We’ve searched for cloud stocks that present compelling investment opportunities; some appear undervalued, and others are on exciting rallies.
Where Can I Buy Cloud Stocks in June 2021?
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Which Cloud Stocks to Buy in June 2021?
To compile this list of top stocks to buy in June 2021, we have focused on those that earn most of their revenues from cloud-related products and services.
1. Twilio (NYSE: TWLO)
Twilio is a cloud communication platform that enables developers to build scalable customer communications systems.
This stock rallied nearly 67% between November last year and February this year following the acquisition of market-leading customer data platform Segment.io. Shares have since pulled back during the integration stage, but the combined company should benefit from synergies in the coming years. Indeed, Twilio stock is already up more than 18% since 13th May as the acquisition begins to pay off.
Twilio’s earnings per share (EPS) is expected to grow by 212% next year, so it could be a good stock to buy this month.
2. Autodesk (NASDAQ: ADSK)
Autodesk provides software and services to the engineering and entertainment industries. It has transitioned from an off-the-shelf software provider to become one of the most exciting cloud stocks in the market.
ADSK shares gained more than 46% between October last year and January this year. They pulled back more than 20% through 8th March but the stock has since rallied nearly 10% to recoup some losses.
EPS is expected to grow by 440% this year, which makes ADSK one of the top cloud stocks to buy in June.
3. Akamai Technologies (NASDAQ: AKAM)
Akamai provides cloud services for secure delivery and optimization of content and business applications online. It is one of the leading software infrastructure companies that protect internet-based businesses from cyberattacks.
AKAM earnings per share grew by 26% in the most recent quarterly results and are expected to grow by 16% overall this year. The stock gained nearly 27% between 3rd March and 11th June after plunging more than 20% in the preceding four-week period.
Many businesses are adapting to internet-based platforms to try to cut costs, and Covid-19 has also played a role in pushing businesses towards online platforms. This shift is expected to continue in the coming years, which could boost the demand for Akamai Technologies’ services.
4. Okta (NASDAQ: OKTA)
Okta is a cloud-based identity management and protection company with a market cap of over $30 billion. The company records and securely stores user profiles for individuals and organizations. It also offers the popular multi-factor authentication process to provide an additional layer of security on mobile, web, and app-based platforms.
OKTA stock has pulled back more than 20% since 26th April making it potentially undervalued. Its operating loss increased significantly in the most recent quarterly results but that could change in the coming years.
EPS is expected to grow by 34% next year, which creates more upside potential. Okta’s business should experience exponential growth as more businesses adapt to the use of online workspaces.
5. Oracle (NYSE: ORCL)
Oracle is one of the leading software-as-a-service (SaaS) cloud companies in the world. It offers several cloud-based services to businesses.
ORCL shares trade at an attractive price-earnings ratio (P/E) of just 19.79. The current forward P/E of 17.27 is also compelling.
Oracle is one of the largest cloud stocks you can buy now. It adds balance when mixed with smaller high-growth cloud stocks.
6. Box (NYSE: BOX)
Box provides cloud management software to companies of all sizes. It allows organizations to share content across multiple platforms with teams and third parties located anywhere in the world.
Box shares are up more than 40% this year. Its earnings are expected to grow by more than 70% this year and by over 30% next year.
Again the shift towards online platforms should provide sustainable growth, and BOX is a good example of cloud stock to buy if you’re looking for momentum.
7. Amdocs (NASDAQ: DOX)
Amdocs is a cloud services provider with a market cap of over $10 billion. The company provides services to companies operating in the communications, entertainment, and media industries. DOX delivers useful insights to help businesses understand their customers better, optimize monetization, and improve engagement through open cloud networks.
This stock trades at an attractive P/E ratio of just 15.80. Its shares are up nearly 17% this year, which leaves a lot of room to run.
DOX is potentially undervalued cloud stock to buy in June.
8. NortonLifeLock (NASDAQ: NLOK)
NortonLifeLock provides online security services to consumers worldwide. The company’s software protects PC and mobile devices from internet malware, adware, ransomware, and other online attacks. It also offers VPN services for private and secure online browsing.
NLOK trades at an exciting forward P/E of just 14.91. The stock is up 37% this year but it looks like there is more to come.
Earnings per share are expected to grow by 29% this year, making it a potentially undervalued cloud stock to watch in June 2021.
9. Dropbox (NASDAQ: DBX)
Dropbox shares are up close to 35% this year. Most of that growth came during the past four weeks when DBX shares gained more than 21%. This cloud storage software service provider also trades at an attractive forward P/E ratio of about 19.78.
Dropbox earnings are expected to grow at an average of 16.80% annually over the next five years, which makes it both an exciting growth prospect and a momentum cloud stock to buy this month.
10. Adobe Systems (NASDAQ: ADBE)
Adobe is a leading company in the creative software space. Its creative cloud subscription service allows users to access the latest versions of its products.
Earnings are expected to grow by 80% this year and at an average of about 17.50% annually for the next five years. ADBE shares are up 14.65% over the last four weeks and nearly 35% in the last 12 months.
This stock appears to be gaining momentum at the right time, so Adobe looks like one of the most exciting cloud computing stocks to buy now.
Why Buy Cloud Stocks in June 2021?
Cloud computing companies operate in one of the most exciting industries. The demand for cloud services will only go up as more businesses adapt to online workspaces. Businesses are shifting towards cloud subscription business models which are more predictable than traditional software distribution models when it comes to revenue projections and budgeting.
Some cloud stocks are now bouncing back after significant pullbacks while others appear to have the momentum to keep going up. In both cases, June is a good time to consider cloud stocks.
The Bottom Line
We have suggested two types of cloud stocks. Some look significantly undervalued whereas others offer exciting growth prospects. We have also added some cloud stocks for momentum investors.
Be sure to invest in more than one cloud stock to balance your portfolio, and consider diversifying further into other exciting industries to reduce your investment risk.