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The cloud computing market has seen tremendous growth as organizations migrate workloads from traditional channels to digital formats. Businesses across industries have rapidly adopted the work-from-home model to remain operational remotely, thereby increasing the demand for Software-as-a-Service (SaaS)-based solutions.

The global cloud computing market is being propelled by emerging technologies such as big data, artificial intelligence (AI), and machine learning (ML). Moreover, critical issues relating to data protection, network latency, and regulatory mandates are also helping in the expansion of cloud computing services.

The global cloud computing market is estimated to grow at a CAGR of approximately 15.8% between 2022-2028.

While tech companies are trying to sustain their pandemic-era growth, the cloud trend is here to stay, with more businesses taking on digitizing their operations.

Thus, given the solid prospects of the industry, it could be wise to buy quality cloud computing stocks Extreme Networks, Inc. (EXTR), AudioCodes Ltd. (AUDC), Viavi Solutions Inc. (VIAV), and Juniper Networks, Inc. (JNPR).

Extreme Networks, Inc. (EXTR)

EXTR provides software-driven networking solutions worldwide. It designs and develops wired and wireless network infrastructure equipment; and software for network management, policy, analytics, security, and access controls.

On June 7, 2022, EXTR extended its ExtremeCloud portfolio to include new SD-WAN and AIOps solutions with digital twin capabilities that enable customers to deliver secure connectivity, deploy speedy cloud systems, and uncover actionable insights. This should expand the companys customer base.

In May, the company announced that some of the worlds most famous resorts and casinos are leveraging its solutions to optimize casino and resort operations and provide first-class guest experiences. This demonstrates EXTRs strong positioning in the industry.

EXTRs total net revenues increased 12.7% year-over-year to $285.51 million in the fiscal quarter ended March 31, 2022. Its gross profit grew 8.4% from the year-ago value to $161.36 million. Operating income for the quarter came in at $17.31 million, up 55.2% year-over-over, while its net income per share grew 233.3% from the prior-year quarter to $0.10.

Analysts expect EXTRs revenue for the fiscal year ending June 2022 to come in at $1.10 billion, indicating an increase of 9.4% year-over-year. Also, the companys EPS is expected to grow 36.3% year-over-year to $0.78 in the same period. It surpassed the consensus EPS estimates in all the trailing four quarters.

EXTR gained 15.8% over the past month to close yesterdays trading session at $10.25.

EXTRs strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, translating to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

EXTR has a B grade in Value, Growth, and Quality. It is ranked #2 of 53 stocks in the Technology Communication/Networking industry.

Beyond what is stated above, weve also rated EXTR for Momentum, Sentiment, and Stability. Get all the EXTR ratings here.

AudioCodes Ltd. (AUDC)

Headquartered in Lod, Israel, AUDC provides advanced communications software, products, and productivity solutions for the digital workplace.

For the fiscal quarter ended March 31, 2022, AUDCs total revenues increased 12.8% year-over-year to $66.36 million. Its gross profit grew 10.2% from the year-ago value to $44.36 million.

Street expects AUDCs revenue in the quarter ending September 2022 to come in at $71.58 million, indicating an increase of 12.9% year-over-year. Its EPS is expected to improve 1.8% year-over-year to $0.39. The company also beat the consensus EPS estimates in three of the trailing four quarters.

AUDCs shares have gained 4.1% over the past month to close the last trading session at $22.10.

AUDCs sound prospects are reflected in its POWR Ratings. The stock has an overall rating of A, equating to Strong Buy in our POWR Ratings system.

The company also has an A grade in Quality and a B in Stability and Sentiment. The stock is ranked #1 in the Technology Communication/Networking industry. Click here to get AUDCs Momentum, Growth, and Value ratings.

Viavi Solutions Inc. (VIAV)

VIAV provides network test, monitoring, and assurance solutions to communications service providers, enterprises, network equipment manufacturers, government, and avionics customers worldwide. The company operates through three segments Network Enablement (NE); Service Enablement (SE); and Optical Security and Performance Products (OSP) segments.

On June 7, VIAV announced the availability of ApexNow, an app integration between Viavi Observer Apex, ServiceNow IT Operations Management (ITOM), and Telecommunications Service Operations Management. This application should ensure user-friendliness and efficiency, which enables their joint customers to stay ahead of IT and service issues.

VIAVs net revenue increased 4% year-over-year to $315.50 million in the fiscal third quarter ended April 2, 2022. Its income from operations grew 13.6% from the year-ago value to $40.80 million, while its net income per share improved by 14.3% year-over-year to $0.08.

VIAVs revenue for the fiscal quarter ended June 2022 is expected to improve 3.8% year-over-year to $322.80 million. The consensus EPS estimate of $0.23 for the same quarter indicates an increase of 3.8% year-over-year. The company surpassed the consensus EPS estimates in each of the trailing four quarters, which is impressive.

VIAVs shares have gained marginally intraday to close the last trading session at $13.37.

The company has an overall rating of B, translating to Buy in our proprietary ratings system. VIAV is also rated B in Growth and Quality. In the same industry, it is ranked #3.

Click here for additional POWR Ratings for Value, Stability, Momentum, and Sentiment for VIAV.

Juniper Networks, Inc. (JNPR)

JNPR designs, develops, and sells network products and services worldwide.

On July 14, JNPR introduced a new AI-driven EX4100 series of enterprise-grade wired access switches and Mist AI to deliver outstanding performance, flexibility, optimized client-to-cloud user experiences, and security.

These latest enhancements to our AI-driven Enterprise portfolio expand our value proposition to even more campus and branch environments while also doubling down on Junipers unique AI-driven advantages across the entire network lifecycle, from installation and configuration to operations and troubleshooting, said Sudheer Matta, Group Vice President, Product Management, AI-driven Enterprise at JNPR.

JNPRs total net revenues increased 8.7% year-over-year to $1.17 billion in the fiscal quarter ended March 31, 2022. Its operating income improved 110.4% year-over-year to $58.50 million over the period, while its net income and EPS increased 279.1% and 270% from its year-ago values to $55.70 million and $0.17, respectively.

Analysts expect JNPRs EPS for the fiscal quarter ended June 2022 to come in at $0.44, indicating a 3.5% increase year-over-year. The consensus revenue estimate of $1.26 billion represents a year-over-year increase of 7.3% for the same period. JNPR also beat the consensus EPS estimates in three of the trailing four quarters.

The stock has gained marginally intraday to close the last trading session at $28.03.

It is no surprise that JNPR has an overall rating of B, equating to Buy in our POWR Ratings system. JNPR also has a B grade in Value, Growth, and Quality. The stock is ranked #8 in the Technology Communication/Networking industry.

In addition to the POWR Rating grades Ive just highlighted, you can see JNPRs Momentum, Sentiment, and Stability ratings here.

EXTR shares were trading at $10.57 per share on Friday afternoon, up $0.32 (+3.12%). Year-to-date, EXTR has declined -32.68%, versus a -18.56% rise in the benchmark S&P 500 index during the same period.

Komal's passion for the stock market and financial analysis led her to pursue investment research as a career. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More...

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EXTR: Are Cloud Computing Stocks the Safe Haven of Tech? 4 Stocks to Try - StockNews.com