Here’s a look at the 4 top cloud TSX-listed stocks that have seen the biggest gains year-to-date.
Over the last two decades, cloud computing and cloud investing has slowly made a name for itself in the technology world.
In that regard, IT World Canada suggests that cloud computing is now a “necessary catalyst” for innovation, and there’s certainly no reason to believe that will slow down. As the sector transitions into its second decade, cloud computing has become increasingly instrumental for digital businesses, and more and more companies are chomping at the bit to get in on the action.
Over the next four years, IT World Canada notes that more than half of global enterprises already using cloud will move to an “all-in” cloud strategy.
To that end, the Investing News Network breaks down some of the top cloud stocks on the TSX during the first quarter of 2017.
The list below was generated using The Globe and Mail’s market data filter and shows the TSX-listed cloud companies with the biggest share price gains from January 1 to April 18. Only companies with market caps above $50 million are included.
Here’s a closer look at those companies.
Current share price: $95.81; year-to-date gain: 66.05 percent
Shopify began as an online store to sell snowboard equipment over 10 years ago, but has since transitioned itself into much more. Now, the company develops software for online stores and retail point-of-sale systems.
The company’s cloud-based POS system also allows users to browse catalogs, pick products and process customer sales by swiping credit cards and emailing or printing customer receipts.
In February, Shopify reported its fourth quarter and full year 2016 financial results, noting that total revenue for the year grew 90 percent–up from $205.2 million in 2015 to $389.3 million in 2016.
Current share price: $76.69; year-to-date gain: 22.70 percent
Kinaxis delivers cloud-based supply solutions and provides cloud-based subscription software for supply chain operations. In particular, the company’s RapidResponse is a supply chain management tool that offers a variety of cloud-based configurable applications, including demand planning, supply planning, inventory management, order fulfillment and capacity planning.
In early March, Kinaxis sponsored the ‘Random Acts of Kindness’ in Ottawa, which brings together developers to work with charities, community groups and social enterprises. Prior to that, the company reported its fourth quarter 2016 and full year 2016 results, highlighting a 27 percent increase in revenue over the year.
Current share price: $3.08; year-to-date gain: 9.61 percent
Sandvine is a provider of intelligent network policy control solutions for fixed and mobile operators.
The company’s Cloud Services Policy Controller allows for communications service providers to enable visibility, control and protection services. The “view” services allows for traffic and usage insight, real-time historical reporting, while the “control” allows network resource management and productivity controls. Finally, the “protect” service allows for advanced security options.
In early April, the company reported its Q1 2017 results. Of note, the company reported revenue of $33.3 million for the first quarter of the year.
MacDonald, Dettwiler & Associates (TSX:MDA)
Current share price: $69.97; year-to-date gain: 4.60 percent
Closing out our top 5 list is MacDonald, Dettwiler & Associates, whose primary focus has been in global communications and providing operational solutions to commercial and government organizations all over the world.
On that note, in February the company announced it will be acquiring DigitalGlobe (NYSE:DGI). The combined company will lead in cloud-based information services allowing commercial and government customers “better understand” activity globally.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.