Degas Wright is bullish on these two cloud stocks

By:
on Jul 7, 2022
  • Degas Wright explains why he is bullish on Veeva Systems stock.
  • He says IBM is doing all the right things in a new area of technology.
  • Cloud stocks (WCLD) have gained nearly 20% since mid-June 2022.

Cloud stocks (WCLD) are up nearly 20% since June 16th, but it’s not too late to hop onto the rally, says Degas Wright – the Founder and CEO of Decatur Capital Management.

Wright likes Veeva Systems Inc

A name he likes to play the building strength in the cloud stocks is Veeva Systems Inc (NYSE: VEEV) that focuses on pharmaceutical and life sciences applications. On CNBC’s “Worldwide Exchange”, he said:

Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.

Nine of the ten analysts have started to increase their estimates for revenue and earnings for Veeva Systems. It has a forecast profit margin of 20% and it reinvests 20% of their revenues back into R&D to continue to do innovative solutions.

Confidence in the leadership of Peter Gessner were among other reasons why Wright is bullish on the cloud computing company. Also on Thursday, RBC Capital Markets added “VEEV” to its 2022 Best Ideas.

Wright also recommends IBM stock

A more everyday name he recommends is IBM Corporation (NYSE: IBM) that’s up 3.0% for the year – a huge achievement considering the market has been brutal to the tech stocks in 2022. Wright noted:

Under Arvind Krishna, IBM is focusing on hybrid cloud, artificial intelligence, and computer consulting. They have a dividend yield of 5.0% and a return on invested capital of 15%. IBM is doing all the right things in a new area of technology.

IBM had a strong Q1 and is expected to report its current quarter results on July 18th. The stock currently trades at a PE multiple of 23.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker, eToro
10/10
68% of retail CFD accounts lose money