2 Big Data Stocks Wall Street Predicts Will Surge 70% or More

The technology sector has rebounded slightly over the past few days thanks to the positive fourth-quarter earnings of industry leaders. Despite the Fed’s new, hawkish tilt, strong demand for tech in the post-pandemic world should allow the global tech industry to grow at a stable rate in the coming years.

Big data is becoming a crucial and necessary tool for organizations to remain operational. Big data analytics ensures better business risk management, future data predictions, and many other applications. According to Reports and Data, the Global Big Data Market is expected to reach $261.92 billion by 2027.

Therefore, we think it could be wise to add fundamentally sound big data stocks Elastic N.V. (ESTC) and Alteryx, Inc. (AYX) to one’s watch list. Wall Street analysts expect them to rally by more than 70% in price.

Elastic N.V. (ESTC)

ESTC, a Mountain View, Calif.-based search company, delivers technology that enables users to search through structured and unstructured data for various consumer and enterprise applications. It offers Elastic Stack, a set of software products that ingest and store data from multiple sources and formats and performs searches, analysis, and visualization. 

On Dec. 1, 2021, Shay Banon, ESTC founder and CEO, said, “Customers are increasingly choosing Elastic Cloud to reduce complexity, automate operations, and make faster, data-driven decisions. Given the ongoing momentum, we expect Elastic Cloud revenue to exceed 50% of our total revenue in the next three years.”

ESTC’s total revenue came in at $205.98 million for its fiscal 2022 second quarter, ended Oct. 31, 2021, up 42.2% year-over-year. The company’s non-GAAP gross profit came in at $158.13 million, up 41.8% year-over-year. Also, its cash and cash equivalents were $876.06 million for the period ended Oct. 31, 2021, compared to $400.81 million for the period ended April 30, 2021.

For its fiscal 2022, analysts expect ESTC’s revenue to increase 36.9% year-over-year to $832.91 million. The company’s EPS is expected to grow 18.9% for its fiscal 2023. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. The stock closed yesterday’s trading session at $88.74. Wall Street analysts expect the stock to hit $168.55 in the near term, which indicates a potential 89.9% upside.

Alteryx, Inc. (AYX)

AYX provides an end-to-end analytics platform for data analysts and scientists worldwide. It unifies analytics, data science, and business process automation in one end-to-end platform to accelerate digital transformation and shape the future of analytic process automation (APA). AYX is headquartered in Irvine, Calif.

On Jan. 6, 2022, AYX announced an agreement to acquire Trifacta. Mark Anderson, CEO of AYX, said, “Trifacta brings highly skilled cloud-first engineering, product and go-to-market teams with decades of combined experience building and bringing to market mission-critical, cloud-native analytics solutions. Together, Trifacta and Alteryx expand our total addressable market with additional opportunities to target new data and cloud transformation initiatives for Global 2000 customers.”

AYX’s cash and cash equivalents were $184.52 million for the period ended Sept. 30, 2021, versus $171.89 million for the period ended Dec. 31, 2020. Its other assets were $76.34 million, compared to $70.62 million for the period ended Dec. 31, 2020. Also, its long-term investments were $413.81 million, compared to $265.80 million, for the same period.

Analysts expect AYX’s revenue to increase 17.6% year-over-year to $621.82 million in its fiscal 2022. Its EPS is also expected to increase 78.6% year-over-year in fiscal 2022. Also, it surpassed the EPS estimates in each of the trailing four quarters. The stock closed yesterday’s trading session at $53.56. Wall Street analysts expect the stock to hit $92.13 in the near term, which indicates a potential 72% upside.

ESTC shares were trading at $85.56 per share on Thursday afternoon, down $3.18 (-3.58%). Year-to-date, ESTC has declined -30.49%, versus a -5.12% rise in the benchmark S&P 500 index during the same period.

Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries.

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