20% in third-quarter 2024, with total revenues up 15%. FIVN posted an adjusted EBITDA margin of 20%, helping it produce an operating cash flow of $41 million. Management raised its outlook for 2025.
Five9 has an expected revenue and earnings growth rate of 10.4% and 8.2%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 3.2% over the last 60 days.
The average short-term price target of brokerage firms represents an increase of 22.4% from the last closing price of $42.61. The brokerage target price is currently in the range of $40 to $67. This indicates a maximum upside of 57.2% and a downside 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 provider, enterprise and government networks.
NTCT’s Adaptive Service Intelligence technology continuously monitors the service delivery environment to identify performance issues and provides insight into network-based security threats, helping teams to quickly resolve issues that can cause business disruptions or impact user experience. NTCT delivers unmatched service visibility and protects the digital infrastructure that supports our connected world.
NetScout Systems has an expected revenue and earnings growth rate of 10.4% and 8.2%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 3.2% over the last 60 days.
The average short-term price target of brokerage firms represents an increase of 34.1% from the last closing price of $22.69. The brokerage target price is currently in the range of $22 to $38. This indicates a maximum upside of 67.5% and a downside of 3%.
Parsons Corp.
Zacks Rank #1 Parsons is a provider of technology-driven solutions. PSN is focused 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 Federal Solutions and Critical Infrastructure segments.
PSN offers technical design and engineering services and software which consists of cybersecurity, intelligence, defense, military training, connected communities, physical infrastructure and mobility solutions.
Parsons has an expected revenue and earnings growth rate of 6.8% and 11.9%, respectively, for 2025. The Zacks Consensus Estimate for 2025 earnings has improved 2.4% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 22.7% from the last closing price of $97.92. The brokerage target price is currently in the range of $101 to $130. This indicates a maximum upside of 32.8% and no downside.
Booz Allen Hamilton Holding Corp.
Zacks Rank #2 Booz Allen Hamilton Holding offers a solid investment option for those seeking stability, as the business 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 it for sustainable growth.
BAH is benefiting from its Vision 2020 strategy, which has accelerated organic revenue growth, strengthened its profitability and fetched significant headcount and backlog growth. BAH’s VoLT strategy focuses on integrating velocity, leadership and technology in the process of transformation.
Booz Allen Hamilton Holding has an expected revenue and earnings growth rate 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% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 32.6% from the last closing price of $135.56. The brokerage target price is currently in the range of $151 to $210. This indicates a maximum upside of 54.9% and no downside.
Okta Inc.
Zacks Rank #2 Okta operates as an identity partner in the United States and internationally. OKTA offers a suite of products and services used to manage and secure identities, such as Single Sign-On, which enables users to access applications in the cloud or on-premises from various 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 enables organizations to extend Workforce Identity Cloud, and Okta Device Access enables end users to securely log in to devices with Okta credentials. OKTA also provides Universal Directory, a cloud-based system of record to store and secure user, application, and device profiles for an organization.
Okta has an expected revenue and earnings growth rate of 6.8% and 4.9%, respectively, for the next fiscal year (ending January 2026). The Zacks Consensus Estimate for next-year earnings has improved 2.5% in the last 30 days.
The average short-term price target of brokerage firms represents an increase of 26% from the last closing price of $84.76. The brokerage target price is currently in the range of $75 to $140. This indicates a maximum upside of 65.2% and a downside of 11.5%.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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NetScout Systems, Inc. (NTCT) : Free Stock Analysis Report
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