Find Strong Cloud Stocks With This Zacks Tool

Zacks Thematic Screens lets you dive into over 30 dynamic investment themes shaping the future. Whether you're interested in cutting-edge technology, renewable energy, or healthcare innovations, our themes help you invest in ideas that matter to you.

Let’s take a closer look at the ‘Cloud Computing’ theme and take a glance at a stock within, namely Microsoft MSFT.

Cloud Computing Overview

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 from a cloud service provider on an as-needed basis.

This lowers operating costs, increases productivity with greater agility and flexibility, and improves scalability with higher economies of scale.

Microsoft Earnings This Week

Many have grown skeptical of the immense capital being thrown around in the broader AI frenzy, which helps explain some recent volatility we’ve seen among the broader tech sector. Investors are beginning to demand results from the investments for understandable reasons, driven by the lofty forecasts we’ve seen over the past several years.

Concerning consensus expectations for Microsoft’s upcoming release, earnings are forecasted to grow 14% YoY on 16% higher revenues, maintaining an overall solid growth profile.

Bottom Line

Thematic investing has emerged as a powerful way for investors to sync their portfolios with emerging trends. A mix of long-term and short-term themes is increasingly dictating which companies lead as economies expand and markets shift.

While stocks in each theme aren't direct recommendations, they offer a solid starting point. Leverage the Zacks Rank and other metrics to identify the best stocks for your strategy. Each featured stock comes with a Zacks report, giving you the tools to analyze performance and potential.

The Cloud Computing thematic list, which currently Microsoft MSFT is part of, focuses on technology companies that provide the related hardware and software to enable cloud computing services, the communication service providers that offer the network facilities and the various firms that utilize the services across diverse sectors like financial, consumer discretionary and industrials.

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This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research