2 Cloud Stocks Poised to Lead as Techs Fizzle

Two high-flying cloud stocks are set to soar even higher, despite the recent pullback in the tech sector and expectations that it may continue to lag the broader market. Both Adobe Systems Inc. (ADBE) and Workday Inc. (WDAY) are handily outperforming not just the S&P 500, but also the Nasdaq Composite and the Technology Select Sector SPDR Fund (XLK), both of which are reflective of the overall tech sector. A number of analysts see that strong performance continuing with Bernstein recently upgrading Workday’s stock rating with asset allocation advisor Chantico Global’s Gina Sanchez telling CNBC’s Trading Nation that, “Adobe probably has the best fundamentals.” The bullish outlook stems primarily from the strong fundamentals exhibited by the underlying companies. Both have strong growth prospects and investors are taking notice. Meanwhile, tech stocks in general could struggle.