RHT Stock Has More Room to Grow
RHT Stock Today’s stock represents one of my favorite investing strategies for gaining from prevailing technology trends. The “picks and shovels” way of stock investing helps investors reap handsome rewards as a trend gathers steam, thereby increasing the demand for the products and services provided by such companies.
One such company is Red Hat Inc (NYSE:RHT), a leading provider of open source software solutions for companies jumping on the cloud bandwagon. The company provides software and services to companies that want to transition to cloud computing. As organizations aim to modernize their IT infrastructure for the hybrid cloud, they are increasingly looking at Red Hat as their key partner in this transformation.
I am bullish on Red Hat stock for the following reasons.
RHT stock is geared to the rising cloud computing trend, which should only become stronger in the coming years. Apart from the agility in operations and the cost savings that result from adopting cloud computing, new cloud technologies are bringing numerous possibilities.
The company’s largest customers continue to expand their commitments; all of its 25-largest deals were renewed during the first quarter. This positive momentum has enabled Red Hat to raise its full-year guidance.
Red Hat’s ability to deliver technologies that help its customers modernize and manage their infrastructure and application development platforms for the hybrid cloud has been instrumental the company’s its success. This has had a positive impact on Red Hat stock, which has gained about 41% year-to-date and has posted a 77% increase over the past five years.
Chart courtesy of StockCharts.com
As changing trends in IT grip enterprises across the globe, the company has lot of potential, and RHT stock has more room to grow.