3 Cloud Stocks to Buy after Dow Falls 13% on Growing Coronavirus Fears

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On Sunday, the Fed slashed its benchmark interest rate to near zero to try to help curb the economic fallout from the coronavirus. Meanwhile, the CDC now recommends that gatherings of over 50 people should be canceled for eight weeks. Plus, nearly all events have been postponed or canceled, while restaurants and stores close. Apple AAPL, Nike NKE, and other giants announced they would close their stores and more people are starting to stay home. ” data-reactid=”20″>On Sunday, the Fed slashed its benchmark interest rate to near zero to try to help curb the economic fallout from the coronavirus. Meanwhile, the CDC now recommends that gatherings of over 50 people should be canceled for eight weeks. Plus, nearly all events have been postponed or canceled, while restaurants and stores close. Apple AAPL, Nike NKE, and other giants announced they would close their stores and more people are starting to stay home.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Last week, Broadcom AVGO pulled its full-year guidance due to coronavirus uncertainty and Wall Street is clearly nervous about the growing unknown. All of this helped push stocks down. In fact, the Dow closed at its lowest level since May 2017. ” data-reactid=”21″>Last week, Broadcom AVGO pulled its full-year guidance due to coronavirus uncertainty and Wall Street is clearly nervous about the growing unknown. All of this helped push stocks down. In fact, the Dow closed at its lowest level since May 2017.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="With this in mind, some investors might want to start buying stocks, or at least adding some to their watchlists. Today, we found three cloud computing stocks that investors might want to consider.” data-reactid=”22″>With this in mind, some investors might want to start buying stocks, or at least adding some to their watchlists. Today, we found three cloud computing stocks that investors might want to consider.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Microsoft MSFT” data-reactid=”23″>Microsoft MSFT

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Microsoft already warned Wall Street in late February that it is likely to fall short of its revenue guidance for its More Personal Computing segment, due to setbacks in China. Luckily for investors, MSFT said that its Q3 guidance “remain unchanged” for its other units. This is a good sign since Microsoft’s cloud computing segment has driven its growth and price performance for the last several years—with Intelligent Cloud revenue up 27% last quarter. ” data-reactid=”24″>Microsoft already warned Wall Street in late February that it is likely to fall short of its revenue guidance for its More Personal Computing segment, due to setbacks in China. Luckily for investors, MSFT said that its Q3 guidance “remain unchanged” for its other units. This is a good sign since Microsoft’s cloud computing segment has driven its growth and price performance for the last several years—with Intelligent Cloud revenue up 27% last quarter.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Microsoft’s expanding cloud segment is poised to carry the firm going forward, as it adapts within the quickly changing and expanding tech world. Looking ahead, Microsoft’s adjusted earnings are projected to surge over 18% and 12.5%, respectively in fiscal 2020 and 2021. MSFT’s sales are set jump to 12.8% and 11.7% during this same stretch, which is solid for a company of its size and age. ” data-reactid=”25″>Microsoft’s expanding cloud segment is poised to carry the firm going forward, as it adapts within the quickly changing and expanding tech world. Looking ahead, Microsoft’s adjusted earnings are projected to surge over 18% and 12.5%, respectively in fiscal 2020 and 2021. MSFT’s sales are set jump to 12.8% and 11.7% during this same stretch, which is solid for a company of its size and age.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Despite a few downward earnings estimate revisions, MSFT’s overall earnings revisions picture remains heavily positive. This helps Microsoft hold a Zacks Rank #1 (Strong Buy) at the moment. The stock is also part of a highly-ranked Zacks industry and its dividend yield rests at 1.51%, which easily top the 10-year U.S. Treasury’s 0.73%. ” data-reactid=”26″>Despite a few downward earnings estimate revisions, MSFT’s overall earnings revisions picture remains heavily positive. This helps Microsoft hold a Zacks Rank #1 (Strong Buy) at the moment. The stock is also part of a highly-ranked Zacks industry and its dividend yield rests at 1.51%, which easily top the 10-year U.S. Treasury’s 0.73%.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Plus, MSFT executives consistently raise their dividend and they approved a new share repurchase program last fall. Microsoft stock fell 15% Monday to close at roughly $135 a share, down roughly 30% from its 52-week highs and trading where it was in October 2019. Some investors might want to wait for it to fall further before they buy. But MSFT appears to be a strong long-term buy amid all of the uncertainty for its ability to grow and remain diversified.” data-reactid=”27″>Plus, MSFT executives consistently raise their dividend and they approved a new share repurchase program last fall. Microsoft stock fell 15% Monday to close at roughly $135 a share, down roughly 30% from its 52-week highs and trading where it was in October 2019. Some investors might want to wait for it to fall further before they buy. But MSFT appears to be a strong long-term buy amid all of the uncertainty for its ability to grow and remain diversified.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Zuora, Inc. ZUO” data-reactid=”28″>Zuora, Inc. ZUO

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Zuora sells cloud-based software on a subscription basis that aims to help firms transition to their own subscription-focused models. ZUO hopes to capitalize on the rise of everything from Netflix NFLX to Adobe ADBE. Zuora’s tagline is “The World Subscribed” and it sees the global economy transitioning toward a subscription model. Plus, the company has worked with everyone from cybersecurity firm Carbonite CARB to Caterpillar CAT. ” data-reactid=”29″>Zuora sells cloud-based software on a subscription basis that aims to help firms transition to their own subscription-focused models. ZUO hopes to capitalize on the rise of everything from Netflix NFLX to Adobe ADBE. Zuora’s tagline is “The World Subscribed” and it sees the global economy transitioning toward a subscription model. Plus, the company has worked with everyone from cybersecurity firm Carbonite CARB to Caterpillar CAT.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Last week, Zuora posted a narrower than expected fourth quarter fiscal 2020 loss. But the stock has been hurt as part of the broader selloff. The last month has seen ZOU stock fall from $16 a share to its current price of around $7.20 per share. Overall, shares of the Mountain View, California-headquartered firm sit 70% below their 52-week highs of over $24 a share, which could give it plenty of room to run. ” data-reactid=”30″>Last week, Zuora posted a narrower than expected fourth quarter fiscal 2020 loss. But the stock has been hurt as part of the broader selloff. The last month has seen ZOU stock fall from $16 a share to its current price of around $7.20 per share. Overall, shares of the Mountain View, California-headquartered firm sit 70% below their 52-week highs of over $24 a share, which could give it plenty of room to run.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="ZUO is currently a Zacks Rank #2 (Buy) that sports an “A” grade for Growth and a “B” for Momentum in our Style Scores system. Looking ahead, our Zacks estimates call for the company’s fiscal 2021 sales to surge over 20%, with 2022 expected to jump over 22% higher to $406.4 million. Meanwhile, its adjusted loss is expected to come in lower in 2021, at -$0.26 a share against its recently reported -$0.34. Then its adjusted loss in 2022 is projected to shrink to -$0.08 a share.” data-reactid=”31″>ZUO is currently a Zacks Rank #2 (Buy) that sports an “A” grade for Growth and a “B” for Momentum in our Style Scores system. Looking ahead, our Zacks estimates call for the company’s fiscal 2021 sales to surge over 20%, with 2022 expected to jump over 22% higher to $406.4 million. Meanwhile, its adjusted loss is expected to come in lower in 2021, at -$0.26 a share against its recently reported -$0.34. Then its adjusted loss in 2022 is projected to shrink to -$0.08 a share.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon AMZN ” data-reactid=”32″>Amazon AMZN

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Amazon, unlike Apple, MSFT, and other tech giants failed to gain much momentum in 2019, but it did climb late in the year into February. But AMZN shares have fallen over 22% since the market began to tumble and hit a new 52-week low Monday, closing regular trading at $1,689.15 a share. This alone might make some want to take a deeper look at Amazon, which is currently a Zacks Rank #3 (Hold) and is trading at 3.1X sales—well below Alibaba’s BABA 7.1 and Apple’s 4.5X.” data-reactid=”33″>Amazon, unlike Apple, MSFT, and other tech giants failed to gain much momentum in 2019, but it did climb late in the year into February. But AMZN shares have fallen over 22% since the market began to tumble and hit a new 52-week low Monday, closing regular trading at $1,689.15 a share. This alone might make some want to take a deeper look at Amazon, which is currently a Zacks Rank #3 (Hold) and is trading at 3.1X sales—well below Alibaba’s BABA 7.1 and Apple’s 4.5X.