3 Analyst Must-Own Stocks for the Cloud Data and Self-Driving Revolutions

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There are two game changing technologies that are going to increase sequentially for this year and beyond, and what they will bring to both consumers and commerce is truly the stuff of the future. While streaming video and data from the cloud are hardly new, the growth rate is the most dynamic in technology. The next is the move toward fully autonomous driving, and with both you have growth drivers for certain tech companies that are incredible.

A new research report from RBC gives a recapitulation of the firm’s recent IT hardware, networking and semiconductor leg of the firm’s bus tech tour. In it the focus is on the unprecedented growth for cloud service providers and the companies that will make the chips going into autonomous driving automobiles. Three stocks are rated Outperform and could be core holdings in technology in an aggressive growth account.

Cisco

This is one of the top mega-cap technology stock picks on Wall Street. Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. It provides switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, wireless access points and servers, as well as next-generation network routing products that interconnect public and private wireline and mobile networks for mobile, data, voice and video applications.

Cisco offers service provider video infrastructure, including set-top boxes, cable/telecommunications access products, and cable modems, as well as video software and solutions. In addition, it provides collaboration products comprising unified communications products, conferencing products, telepresence systems and enterprise mobile messaging products; data center products, such as blade, rack and modular servers, fabric interconnects, software and server access virtualization solutions; security products, including network and data center security, advanced threat protection, web and email security, access and policy, unified threat management, and advisory, integration, and managed services; and other products, such as emerging technologies and other networking products.

Analysts across Wall Street point to an estimated double-digit bookings momentum for Cisco’s Meraki Cloud Services. Many think that Meraki is likely to be a $1 billion plus run-rate business this year, with an incredible 50% to 70% compounded annual growth rate. A jump from 40 GE to 100 GE data center switching and next generation security are also adding to the total sales profile and product mix.

Cisco investors are paid an outstanding 3.3% dividend. The RBC price target for the stock is $35, and the Wall Street consensus target is lower at $32.85. The shares closed most recently at $31.58.