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How To Trade The Cloud In 2016

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How To Trade The Cloud In 2016

KeyBanc analyst Brendan Barnicle believes 2016 will be another strong year for leading enterprise software stocks. While the large capital expenditure required to compete in the professional cloud space will likely limit competition to the major players already involved, Barnicle believes there could continue to be outside competition from specialized cloud providers.

“Legacy enterprise vendors should continue to move as quickly as possible to the Professional Cloud,” Barnicle urged. He also sees further consolidation in the SaaS space, both via merger activity and by companies developing a wider range of applications.

Related Link: Gabelli & Co's Top Technology, Media And Telecom Stocks For 2016

KeyBanc named the following four stocks as the best trading ideas for 2016:

  • Large Cap: Microsoft Corporation (NASDAQ: MSFT)
  • Mid Cap: Autodesk, Inc. (NASDAQ: ADSK)
  • Small Cap: HubSpot Inc (NYSE: HUBS)
  • Small Cap: Zendesk Inc (NYSE: ZEN)

In addition, the firm also recommends the following issues:

  • Adobe Systems Incorporated (NASDAQ: ADBE)
  • salesforce.com, inc. (NYSE: CRM)
  • Veeva Systems Inc (NYSE: VEEV)
  • Workday Inc (NYSE: WDAY)

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain

Latest Ratings for MSFT

DateFirmActionFromTo
Oct 2019AssumesOutperform
Oct 2019UpgradesHoldBuy
Jul 2019MaintainsOutperform

View More Analyst Ratings for MSFT
View the Latest Analyst Ratings

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