4 Stocks to Watch Amid the Growing Importance of Big Data
The rapid advancement in technologies has meant that data generation has increased manifold over the years. This has paved the way for the concept of big data to gain precedence as an effective way for businesses and organizations to handle large volumes of data and use that data to their advantage with the help of various analytic tools to gain useful insights and increase efficiency. In fact, the rising usage of technologies like the Internet of Things, machine learning, cloud platforms and social media, among others, have only increased the importance of big data.
Notably, big data allows businesses and organizations to improve upon customer experience by gathering and analyzing the vast sets of data being made available to them by customers. By analyzing such data, businesses can understand the behavior of their customers, their likes and dislikes, and offer a more personalized recommendation to them, thereby making the offerings more appealing. In fact, the media industry, especially video and music streaming platforms, makes use of big data analytics to do the same and allows their consumers to more conveniently find the content that might suit their likings. Meanwhile, the retail segment, especially e-commerce, also uses big data to study factors like purchase history and shopping preferences of customers to offer a tailor-made set of recommendations.
Moreover, since big data allows businesses and organizations to understand how customers are responding to their products and services, they can work toward improving those experiences and make way for innovation as businesses can decide upon better strategies and develop new products and services.
Markedly, big data has also made its way to the stock market as organizations use it to gain insight into market trends and make informed decisions. Meanwhile, banks and financial institutions are also using big data to better understand their customers by analyzing their spending habits and so on, making it more convenient to offer them a personalized experience. Big data is also used in detecting threats of fraud.
Notably, with the changes that big data is bringing to various segments, it is not surprising that the big data market seems set to grow. In fact, a report by Expert Market Research stated that the global big data and analytics market is expected to witness a CAGR of 10% from 2021 to 2026 and reach $450 billion by 2026, from $208 billion in 2020. Moreover, businesses are also making use of Big Data as a Service (“BDaaS”) solutions and utilizing the analytic tools and platforms provided by outside organizations for managing large volumes of data. Markedly, a report by Mordor Intelligence stated that the global BDaaS market is estimated to witness a CAGR of 26.2% by 2026.
4 Stocks to Watch
The usage of big data seems poised to grow in the near term as businesses and organizations continue to gather an increasing volume of data and analyze them to enhance their efficiency and customer experience. Hence, this seems like an opportune moment to look at names that can benefit from this continued upswing. Notably, we have selected four such stocks that carry a Zacks Rank #1 (Strong Buy) or 3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alphabet Inc.’s GOOGL Google provides big data services like BigQuery, Dataproc, and so on, through its Google Cloud platform. The company currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings increased 29.1% over the past 60 days. The company’s expected earnings growth rate for the current year is 52.6%.
Elastic N.V. ESTC primarily offers Elastic Stack, which is a suite of software products that are used for analyzing big data. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings improved nearly 2% over the past 60 days. The company’s expected earnings growth rate for the next year is 56%.
MongoDB, Inc. MDB provides a general-purpose database platform worldwide and the MongoDB NoSQL database is used to underpin many big data systems in both real-time, operational data store, and in offline capacities. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings improved 0.7% over the past 60 days. The company’s expected earnings growth rate for next year is 22.2%.
Oracle Corporation ORCL offers Oracle Big Data service, which is an automated cloud service for enterprises. The company currently has a Zacks Rank #3. The Zacks Consensus Estimate for its current-year earnings increased 2.5% over the past 90 days. The company’s expected earnings growth rate for the next five years is 8.5%.
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