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Cloud-based solution-providing companies are making the most of the battle against the pandemic, wherein mass gatherings are strictly restricted and people are being increasingly asked to work from home.

The shelter-in-place orders have fueled demand for remote project collaborations, video conferencing, online classes, data storage, gaming, and e-commerce shopping. Such services are easily available with the help of cloud computing technology.

Moreover, big data has become one of the biggest assets for the healthcare industry. Storing and managing an enormous amount of data are of utmost importance, and cloud computing firms are emerging as key players in this regard.

Additionally, growing usage of cloud-based services is aggravating security lapses, inducing risks of hacking and phishing mails in the garb of coronavirus as the subject content. Also, usage of own devices and equipment that are not properly configured or can be infected with malware during teleworking or accessing information to and fro from cloud raises possibilities of security breaches for enterprises. This is driving demand for cloud-based security service solutions.

With demand for cloud-based solutions growing, enterprises are turning to software companies for providing the digital infrastructure they need to keep up with the online world.

Considering the healthy growth prospects of cloud-focused tech companies, it makes sense to invest in this space for long-term gains.

Lets, thus, take a closer look at some of the notable cloud stocks that not only benefitted from this growing reliance on technology in 2020 but are also poised to keep gaining next year.

The Trade Desk, Inc. TTD is a provider of technology platform for advertising. The company is benefiting from the momentum in programmatic ad buying. In addition, the emergence of digital content boosted the usage of this companys inventory across all forms of ConnectedTV (CTV). Moreover, recovering ad demand and spending scenario is anticipated to fuel the top line.

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Markedly, digital ad spending surpassed traditional media buying last year. Additionally, citing reports of eMarketer, WNIP revealed that the digital ad market is estimated to reach $225 billion by 2024 in the United States alone, up from this years nearly $150 billion. This gives The Trade Desk plenty of room to expand, and marketers need to reach consumers beyond Google and Facebook.

The digital advertising company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of todays Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for 2020 earnings is pegged at $4.99 per share, having been revised 58.4% upward in 60 days time. For 2021, the consensus mark for earnings has moved 25.4% north to $4.98 per share over the same time frame. The companys shares have been up a whopping 255.7% year to date, outperforming the Zacks Internet Services industrys growth of 33.5%.

YTD Price Performance: TTD

Dropbox DBX is riding on growing demand for its cloud-based team collaboration tools through which users can share files, photos, videos, songs and spreadsheets. This Zacks Rank #2 (Buy) companys strong focus on product innovation and introduction of solutions like updated Dropbox Spaces, HelloSign, Passwords, Vault and Computer Backup are anticipated to expand its user base.

Solid demand for cloud storage, triggered by the coronavirus-led work-from-home wave, has been acting as a tailwind for the company. Further, integration with leading applications like Zoom, Slack and Atlassian will likely expand the Dropbox paying user base.

Additionally, Dropboxs innovative Virtual First initiative, under which its employees will work from home majority of the time and will meet once in a while for team collaboration, is expected to lower cost. The companys plan to shift to hiring in low-cost regions is likely to boost profitability.

The Zacks Consensus Estimate for 2020 earnings stands at 88 cents per share, up 14.3% in the past 60 days. The consensus mark for its 2021 earnings is pegged at $1 per share, having been revised 9.9% upward over the same time frame. The stock has spiked 37.4% in the year-to-date period, outperforming the Internet Services industrys rise of 33.5%.

YTD Price Performance: DBX

Zscaler ZS is one of the worlds leading providers of cloud-based security solutions. The company is riding on heightening demand for cyber-security solutions owing to the slew of data breaches. Increasing demand for privileged access security on digital transformation and cloud-migration strategies is a key growth driver.

Apart from this, the companys Edge cloud for policy enforcement, multi-tenancy, proxy for SSL or TLS inspection and zero trust network access are positioned robustly to gain adoption amid the thriving remote-work culture.

This Zacks Rank #2 companys portfolio strength boosts its competitive edge and helps add users. Furthermore, a strong presence across verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, is another key catalyst.

The Zacks Consensus Estimate for fiscal 2021 earnings is pegged at 37 cents per share, having been revised 27.6% upward in 30 days time. For fiscal 2022, the consensus mark for earnings has moved 9.6% north to 57 cents per share over the same time frame. Shares of Zscaler have soared 346.2%, outperforming the Zacks Internet Services industrys return of 33.5% in the year so far.

YTD Price Performance: ZS

Pinterest PINS provides a platform to show its users (called Pinners) visual recommendations (called Pins) based on their personal taste and interests. Users then save and organize these recommendations into collections (called Boards).

The social media provider is benefiting from user base expansion boosted by coronavirus-led lockdown. Availability of features like Today and Shop tab for Pinners has been the key catalysts. Moreover, enhanced product offerings, wider Pinner and advertiser base, and simplified ad systems through Verified Merchant Program and Pinterest Partners Program for small businesses are diving growth.

The stock has a Zacks Rank #2, at present. The Zacks Consensus Estimate for its 2020 bottom line is pegged at 31 cents per share, up a whopping 244.4% in the past 60 days. For fiscal 2021, the consensus mark for earnings has doubled to 42 cents per share from 26 cents over the same time frame. The companys shares have been up a whopping 291.6% year to date, outperforming the Zacks Internet Software industrys surge of 122%.

YTD Price Performance: PINS

In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?

These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.

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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportThe Trade Desk Inc. (TTD) : Free Stock Analysis ReportDropbox, Inc. (DBX) : Free Stock Analysis ReportZscaler, Inc. (ZS) : Free Stock Analysis ReportPinterest, Inc. (PINS) : Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research

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4 Cloud Stocks That Will Continue to Fly High in 2021 - Yahoo Finance