1 Data Analytics Stocks to Buy, 1 to Avoid
Rising adoption of predictive analysis methods in almost every sector using advanced techniques reliant on big data has contributed significantly to the growth of the data analytics industry. So, a...
Rising adoption of predictive analysis methods in almost every sector using advanced techniques reliant on big data has contributed significantly to the growth of the data analytics industry. So, a fundamentally strong stock in this space, Cloudera (CLDR), is worth betting on now. Conversely, Cardlytix (CDLX) doesn’t look well-positioned to capitalize on the industry tailwinds due to its poor fundamentals. So it is best avoided now.
As the COVID-19 pandemic is far from over, the adoption of data analytics accelerated among businesses, organizations, and society to deal with disruptive changes and radical uncertainty. Several sectors, including retail, healthcare, banking and finance, construction, transportation, and media communications and entertainment, have adopted data analytics for critical strategic initiatives and informed decision-making.
According to the International Data Corporation (IDC), worldwide spending on big data and business analytics (BDA) solutions are expected to reach $215.7 billion this year, an increase of 10.1% over 2020. Also, the global data analytics market is expected to reach $24.63 billion by 2030, exhibiting a CAGR of 25% from 2021.
As such, we believe data analytics stock Cloudera, Inc. (CLDR) is well-positioned to cash in on the industry’s strong growth potential. However, fundamentally weak stock in this space, Celldex Therapeutics, Inc. (CLDX) might struggle to stay afloat.
Stock to Buy:
Cloudera, Inc. (CLDR)
CLDR is an enterprise data cloud company that operates through two segments: Subscription; and Services. The company offers Cloudera Data Flo, Cloudera Data Science Workbench, Cloudera Enterprise Data Hub, Cloudera Data Warehouse, and Hortonworks Data Platform. In addition, it also offers solutions including Cloudera SDX and Cloudera Workload XM, and other cloud management services.
In August, CLDR launched Cloudera DataFlow for the Public Cloud, a cloud-native service for data flows to process hybrid streaming workloads on the Cloudera Data Platform (CDP). This new introduction will enable the company’s customers to boost operational efficiency for streaming workloads, automate complex data flow operations, and cut down on infrastructure costs in the public cloud.
CLDR’s total revenue for the fiscal second quarter ended July 31, 2021, increased 10.1% year-over-year to $236.06 million. The company’s gross profit grew 16% from the year-ago value to $191.08 million. Its loss from operations decreased 10.1% from the prior year’s quarter to $32.85 million. Also, the company’s net loss declined 7.8% year-over-year to $33.21 million.
Analysts expect CLDR’s revenue for the fiscal year 2022 to be $941.89 million, representing an 8.4% year-over-year growth. The company has an impressive earnings surprise history; it beat the consensus EPS estimates in each of the trailing four quarters. CLDR’s EPS is expected to increase 17.8% in the current year. Moreover, the stock has gained 27.5% over the past six months and 49.2% over the past year.
CLDR’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its weighting.
Also, the stock has a B grade for Growth and Quality. We’ve also graded CLDR for Momentum, Value, Stability, and Sentiment. Click here to access all of CLDR’s ratings. CLDR is ranked #10 of 61 stocks in the Software - Business industry.
Stock to Avoid:
CDLX develops a smart platform for purchases. Data pertaining to everything from the payment of bills to credit and debit for web-based and in-store transactions is included in the platform. In short, CDLX makes it easier for marketers to pinpoint, connect with, and influence potential buyers. CDLX also facilitates the measurement of the impact of marketing campaigns.
CDLX has an overall grade of F, which translates into a Strong Sell rating in our POWR Ratings system. The company also has grades of F in the Sentiment and Value components, plus grades of D in the Quality and Stability components. Click here to learn more about how CDLX fares in the Momentum and Growth components.
Of the 103 stocks in the Financial Services (Enterprise) industry, CDLX is ranked 102nd. There are some good stocks in this industry, which you can find by clicking here. CDLX has lost 36% so far a year-to-date price. Check out analyst ratings for CDLX, and you will find they are not exactly hyper-bullish. Out of the half dozen analysts to have provided CLDX recommendations, zero consider the stock a Strong Buy.
CLDR shares were trading at $16.00 per share on Thursday morning, up $0.02 (+0.13%). Year-to-date, CLDR has gained 15.03%, versus a 19.15% rise in the benchmark S&P 500 index during the same period.
About the Author: Priyanka Mandal
Priyanka is a passionate investment analyst and financial journalist. After earning a master's degree in economics, her interest in financial markets motivated her to begin her career in investment research.