Buy 5 Mid-Cap Stocks to Gain From Impressive Cloud Computing Momentum

Zacks Investment Research highlights five mid-cap cloud computing stocks—BILL Holdings (BILL), Five9 (FIVN), Fastly (FSLY), Qualys (QLYS), and Commvault Systems (CVLT)—as strong buys poised to benefit from increasing global demand. These companies are leveraging AI and cloud-based solutions to drive growth, with each demonstrating positive earnings estimate revisions and offering innovative services in areas like financial operations automation, contact center intelligence, edge computing, cybersecurity, and data protection; revenue and earnings growth are projected for each company in the coming years.

Analysis

The cloud computing sector continues to exhibit robust global demand, driving opportunities for mid-cap companies specializing in this domain. Zacks Investment Research has identified five such entities – BILL Holdings (BILL), Five9 (FIVN), Fastly (FSLY), Qualys (QLYS), and Commvault Systems (CVLT) – all holding favorable Zacks Ranks of #1 (Strong Buy) or #2 (Buy), indicating positive analyst sentiment. BILL Holdings (Zacks Rank #1) is poised for growth through its AI-enabled financial software platform for SMBs, with expected revenue and earnings growth of 13.5% and 7.8% respectively for the year ending June 2026, and a 4.2% improvement in next-year earnings estimates over the last 60 days. Five9 (Zacks Rank #2), a provider of intelligent cloud software for contact centers, is benefiting from AI adoption, projecting current-year revenue and earnings growth of 9.6% and 11.7% respectively, with current-year earnings estimates up 6.6% in the past 60 days. Fastly (Zacks Rank #2), offering infrastructure software including edge computing and security, anticipates 8.6% revenue growth and significant 25% earnings growth for 2025, supported by a 10% improvement in its 2025 earnings estimate over the last 30 days and new product launches like the Fastly AI Accelerator. Qualys (Zacks Rank #1) is capitalizing on demand for cloud-based cybersecurity, with expected current-year revenue growth of 7.3% and earnings growth of 0.7%, alongside a 0.7% improvement in current-year earnings estimates in the last 30 days, driven by product innovation and strategic acquisitions like Blue Hexagon. Commvault Systems (Zacks Rank #1) focuses on cyber resilience and data recovery, forecasting strong current-year (ending March 2026) revenue and earnings growth of 14% and 13.2% respectively, with its current-year earnings estimate improving 4.9% in the last 30 days. These companies are strategically leveraging AI, expanding product portfolios, and catering to critical business needs, positioning them for continued expansion.

Key Decisions for Investors

• Investors should consider the strong growth prospects and positive earnings estimate revisions for BILL, FIVN, FSLY, QLYS, and CVLT, as highlighted by their favorable Zacks Ranks and specific growth drivers in the expanding cloud computing market.
• Given the projected revenue and earnings growth, particularly the high earnings growth for Fastly (25% for 2025) and Commvault (13.2% for current year), these stocks may warrant further due diligence for inclusion in growth-oriented portfolios.
• Monitor the ongoing adoption of AI-driven solutions and cybersecurity services within these companies, as these are key catalysts identified for their future performance.