Stocks moved lower in early trading this morning after coming off a week of gains as earnings topped estimates and strong economic data lifted the major averages. More than 70 S&P 500 companies are slated to report this week. Notably, today after the close IBM and United Airlines will report with several more Wall Street favorites reporting this week. Stay tuned for updates.
Our trade alert for today focuses on one mighty mid-cap tech stock with huge potential. Could this potentially be one of the stocks that transitions from mid-cap to large caps? Judging from the booming increase in demand, it may happen sooner than you think.
Read on to find out which mid-cap tech stock is set to soar.
Rackspace Technology (RXT) partners with cloud services providers such as Google parent Alphabet (GOOGL), Amazon (AMZN) and Microsoft (MSFT) to manage its enterprise customers’ cloud-based services.
And make no mistake, this sort of expertise is much in demand.
The pandemic accelerated many industries’ migration to cloud technology. As such, plenty of firms have discovered they need all the help they can get when it comes to transitioning and managing their operations – often with more than one cloud service provider.
“The prevalence of a multicloud approach has created integration and operational complexity that require expertise and resources most companies lack,” writes William Blair analyst Jim Breen, who rates RXT at Outperform (the equivalent of Buy). “This creates an opportunity for a multi-cloud services partner to enable businesses to fully realize the benefits of cloud transformation.”
Breen adds that research firm IDC forecasts the managed cloud services market to grow 15% a year to more than $100 billion by 2024.
As the leading company in the field of multi-cloud services, bulls argue that Rackspace stands to benefit disproportionately from all this burgeoning demand.
Speaking of bulls, of the 10 analysts covering the stock tracked by S&P Global Market Intelligence, five rate RXT at Strong Buy and five call it a Buy. That number is up from 8 Buy recommendations three months ago – another positive sign for RXT stock.
Where to invest $1,000 right now...
Before you consider buying Rackspace, you'll want to see this.
Investing legend, Keith Kohl just revealed his #1 stock for 2021...
And it's not Rackspace.
Jeff Bezos, Peter Thiel, and the Rockefellers are betting a colossal nine figures on this tiny company that trades publicly for $5.
Keith say’s he thinks investors will be able to turn a small $50 stake into $150,000.
Find that to be extraordinary?
But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.